LONDON: British Prime Minister Liz Truss scrapped a planned corporate tax cut, scrapping a key part of an economic plan that sparked weeks of market and political turmoil.
Truss told a hastily arranged press conference on Friday that she was acting to “reassure markets of our fiscal discipline.”
Truss also fired Kwasi Kwarteng as Treasury chief on Friday, replacing him with the former Cabinet Minister Jeremy Hunt.
Truss is trying to restore order after three weeks of unrest caused by the government’s tax cut “mini-budget”.
The September 23 statement caused the pound to plunge to record lows against the dollar and led the Bank of England to intervene to prevent a wider economic crisis.
Truss pledged to pursue other aspects of her economic plan, saying, “I want to deliver a low-tax, high-wage, high-growth economy.”
Truss, a free-market libertarian, came to power last month pledging to cut taxes to spur growth. But his ability to keep this commitment is now in doubt.

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