The Chancellor Kwasi Kwarteng has cut short his visit to the United States and is heading home from Washington you n what appears to be the preparation for a U-turn on last month’s mini budget
Media speculation this morning is that Liz Truss is planning to reverse her tax plans, and will raise corporation tax in particular.
Downing Street insists that no decisions have been taken, but according to this morning’s Financial Times,£24 billion in planned tax cuts could be scrapped
including the £18 billion plan to cancel a scheduled increase in corporation tax in 2023.
Truss will keep the £13 billion cut in national insurance and temporary stamp duty cut but that all other items in the budget including VAT-free shopping for foreign visitors, and cuts to dividend taxes could be reversed
Meanwhile speculation on the future of the Prime Minister continues with reports that some senior MPs are plotting a Rishi Sunak/Penny Mordaunt joint ticket to win the support of backbenchers and oust Truss.
