Prime Minister Liz Truss is to hold a press conference later today, Downing Street has said.

Pressure has been mounting on the Prime Minister to scrap parts of her mini-budget in the days to come, amid calls for Ms Truss to reassure markets and rescue her administration.

It comes amid reports that senior Tories are plotting the possibility of replacing Ms Truss with a joint ticket of Rishi Sunak and Penny Mordaunt, with the Times newspaper also reporting that party grandees are considering replacing her with a “unity candidate”.

The Prime Minister’s key pledge to scrap the planned increase in corporation tax from 19% to 25% is widely seen as a likely casualty in the coming days, as Ms Truss seeks to save her embattled premiership.

York Press: PAPA (Image: PA)

Downing Street on Thursday did not deny that the potential exists for a reversal on the corporation tax policy, one of the landmark promises made by Ms Truss in her pitch to become Tory leader.

It came amid reports that talks were under way between No 10 and the Treasury on abandoning elements of the £43 billion tax-cutting plan.

Speculation was fuelled further when the Chancellor, in an interview with the Telegraph, only said “let’s see” when asked about the expectation from financial markets that the Government could ditch its corporation tax promise.

Mr Kwarteng also insisted to the Telegraph that there would be “no real cuts to public spending”, appearing to double down on comments made in the Commons by the Prime Minister on Wednesday.

York Press: PAPA (Image: PA)

But he told the paper: “Let’s face it, there are difficult choices within that you have to prioritise.

“You have to make sure that you know the public is getting value for money. And I make no apologies for that, there has to be some sort of fiscal discipline.”

In the same interview, he was insistent that his party could still be trusted with the public finances.

“We’re Conservatives. Fiscal discipline runs right through our DNA”, he told the paper.

The Government’s plans revolve around securing an increase in economic growth – with a target of an annual rise of around 2.5% in gross domestic product (GDP).

The crucial date will be October 31, when the forecasts presented by the Office for Budget Responsibility (OBR) alongside the Chancellor’s statement will give an assessment on whether such a plan is realistic.

Mr Kwarteng on Thursday was insisting that his position was safe, telling broadcasters in Washington: “I am not going anywhere.”