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Opinion: Chancellor Kwasi Kwarteng flies back from US ahead of rumoured u-turn on corporation tax

09:34, 14 October 2022

updated: 17:00, 14 October 2022

Chancellor Kwasi Kwarteng is jetting back early from Washington amid rumours of yet another u-turn on the government's tax slashing 'mini budget' which sent the UK economy into turmoil.

The government has already backed out of abolishing the 45p rate, backed out of backing out of plans to scrap no fault evictions and reportedly backed out of plans to refuse to increase benefits in line with inflation. Political editor Paul Francis analyses an unprecedented start to a premiership.

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Kwasi Kwarteng is flying back from the US Picture: Zara Farrar HM Trasury
Kwasi Kwarteng is flying back from the US Picture: Zara Farrar HM Trasury

There may not be much unity within the Conservative party but there is agreement on one thing: they are in an almighty mess which has the potential to bring down the Chancellor and maybe even the Prime Minister.

In terms of political precedent there is none that comes close. Barely 40 days into her premiership, Liz Truss is battling to save her job and restoring credibility to her programme for growth.

The simmering discontent among a growing number of MPs is close to boiling point, with reports suggesting that if the PM and her Chancellor fail to break the paralysis gripping the party, they may be forced out.

Is there a route out which enables the government to come up with a plan that avoids looking like a monumental u-turn? It doesn’t look like it and if the markets don’t approve, a political car crash is on the cards.

If public declarations of support from Kent MPs are virtually non-existent, it may be because - like everyone else - they are waiting for the outcome of talks between the PM and her Chancellor about the possibility of rowing back on some of the commitments without losing face.

And that just now seems a fairly hopeless cause. Never mind a u-turn: the PM and her co-driver the Chancellor are stuck in a cul-de-sac with no clear way of navigating a way out.

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