Floundering PM Liz Truss will hold a Downing Street press conference today - when she is expected to make ANOTHER humiliating U-turn on her mini-Budget.
Her leadership has descended into chaos with Tory grandees said to be plotting to replace her less than 40 days after she took office.
She and Chancellor Kwasi Kwarteng have already been forced to roll back on tax cuts for the UK's highest earners - and it is expected corporation tax proposals will be also be scrapped in today's announcement.
Both Ms Truss and Mr Kwarteng are battling for their political lives after last month's mini-Budget caused chaos in the markets and opened up a massive split within the Tory party.
It is not yet known if Mr Kwarteng will be present at the press conference, having rushed back from the International Monetary Fund (IMF) annual meeting in Washington following a Tory mutiny.
Speculation is rife that Ms Truss may cut him loose in an effort to distance herself from the carnage of the past three weeks. The government has declined to comment.
The Chancellor touched down at Heathrow Airport for emergency talks this morning, having hinted yesterday that a colossal U-turn was on the cards.
In an interview with The Telegraph Mr Kwarteng responded "let's see" when quizzed about a change to his corporation tax proposals.
And asked if anything else might change he said: “I’m not going to play those games about what’s in or out or any of that. What I'm totally focused on is making sure that we get growth in the economy.”
It will be a huge embarrassment for Ms Truss, having pledged to bring down corporation tax throughout her leadership campaign.
Ex-Chancellor Rishi Sunak had planned to raise corporation tax in April from 19p to 25p for many firms. Ms Truss vowed to cancel that in a major leadership pledge, claiming it would stimulate growth.
But this pledge - which could cost the Treasury £19bn-a-year - looks increasingly likely to be dropped.
Labour's shadow Chancellor Rachel Reeves said: “A humiliating u-turn is necessary - but the real damage has already been done to millions of ordinary people now paying much higher mortgages and struggling to make ends meet.
“This is a Tory crisis: made in Downing Street. They have plunged our economy into chaos and crisis with Truss' discredited trickle down approach. It won’t be forgiven or forgotten."
Today is set to be a crunch day in the financial markets, with the Bank of England's emergency bond-buying scheme due to come to an end.
Trade Minister Greg Hands claimed it was "not unusual" to return early from an international visit but hinted that a U-turn was looming.
Asked if more reversals were coming, he told Sky News: "Let's wait and see. You won't have long to wait for the 31st of October for the Chancellor to lay out those plans. I do say that the Prime Minister and the Chancellor are absolutely resolute, determined.
"The growth plan (is) the centrepiece, but we'll have to see some of the detail including a full forecast from the Office for Budget Responsibility on the 31 October."
Mr Hands said the PM had "total confidence" in the Chancellor and said he was an "an incredibly capable person, a very, very bright person who makes good judgment calls".
Reports last night claimed that plots are afoot to replace Ms Truss with a new leadership team of Mr Sunak and Penny Mordaunt, who both stood against her in the summer's bitter leadership campaign.
One backbench Tory MP claimed on Thursday night: “I suspect she’ll be gone within weeks. It’s a certainty”.
Former MP Paul Goodman said “one idea doing the rounds” among backbenchers is that Mr Sunak and Ms Mordaunt could “take over".
One MP told The Times: "Rishi's people, Penny's people and the sensible Truss supporters who realise she's a disaster just need to sit down together and work out who the unity candidate is".
