Politics latest: Kwasi Kwarteng set to be sacked as chancellor — follow latest

Liz Truss is poised to sack her chancellor Kwasi Kwarteng and announce plans to raise corporation tax as she abandons key parts of her mini-budget in a bid to reassure the markets.

The chancellor is due to meet the prime minister shortly, with discussions under way in No 10 and No 11 before a public statement.

The government has been left with little choice but to abandon its plans after the markets priced in a reversal of its position, with sterling responding positively to a series of leaks.

Kwarteng flew back early from Washington overnight. The government is expected to announce plans to increase corporation tax later this afternoon, with the prime minister potentially making a public statement.

One government source said that corporation tax