Jeremy Hunt,who three years ago was runner-up to Boris Johnson in a Conservative Party leadership election,has been appointed as the new Chancellor.

The value of the pound had collapsed to record lows against the US dollar and British bonds plunged a fortnight ago after Kwarteng unveiled his“mini” Budget involving £45 billion of debt-financed tax cuts.

In response the Bank of England unleashed a dramatic £65-billion ($109b) bond-buying scheme as it warned of “material risk” to UK stability and pension markets amid the chaos that has sent government borrowing costs soaring.

Truss said she had “acted decisively” because her priority was to ensure the country’s economic stability.

“I want to be honest. This is difficult. But we will get through this storm and we will deliver the strong and sustained growth that can transform the prosperity of our country for generations to come.”

Truss insisted that the “mission remains the same” when asked about her own future in the job,amid growing speculation senior Conservatives had been holding talks about replacing her with a joint ticket of Rishi Sunak and Penny Mordaunt,who finished first and third in July’s ballot of MPs for the leadership position.

The government’s record-low standing in polls — in one survey the Conservatives have fallen to 19 per cent,with Labour enjoying a 34-point lead — has increased the pressure on Truss from within her own party.

A growing number of disillusioned MPs had set a deadline of the government’s economic statement on October 31 to end the turbulence in the financial markets,The Daily Mailreported.

Kwarteng had earlier confirmed that he has been sacked by posting a letter he had sent to Truss on Twitter.

In it,he said:“You have asked me to stand aside as your Chancellor. I have accepted.”

“When you asked me to serve as your Chancellor,I did so in full knowledge that the situation we faced was incredibly difficult,with rising global interest rates and energy prices. However,your vision of optimism,growth and change was right.

Truss has already dropped their pledge to scrap the 45 per cent tax rate for high-income earners,after a large-scale rebellion from backbench MPs who threatened to vote against the legislation.

Hunt will be Britain’s fourth chancellor in four months,with Kwarteng serving just eight more than those managed by the Conservative Iain Macleod,who died in office after just 30 days in 1970.

Nadhim Zahawi,who took over from Rishi Sunak in July after his resignation in protest of Johnson’s handling of the several scandals which led to his downfall as prime minister,served for 63 days.

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