Pressure is mounting on the prime minister ahead of an emergency statement by her new chancellor Jeremy Hunt to reassure financial markets over the government’s economic plans.
Mr Hunt is expected to U-turn on more of the government’s tax-cutting plans.
He is also expected provide more clarity on public sector spending – two weeks earlier than planned.
It comes after more Conservative MPs have questioned how long Liz Truss can remain in Downing Street.
Mr Hunt is set to make an announcement on the government’s plans by lunchtime, followed by a statement in the House of Commons in the afternoon.
The cut to National Insurance is expected to survive as it is already close to passing through Parliament.
However, there could be changes to plans to cut the basic rate of income tax from 20p to 19p.
Financial markets appeared to welcome the prospect of more changes to the government’s economic plans.
The pound rose against the dollar earlier and the cost of government borrowing also fell following the news of Mr Hunt’s statement.
On Friday, Ms Truss sacked her Chancellor Kwasi Kwarteng and abandoned one of her flagship tax policies to freeze corporation tax, in response to market turmoil and opposition for her own MPs.
Three Tory MPs – Crispin Blunt, Andrew Bridgen and Jamie Wallis – have since gone public calling for the prime minister to go.
Many others are expressing concerns privately.
“It’s done… we can’t win,” one minister, a Truss supporter who was accepting they will lose their seat whenever a general election comes, told the BBC. (BBC)
