Britain's Treasury chief Kwasi Kwarteng said on Friday that he had resigned after Prime Minister Liz Truss asked him to stand aside, in a move that follows market turmoil caused by the pair's contentious economic plan.
"You have asked me to stand aside as your Chancellor. I have accepted," Kwarteng said in his resignation letter to Truss, which he published on Twitter.
The resignation comes as Truss, in power for only 37 days, is due to hold a press conference later on Friday, Downing Street confirmed.
She is expected to scrap parts of their economic package, the Times newspaper reported, in a bid to survive the market and political pressure unleashed by their fiscal plan.
Pressure has been mounting for Truss's government to scrap an economic policy that unleashed turmoil on financial markets.
The battered pound and government bonds rallied on Thursday as the new government began reexamining a package for unfunded tax cuts that has sent borrowing costs surging and forced the Bank of England (BoE) to intervene.
Kwarteng cut short his trip to Washington and returned early to London on Friday. He had been in Washington to attend meetings of G-20 finance ministers as well as the annual meetings of the International Monetary Fund (IMF) and World Bank.
The U.K. government has been under huge pressure to reverse course as polls show its support has collapsed and colleagues have started openly discussing whether there should be replacements in the cabinet.
With pressure mounting on financial markets, the government has already brought forward an announcement for a full fiscal plan that will set out the cost of the unfunded tax cuts and whether they will spark economic growth.