Liz Truss has said “I want to be honest, this is difficult” after sacking her chancellor and reversing key policies of her government’s growth plan.

In a news conference shortly after dismissing Kwasi Kwarteng, Ms Truss said: “The way we deliver our mission has to change.”

But she said the “mission remains” to deliver a “low tax, high wage, high growth economy (which) is what I was elected to my party to do”.

Government descends into chaos as PM faces battle to survive – follow latest updates

Ms Truss said she was “incredibly sorry” to lose her good friend Mr Kwarteng, and confirmed that she had appointed Jeremy Hunt in his place.

Ms Truss also confirmed the government would raise corporation tax next April to 25% from 19%, despite pledging not to do so in the mini-budget.

The PM spoke for just three and a half minutes and answered only four questions from journalists, for which she has received much criticism, with some Tory MPs saying the news conference only made things worse.

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Ms Truss said Mr Hunt is “one of the most experienced and widely respected government ministers and parliamentarians, and he shares my convictions and ambitions for our country”.

But she refused to take responsibility for any of the economic turmoil the mini-budget caused, saying: “It is clear that parts of our mini-budget went further and faster than markets were expecting, so the way we are delivering our mission now has to change.”

The Treasury said Mr Hunt would deliver the medium-term fiscal plan on 31 October.

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Moment PM abruptly ends news conference

Truss wants to remain as PM

Determined to remain as prime minister, Ms Truss said she “acted decisively” and in the national interest.

“I am determined to see through what I’ve promised – deliver higher growth, a more prosperous United Kingdom,” she insisted.

“I have to act in the national interest as prime minister.”

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And asked if she would apologise after former Tory chancellor Philip Hammond said she had trashed the party’s winning reputation for economic competence, she refused.

“Well, I am determined to deliver on what I set out when I campaigned to be party leader,” she said.

“We need to have a high growth economy, but we have to recognise that we are facing very difficult issues as a country.”

Read more:

Ministers say PM ‘cannot survive’ – so how could Liz Truss be removed?
Corporation tax raised in second major U-turn of mini-budget

Jeremy Hunt says that while now is not the right time to change Prime Minister, he hasn't ruled out a return to frontline politics
Image:
Jeremy Hunt has replaced Kwasi Kwarteng as chancellor

Economic turmoil

The PM sacked Mr Kwarteng this afternoon, shortly after he landed in London after leaving International Monetary Fund meetings in Washington DC early.

Three weeks ago he unveiled £45bn of unfunded tax cuts in the mini-budget, which pushed the pound to a record low against the dollar, sent the cost of government borrowing and mortgage rates up and led to an unprecedented intervention by the Bank of England.

The economic turmoil forced the government into two U-turns of major policies in the mini-budget: abolishing the 45p rate of income tax for higher earners and axing the planned rise in corporation tax from 19% to 25% next April.

:: The new chancellor, Jeremy Hunt, will talk to Sky News at 7.15am.