LIZ Truss is expected to announce a mini-budget U-turn today.

The prime minister, along with Chancellor Kwasi Kwarteng, are set to meet later today before announcing key elements of the budget will be abandoned to reassure the markets.

Mr Kwarteng flew back to London on Friday for crisis talks after cutting short a visit to the International Monetary Fund’s annual meeting in Washington.

It follows days of turmoil in the markets amid concerns about the impact of his £43 billion tax giveaway on the public finances.

South Wales Argus: PAPA (Image: PA)

It is understood the Prime Minister’s key pledge to scrap the planned increase in corporation tax from 19% to 25% will be one of the measures cut, as Ms Truss seeks to save her embattled premiership.

One Government source told The Times that the corporation tax was likely to rise, but could still be less than the 25 per cent planned by the previous government.

It comes amid reports that senior Tories are plotting the possibility of replacing Ms Truss with a joint ticket of Rishi Sunak and Penny Mordaunt, with the Times newspaper also reporting that party grandees are considering replacing her with a “unity candidate”.

In an interview with the Telegraph, the Chancellor was insistent that his party could still be trusted with the public finances.

“We’re Conservatives. Fiscal discipline runs right through our DNA”, he told the paper.

The Government’s plans revolve around securing an increase in economic growth – with a target of an annual rise of around 2.5% in gross domestic product (GDP).

The crucial date will be October 31, when the forecasts presented by the Office for Budget Responsibility (OBR) alongside the Chancellor’s statement will give an assessment on whether such a plan is realistic.

Mr Kwarteng on Thursday was insisting that his position was safe, telling broadcasters in Washington: “I am not going anywhere.”