The government will raise corporation tax despite promising not to do so in the mini-budget.

Kwasi Kwarteng, who was today sacked as chancellor, promised in the mini-budget last month to keep corporation tax at 19% instead of increasing it to 25% as planned in April.

Liz Truss confirmed her government’s change of direction at a news conference hours after dismissing Mr Kwarteng.

Ms Truss said: “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 right now has to change.

“We need to act now to reassure the markets of our fiscal discipline.

“I have therefore decided to keep the increase in corporation tax that was planned by the previous government.”

She said the change would raise £18bn for the public purse.