On another bruising day for the UK Government, newly-appointed Chancellor Jeremy Hunt confirmed the policies that cost Kwasi Kwarteng his job had been scrapped, leaving Ms Truss’s authority in tatters.

Given the chance to explain the decision after an urgent question filed by the Labour party, the Prime Minister instead sent Penny Mordaunt, who failed to explain why Ms Truss could not make it.

Monday began with a seismic U-turn, as Mr Hunt confirmed the policies that led to the South West Norfolk MP becoming Prime Minister were axed.

Mr Hunt scaled back the energy support package and ditched “almost all” the tax cuts as he tried to restore economic stability following weeks of turmoil on the financial markets.

He announced the plan to cap the cost of energy for all households for two years will now end in April 2023, with targeted help beyond that for those most in need.

There was also an end to April’s planned 1p cut to the basic rate of income tax, which will now stay at 20p indefinitely, raising an extra £6 billion a year.

Mr Hunt also ditched a 1.25 per cent cut in dividend tax planned for April, worth around £1 billion a year to the Exchequer, and dropped plans to ease IR35 rules for the self-employed.

Liz Truss's premiership is on the brink despite appointing Jeremy Hunt as Chancellor.

A VAT-free shopping scheme for overseas tourists was also cut, as was the decision to freeze alcohol duty rates.

The Government had already abandoned plans to scrap the 45p rate of income tax for top earners and had U-turned over a promise not to increase corporation tax.

In an emergency statement designed to calm the markets on Monday morning, Mr Hunt told MPs: “We are a country that funds our promises and pays our debts and when that is questioned – as it has been – this Government will take the difficult decisions necessary to ensure there is trust and confidence in our national finances.

“That means decisions of eye-watering difficulty.”

He said “every one of those decisions, whether reductions in spending or increases in tax” would be shaped by “compassionate Conservative values”.

Mr Hunt’s appointment is an attempt to shore up support among the left of the Tory party, with the Prime Minister’s own MPs considered a bigger threat to her premiership than the Labour party.

Financial markets, which had been spooked by the prospect of unfunded tax cuts on top of emergency interventions in the energy market and the cost of Covid-19 support, appeared reassured by Mr Hunt’s announcements.

However, the Resolution Foundation think-tank said the latest mini-budget U-turns mean the size of the tax cuts for the typical British household next year have been slashed from £500 to £290, and from £5,380 to £1,650 for the richest 10 per cent of households.

“Having promised to reduce taxes, the Government is now setting taxes on course to rise as a share of GDP to around 36 per cent by the end of the Parliament – up from 33 per cent at the start,” the Resolution Foundation said.

What followed was then one of the most surreal events in recent political history, as Ms Truss failed to show up for Labour's urgent question, without any explanation offered as to why.

She instead sent Ms Mordaunt – a former leadership contender viewed as a candidate to replace Ms Truss – who could only say the Prime Minister was “detained on urgent business”.

Shouts of “where is she?” and “weak” could then be heard in the Commons as MPs grew increasingly frustrated at her absence.

Commons Leader Ms Mordaunt said: “With apologies to the Leader of the Opposition and the House, the PM is detained on urgent business … and I’m afraid you’ll have to make do with me.”

Sir Keir mocked Ms Truss as he said: “The lady is not for turning – up.”

He said the Prime Minister had no mandate, adding: “How can Britain get the stability it needs when all the Government offers is grotesque chaos?

“How can Britain get the stability it needs, when instead of leadership we have this utter vacuum?”

Stella Creasy, Labour MP for Walthamstow, said it was the job of the Prime Minister to take big decisions on many issues before adding: “All we know right now is, unless she tells us otherwise, the Prime Minister is cowering under her desk and asking for it all to go away.

“Isn’t it about time she did and let somebody else who can make decisions in the British national interest get in charge instead?”

Ms Mordaunt replied: “Well, the Prime Minister is not under a desk, as the honourable lady says …”

The minister could barely be heard at this point due to laughter and heckling from opposition MPs.

Ms Mordaunt added: “I can assure the House that, with regret, she is not here for a very good reason.”

Earlier, Ms Mordaunt defended the Prime Minister’s decision to appoint Mr Hunt as Chancellor, saying it was the “right thing to do” and “it took courage”.

She went on to say Sir Keir had not stuck by pledges he made in his own leadership campaign.

SNP deputy Westminster leader Kirsten Oswald accused Ms Truss of “hiding in Downing Street”.

She said: “A Prime Minister terrified to answer for the mess she has made.

“The mess which will cause so much harm to all of our constituents.

“Can the Leader of the House tell us exactly where on earth is the Prime Minister and if she doesn’t even have the backbone to show up here today, is there really any point in her showing up here again? Surely time’s up, she needs to go and let the people decide.”

The Prime Minister later arrived in the Commons ahead of the statement by the new Chancellor, where she was greeted with ironic cheers.

The Scotsman understands Ms Truss had been meeting with Sir Graham Brady, the chair of the 1922 committee.

However, this was a pre-planned meeting, rather than crisis talks.

Ms Truss was due to meet the moderate One Nation Conservatives group in Parliament on Monday evening before an informal reception with her Cabinet.

But after missing for much of the day, new polling by Redfield and Wilton gave Labour a 36 per cent lead.

Senior Tory backbencher Sir Charles Walker said Ms Truss’s position was “enormously precarious” after abandoning almost her entire economic policy.

Sir Charles, a former vice-chairman of the 1922 Committee of backbench MPs, told BBC Radio 4’s The World At One: “If there was a general election tomorrow – which there won’t be – we’d be a smaller party than the SNP.

“We wouldn’t even be the party of opposition. That’s bound to concern colleagues – hundreds of colleagues.

“The Prime Minister’s position is enormously precarious. When you are in this sort of position I think you have got to expect the party won’t tolerate for any length of time – certainly not weeks.”

Sir Charles also became the fifth MP to publicly call for Ms Truss to go.

He told Sky News’s Beth Rigby: “I think her position is untenable. She has put colleagues, the country, through a huge amount of unnecessary pain and upset and worry.

“We don’t need a disruptor in No 10. We need a uniter.”

Liz Truss refuses to explain herself to Commons as new Chancellor confirms mini-budget has been abandoned

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