UK

Chancellor Kwasi Kwarteng to return to UK early as major mini-budget U-turn expected

Kwasi Kwarteng will return to the UK from Washington earlier than planned, as another major mini-budget U-turn is expected.

The chancellor was due to brief journalists on Friday morning after attending the International Monetary Fund’s annual meeting in Washington, but held the briefing on Thursday night before announcing he will fly home.

On his return, he is likely to find a significant section of his mini-budget re-drawn following days of open revolt among Tory MPs and an expectation that another major U-turn is on the cards.

It comes amid speculation in Westminster about the fate of Mr Kwarteng, only a few weeks into the job, if his financial plans are scrapped in the coming days.

However, Mr Kwarteng has insisted that his position is safe, telling broadcasters: “I am not going anywhere”.

Meanwhile, mounting pressure has been placed on Prime Minister Liz Truss to reassure the UK’s financial markets and rescue her administration, with her key pledge to scrap the planned increase in corporation tax from 19% to 25% widely seen as a likely casualty.

Downing Street has not denied the policy could be reversed, despite it being one of Ms Truss’s landmark promises.

More on Kwasi Kwarteng

Several reports have also suggested that senior Conservatives are plotting the possibility of replacing Ms Truss with a joint ticket of Rishi Sunak and Penny Mordaunt.

The Times newspaper said party grandees are among those considering replacing her with a “unity candidate”.

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