Kwasi Kwarteng sacked as Chancellor 

This makes Kwarteng the second-shortest serving Chancellor of all time, serving 38 days. The shortest serving was Ian Macleod, who died after 30 days in office in 1970.

Kwarteng returned early this morning from the United States where he was holding talks with the IMF.

Speaking to the Telegraph in Washington yesterday, Kwarteng insisted he’s “not going anywhere”.

Kwarteng and the Prime Minister introduced a mini-budget exactly 3 weeks ago that has faced extreme backlash from both MPs and markets.

Truss’ sacking of Kwarteng will likely lead to U-turns on most of the policies that were announced within the budget.

The mini-budget featured a reversal of the government’s national insurance rises in April, a cut on income tax, and a commitment not to raise corporation tax, among other policies. Many of these policies have proved to be less than popular, and Truss will likely walk some of them back.

In a letter to the Prime Minister published on Twitter, Kwarteng said: "You asked me to stand aside as your Chancellor. I have accepted." 

Kwarteng goes on to say that: "It is important now as we move forward to emphasise your government’s commitment to fiscal discipline. The medium-term fiscal plan is crucial to this end, and I look forward to supporting you and my successor to achieve that from the backbenches"

He concludes with: "Your success is this country’s success and I wish you well."

Also taking to Twitter, Shadow Chancellor Rachel Reeves stated: "Changing the Chancellor doesn’t undo the damage that’s been done. We don’t just need a change in Chancellor, we need a change in government."

The former foreign secretary Jeremy Hunt has since been confirmed as Kwarteng’s successor. 

The Prime Minister is expected to hold a news conference this afternoon, at 2:30pm.