Liz Truss aims to reverse a tax cut While Kwasi Kwarteng is out of the country

According to reports, the PM is considering raising company tax next year in an effort to ease market turbulence following the Chancellor's mini-Budget.

As calls from MPs to fire her Chancellor mount, Liz Truss is holding discussions about rolling back some of her tax-cutting measures.

According to reports, the Prime Minister is considering raising company tax next year in a bid to soothe the markets after Kwasi Kwarteng's slew of unfunded tax cuts alarmed them.

When asked whether he would reverse his decision to annul a raise in company tax, Mr. Kwarteng, who is presently attending an IMF summit in Washington, responded to the Telegraph with the words "Let's see," suggesting that a U-turn was about to occur.

The Chancellor himself had earlier insisted that the Treasury's position "had not changed," but now that officials have ruled out the possibility of a U-turn on the Government's tax-cutting plans, there is a broad sense of confusion at the top of Whitehall.

A former minister claimed that before he left for the IMF conference, Mr. Kwarteng had decided against a U-turn of the mini-Budget measures, adding to the confusion in Downing Street. The Chancellor was virtually forced into a U-turn by the Prime Minister's decision to initiate a review while he was abroad from the country.

One senior backbencher told i that Mr Kwarteng is on “very, very thin ice”, due to the impact his mini-Budget has had on the financial markets in recent weeks.

“Any form of reversal, which is pretty inevitable now, probably means he’s done, already. And where does that leave the Prime Minister? Frankly, she’s in a horrendous situation. She could end up being a lame duck after a month-and-a half,” the MP said.

Downing Street said “work is ongoing between the Chancellor and the Prime Minister, as you’d expect, ahead of the medium-term fiscal plan” but a spokeswoman refused to be drawn on the nature of the discussions or the possible scrapping of the corporation tax commitment.

Mr. Kwarteng met with his G20 counterparts on a dramatic day in Washington, but he skipped a later extended meeting with foreign finance ministers and bank executives, including Andrew Bailey, governor of the Bank of England.

According to Treasury officials, Mr. Kwarteng's deputy attended the meeting, as is customary when Chancellors attend IMF discussions. Instead, the Chancellor had a private meeting with the German Foreign Minister.

Despite rumors that the Chancellor was being sent back to the UK to handle the crisis, a Treasury official claimed there were no preparations for him to leave the IMF early.

The possibility of a mini-Budget U-turn caused the pound to momentarily rise; many now think Ms. Truss will be compelled to abandon the proposals since they have already been included into market prices.

According to Priti Patel, a former home secretary, "market forces will likely dictate some of these adjustments today."

“The market is going to dictate this, primarily because we want to see stability,” she said. “Stability is absolutely crucial, for everyone to carry on living their lives, for the institutions to function, but actually for the British people to have the stability that they need in their lives as well.”

But the plans for a U-turn were criticised by Ms Truss’s economic guru Professor Patrick Minford, who told the BBC it was “really important we don’t do something really stupid at this point”.

“Liz Truss’s policies for growth are absolutely right and to be thrown off them by a bit of market turbulence is insane.”