UK PM Truss battles to stay in power after tax reforms trashed

New finance minister Hunt told parliament Truss had agreed to reverse almost all the tax measures announced three weeks ago as the grim faced premier looked on

New finance minister Hunt told parliament Truss had agreed to reverse almost all the tax measures announced three weeks ago as the grim faced premier looked on

Britain's Liz Truss on Tuesday battled to salvage her position as prime minister, after market turmoil at her tax-slashing plans forced a series of humiliating U-turns that have put her job in jeopardy.

The beleaguered leader -- only six weeks into her tenure -- met senior ministers for their weekly cabinet, the day after new chancellor of the exchequer Jeremy Hunt announced almost all her debt-fuelled tax cuts would be reversed.

Hunt -- who replaced her sacked ally Kwasi Kwarteng last Friday -- urged ministers "to look at finding ways to save taxpayers' money," ahead of detailing the government's revised medium-term fiscal plans on Halloween.

But even Conservative MPs are publicly joining opposition lawmakers in declaring her position untenable, with the 47-year-old's credibility seemingly in tatters.

The pollster also found she was the most unpopular leader it has ever tracked, scoring a net favourability of -70.

- Spending cuts -

Truss had already staged two embarrassing U-turns, scrapping tax cuts for the richest earners and on company profits, before then firing close friend Kwarteng.

He estimated all the changes would raise about £32 billion ($36 billion) per year, after economists estimated the government faced a £60-billion black hole. Hunt also warned of tough spending cuts.

The International Monetary Fund said in a statement Tuesday that recent announcements by UK authorities "signal commitment to fiscal discipline" and help align policies in the fight against inflation.

Truss sought to draw a line under the largely self-inflicted crisis by apologising in a BBC interview Monday -- but she insisted she would remain in office.

She is set to return to the House of Commons on Wednesday for a session of Prime Minister's Questions seen as a crucial, possibly last, opportunity to reassert her authority.

Following Monday's performance, The Sun tabloid branded Truss "the Ghost PM", while left-wing tabloid The Mirror called the situation a "catastrophic humiliation".

"It's hard to conceive of a more serious political and economic crisis in recent times than that which Britain now faces," its editorial said.

Under current party rules, she cannot be challenged internally through a no-confidence vote in the first year, but speculation is rife they could be changed to allow for a ballot.

"I think her position is untenable," Conservative MP Charles Walker told Sky News.

"Given how skittish our politics are... I don't think that there's the opportunity to make any more mistakes," he told Sky News.

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