After just a few weeks in the position, Liz Truss made the most difficult choice of her political career by dismissing Chancellor Kwasi Kwarteng as a result of the economic impact from his now-infamous mini-budget three weeks ago, had become a political diversion that did not aid the country in moving forward.

Jeremy Hunt, a long-time member of the Conservative Party who backed Liz Truss’s rival in the party’s summer leadership battle, has been chosen to replace Kwasi Kwarteng as the UK’s new Chancellor.

“It is clear that parts of our mini budget went further and faster than the markets were expecting,” Truss said.

Corporation Tax U-Turn

The increase in company tax from 19% to 25% that had been proposed by former chancellor Rishi Sunak was something that Truss wanted to scrap initially because she thought it would be detrimental to economic development. However, this major pillar of her economic policy has been abandoned, as she now promises to maintain the tax rate at its present level.

The corporation tax rise from 19% to 25% will now go ahead as planned in order to help promote economic stability and to raise money to help the country to grow during this difficult time.

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We hope this has informed you on the recent Prime Minister press conference and how this will affect businesses. Get in touch with us at enquiries@aitaccountants.co.uk if you require support for your business.