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Liz Truss鈥� decision to sack her chancellor and U-turn on another flagship fiscal policy is 鈥渢oo little too late to bring lasting confidence to the market鈥�, the chairman of Gleeds has warned.

Richard Steer said today鈥檚 action by the prime minister was a 鈥渟ticking plaster approach when the economy is in danger of bleeding out鈥� and called for a 鈥渃hange at the top鈥�.

The government鈥檚 latest reversal on plans to cut corporation tax was announced this afternoon shortly after Number 10 revealed chancellor Kwasi Kwarteng had been sacked and replaced with former foreign secretary Jeremy Hunt.

Steer said Truss was now in a 鈥渢ailspin of disaster recovery鈥�, adding the country needed 鈥渓ess scapegoating, a clean sweep and some practical, policies grounded in pragmatism鈥�.

Truss鈥� decision to proceed with a planned rise in corporation tax to 25%, a key policy of her leadership election rival and former chancellor Rishi Sunak, is the latest in a string of climb downs made in an effort to calm financial markets in the wake of last month鈥檚 controversial mini-budget.

The government has already abandoned plans to scrap the 45p top rate of income tax and brought forward a medium-term fiscal plan from November to 31 October under intense pressure from financial institutions and backbench Conservative MPs.

Federation of Master Builders chief executive Brian Berry said the mini-budget 鈥渉ad been a disaster for the economy and I have questions about [Truss鈥橾 ongoing credibility鈥�. 

Berry added he did not believe Truss鈥� moves would 鈥渞everse the damage that has already been done to the economy鈥�.

鈥淭he increase in interest rates that are already having a big impact on the housing market will mean that householders have far less to spend, and the impact of that on small builders means less work in the coming months and years ahead,鈥� Berry said.

Kwarteng spent just 38 days in office, the second shortest ever tenure as chancellor. He said in his resignation statement that Truss鈥� 鈥渧ision of optimism, growth and change was right鈥�.

He said that 鈥渇ollowing the status quo was simply not an option鈥� in the face of an 鈥渋ncredibly difficult鈥� economic situation of rising global interest rates and energy prices. Chief secretary to the Treasury Chris Philp has also been demoted to the cabinet office and replaced by paymaster general Edward Argar.

Simon Rawlinson, head of strategic research and insight at Arcadis, agreed that Truss鈥� economic credibility was 鈥渁bsolutely shot鈥� and that she was not 鈥渙ut of the woods at all鈥�.

He questioned how much the new chancellor could achieve with such a short period of time before the medium-term fiscal plan at the end of the month.

鈥淲ith the chief secretary to the Treasury going as well, basically there is going to be a wholesale ripping up of all the work that has been done over the last couple of weeks 鈥� it really isn鈥檛 very good indeed,鈥� he said.

鈥淭hey only have two weeks to come up with the plan so it is unlikely to be very sophisticated.鈥� 

Rawlinson also noted the prime minister鈥檚 reference to 鈥渃ontrol[ling] the size of the state鈥� and a 鈥渕ore efficient鈥�, suggesting that her choice of words 鈥渋mplies very, very deep cuts indeed鈥�.

鈥淪maller state is code for fewer people, and then when they talk about efficiency that means smaller spending envelopes,鈥� he said.