Liz Truss scraps corporation tax cut in latest Mini Budget U-turn

Second U-turn since Mini Budget

The UK government has scrapped plans to cut the corporation tax introduced in the Mini Budget, Prime Minister Liz Truss announced at a press conference today (14 October) in yet another fiscal policy U-turn.

Speaking at a press conference shortly after 2.30pm, she said that it is "clear" that parts of her government's Mini Budget have gone "further and faster" than expected, adding the government now needs to act "to reassure the markets of our fiscal discipline". Therefore, she said the decision has been made to keep the increase in corporation tax, which she said will raise £18bn in taxes for the country. In his Mini Budget speech last month, Kwasi Kwarteng had pledged to scrap a corporation tax hike from 19% to 25% which had been scheduled for April next year by Rishi Sunak. The corpor...