Liz Truss is expected to scrap parts of her mini-budget in the days to come, amid growing pressure on the Prime Minister to reassure markets and rescue her administration.

Chancellor Kwasi Kwarteng is due to return from the International Monetary Fund’s (IMF) annual meeting in Washington this weekend.

He is likely to find a significant section of his mini-budget changed after days of revolt among Tory MPs when he returns to London, reports suggest.

However, according to the BBC, the Chancellor has now cancelled planned meetings in the US and is leaving a day early for “crunch talks in the UK” over the mini-budget.

In the early hours of Friday morning the national broadcaster as well as The Times and the Financial Times began reporting that Mr Kwarteng had cancelled appointments at the IMF meetings and was flying home.

The Northern Echo: PAPA (Image: PA)

The PA news agency has contacted the Treasury for comment.

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.

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”.

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.

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.”

It comes amid speculation in Westminster about the fate of the Chancellor, only a few weeks into the job, if his financial plans are torn up in the coming days.