A VETERAN MP has welcomed the appointment of Jeremy Hunt as the country’s new Chancellor as the Government sought to calm the turbulent financial markets.

Kwasi Kwarteng became the holder of the unwanted title for the the second shortest spell as Chancellor in history after being sacked by Prime Minister Liz Truss on Friday.

The Prime Minister also U-turned on another tax pledge saying she will reverse her plan to scrap an increase in corporation tax and admitting the Government’s mini-budget had gone “faster and further” than many expected.

At a press conference on Friday, Ms Truss emphasised her commitment to an efficient, low tax and high wage economy, adding she was “deeply sorry” to dismiss her Chancellor Kwasi Kwarteng.

But the PM also faced calls to resign but said she was not going.

Harwich and North Essex MP Sir Bernard Jenkin supported the PM’s appointment of Jeremy Hunt as Chancellor and added replacing Ms Truss would damage the financial markets further.

He said: “The Government is right to try to stabilise the present volatility in the financial markets, and the appointment of Jeremy Hunt as Chancellor is a wise choice.

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“We must now be calm and wait to see how things develop over the next days, weeks and months.

“Rash talk of ditching the PM, or calls for a General Election, will not calm the financial markets.”

Braintree MP James Cleverly, who is also Foreign Secretary, had already made clear his support for the PM, telling the BBC that replacing Truss would be “disastrous” for the Government.

Colchester MP Will Quince, who backed Rishi Sunak in the Conservative leadership election, and Clacton MP Giles Watling made no comment.

Ms Truss said: “We will do whatever is necessary to ensure debt is falling as a share of economy in the medium term.

“It is clear that parts of our mini budget went further and faster than markets were expecting - we need to act now to reassure the markets of our fiscal discipline.

“I’m absolutely determined to see through what I have promised  to deliver a higher growth more prosperous UK to see us through the storm we’ve faced.”