Liz Truss and Kwasi Kwarteng faced demands to recall the House of Commons in an attempt to calm markets following the chaos unleashed by the Chancellor’s mini-budget.
The Bank of England was forced to take emergency action, buying up long-term Government bonds because of a “material risk to UK financial stability”, while the International Monetary Fund urged the Chancellor to change course.
Scotland’s First Minister Nicola Sturgeon said the Commons should be immediately recalled from its break for the party conferences with the UK being in the grip of a “rapidly deteriorating economic crisis”.
UK in grip of rapidly deteriorating economic crisis. Emergency intervention by @bankofengland to reduce damage of UK gov own policies extraordinary.
Commons should be immediately recalled (where even is PM?) & as at least an initial symbol of sense, top tax rate abolition dumped
— Nicola Sturgeon (@NicolaSturgeon) September 28, 2022
Shadow chancellor Rachel Reeves said Mr Kwarteng “must make an urgent statement on how he is going to fix the crisis that he has made”.
And Liberal Democrat leader Sir Ed Davey said: “Liz Truss has 24 hours to fix this economic disaster and prevent people losing their homes.
“Now is the time for the Prime Minister to recall Parliament to reassure not just the financial markets, but also British homeowners at risk of higher mortgage costs.”
Their decisions will cause higher inflation and higher interest rates - and are not a credible plan for growth.
The Chancellor must make an urgent statement on how he is going to fix the crisis that he has made.
— Rachel Reeves (@RachelReevesMP) September 28, 2022
MPs are not due to return to Westminster until October 11 following the break for the party conferences.
The Chancellor is due to address the Tory conference in Birmingham on Monday but faces calls to speak to the nation before that.
Ms Reeves said: “People will be deeply worried about the cost of their mortgage, about their pensions, and about the impact this will have on their cost of living.
“This is a serious situation made in Downing Street and is the direct result of the Conservative Government’s reckless actions, which include tax cuts for the richest 1%.
“Their decisions will cause higher inflation and higher interest rates – and are not a credible plan for growth.
“The Chancellor must make an urgent statement on how he is going to fix the crisis that he has made.”