Liz Truss has described sacking her chancellor and scrapping a major economic policy after just 39 days as prime minister as “difficult”.

In a brief statement after a day of turmoil, she reversed planned cuts to business tax aimed at boosting growth.

She admitted that “parts of our mini-budget went further and faster” than the markets were expecting.

But she insisted she would stay on as PM to see through her “mission” to get the economy growing.

“I’m absolutely determined to see through what I promised – to deliver a higher growth, more prosperous United Kingdom to see us through the storm we face,” Ms Truss said.

The eight-minute news conference came after a dramatic day in which the prime minister fired Kwasi Kwarteng as chancellor after he returned early from a US summit.

The statement marks the second major U-turn on the mini-budget after Ms Truss cancelled her plan to scrap the top rate of income tax earlier this month.

In office for 39 days, Ms Truss won the Conservative Party leadership last month after promising to slash taxes and deregulate the economy in a bid to “get Britain moving”.

On 23 September, Mr Kwarteng unveiled a so-called mini-budget to deliver the prime minister’s vision, announcing the biggest package of tax cuts in decades.

But the mini-budget spooked financial markets and sparked a revolt among Tory MPs, who urged the prime minister to drop parts of her economic plan to shore up the UK’s finances.

Responding to the Prime Minister’s statement this afternoon, Charandeep Singh BEM, Deputy Chief Executive, Scottish Chambers of Commerce, said: 

“Scottish businesses have been urgently looking for the UK Government to address ongoing economic challenges and uncertainty, and to provide firms the clarity and support that they need to make it through the growing cost emergency.

“The instability of recent weeks has frozen investment and impacted livelihoods, it was therefore critical that the UK Government responded to the concerns of business and the markets.

“Businesses always seek a lighter tax burden but the priorities that are on the top of our agenda are rocketing energy and fuel bills alongside rising inflation and interest rates.

“The UK Government must now prioritise restoring fiscal credibility to give businesses and investors confidence to invest, as well as a longer-term plan to support businesses through what will be a challenging winter.”

Scottish Chambers Statement