Liz Truss is set to hold talks with Mr Kwarteng shortly, after he returned to London early from a visit to the International Monetary Fund’s annual meeting in Washington.

The Prime Minister is set to hold a press conference later today. Timings – and the detail of what will be announced – are yet to be confirmed.

Before news of the sacking emerged, Downing Street said the Chancellor would not be appearing at the press conference.

Chancellor of the Exchequer Kwasi Kwarteng arrives in Downing Street, London, after returning from the US ahead of schedule for urgent talks with Prime Minister Liz Truss as expectations grow that they will scrap parts of their mini-budget to reassure markets. Picture date: Friday October 14, 2022.

Mr Kwarteng’s dismissal and a widely expected U-turn on scrapping the corporation tax rise would be part of an effort to reassure markets after the mini-budget turmoil.

Downing Street refused to comment on the speculation.

If confirmed today, Mr Kwarteng would become the Chancellor with the shortest time in office since the 1970s, and the second-shortest of all time.

His predecessor Nadhim Zahawi, was chancellor between July 5 and September 6.

Chancellor Kwasi Kwarteng expected to be sacked after just 40 days in office