Speculation is mounting that the UK government is set to scrap parts of its mini-budget despite denials from a Downing Street spokesman.
In another day of political twists and turns Sky News reported that discussions are under way in Number 10 over whether to scrap some of the fiscal measures announced on 28 September.
Sky’s deputy political editor Sam Coates said he has heard "active" conversations are happening at the top of Liz Truss's government.
Coates said: "There is a conversation going on inside government, I understand, about whether or not to junk some of the measures from the mini-budget.”
"Now, we don't yet know what they would be - potentially that could be following the advice of Tory MP Stephen Hammond and maybe delaying some of the corporation tax changes that were announced in the mini-budget.”
"Perhaps there could be changes to dividend tax.”
"All of this is being looked at quite actively."
The Guardian’s Pippa Crerar backed this up reporting that corporation tax may well be increased as part of efforts to balance the books.
All of this is happening with the chancellor away in Washington at the IMF conference and he has stuck to the party line for now telling the BBC “Our position hasn't changed. I will come up with the medium term fiscal plan on the 31st of October as I said earlier in the week, there'll be more detail then.”
When asked whether there would be a U-turn on corporation tax he said “My total focus is on delivering on the mini budget.”
The speculation surrounding a U-turn followed a pretty torrid day for the Prime Minister, Liz Truss, on Wednesday who followed an uncomfortable PMQs with a subdued meeting with her backbenchers which was described as “funereal” and a “complete disaster.”
Sources in the room of backbench MPs said Robert Halfon MP told the prime minister she had 'trashed' blue collar conservatism and that the party of the National Living Wage was now cutting tax for millionaires and indicating it may 'cut affordable housing and benefits.'