Liz Truss’s alleged plan to U-turn on her corporation tax pledge could bring “joy” to the markets, an expert has said. 

Mike Owens, UK Sales Trader at Saxo, said:”The pound has risen this morning off the back of news Prime Minister Liz Truss will be making an emergency announcement this afternoon, reported to be a U-turn on her Government’s failed mini-budget proposal.

“GBP rose to $1.136 in the early hours, but has since scaled back to $1.120, as the country awaits the PM’s latest update, bringing slight optimism to investors who watched the market tank off the back of Kwasi Kwarteng’s ‘growth plan’ last month.

“This morning the Chancellor has ended up losing his job, with Truss, who has persistently insisted she is not for turning, now set to go back on her corporation tax pledge, instead raising corporation tax to 25%, previously set by Rishi Sunak.”

“This historic U-turn could bring some joy to the market, though act as a warning and increase uncertainty over further short term change of hearts, which will continue to see the economy travel down Liz Truss’ political helter skelter.”