Kwasi Kwarteng has confirmed he has been sacked as the UK's Chancellor of the Exchequer ahead of what is expected a complete re-write of the government's mini-Budget.
In a letter, Kwarteng said he had been asked to 'step aside' by the prime minister and had accepted, adding he still believed the policies she was following were the right ones.
Jeremy Hunt has been named as the new chancellor, which pushed the pound higher after earlier falls.
Other changes at the Treasury are also expected, though Kwarteng's sacking might also spark a challenge to PM Liz Truss.
She is to hold a press conference at 2pm when details of the latest u-turn will be announced.
Leaks this morning suggested that the freeze on corporation tax will not now happen with the rate increasing to 25% from 19%.
Cuts to national insurance and the 1p reduction to the basic rate of income tax will remain in place, the report said.
Speculation about Kwarteng's future was rife yesterday when reports first emerged that the government was to rip up its mini-budget just three weeks after it was released.
Concerns about how the government would pay for the tax cuts proposed sent the pound and UK government bonds or gilts tumbling, sparking a crisis among pension finds that required intervention by the Bank of England.
Papers this morning were suggesting Penny Mordaunt and former chancellor Rishi Sunak as replacements for Truss and Kwarteng if both were to leave.