Liz Truss agreed to Jeremy Hunt tearing up her mini-budget during a meeting over the weekend.
The prime minister’s official spokesman said: “The chancellor and prime minister discussed these measures and agreed on them over the weekend.”
In a briefing with journalists, the spokesman was asked if Ms Truss would rule out resigning, to which he responded that the PM was working very closely with the chancellor.
The spokesman repeated the admission that the mini-budget “went too far, too fast”.
Ms Truss will be in the House of Commons for Jeremy Hunt’s statement there later today, and will also be meeting with Conservative MPs.
“The prime minister wants to continue to engage with her cabinet colleagues as part of a series of engagements carried out both with cabinet and with Parliament more broadly,” the spokesman said.
Asked whether the government’s commitment to increase defence spending remained, the spokesman said the prime minister and chancellor “remain committed” to increasing defence spending, but added, “the long-term ability to fund increased defence spending will depend on the economic stability and on a healthy growing economy.”
Source: Sky News