This will raise £18bn for the Exchequer and will see corporation tax for larger businesses increasing from 19% to 25%.

Speaking at a brief press conference, Liz Truss said: ‘Parts of our mini Budget went further and faster than markets were expecting. We need to act now to assure markets of our fiscal discipline – we have decided to keep corporation tax rise and this will raise £18bn a year. It will act as a downpayment on our full medium term fiscal plan which will be accompanied by a full OBR costing.’

However, this still leaves an estimated £25bn in unfunded tax cuts.

Simon Crookston, partner at Crowe UK said: ‘There are two things that businesses require from a progressive tax system, to enable it to function efficiently: ‘simplicity’ and ‘certainty’. The continual U-turns, like today’s rise in corporation tax to 25%, are very unhelpful for business.’

Truss added