The Prime Minister Liz Truss who is in her third week since being elected by the Conservatives to hold the keys for No.10 is facing growing demands for Parliament to be recalled.
The Chancellor Kwasi Kwarteng has been accused by Labour of losing “control of the economy” and Parliament must be recalled “before any more damage is done” since the mini budget unleashed chaos amongst the stock markets and the Bank of England (BoE).
On Wednesday the BoE was forced to take immediate emergency action as the pound continues to lurch lower and is now worth $1.0549, a 1.7% drop on the day. On Monday, it hit an all-time low of $1.0327 against the dollar.
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The Bank said on Wednesday morning that they will intervene in bond markets to try and stabilise them, after the recent selloff.
“It will start buying long-dated gilts from today to “restore orderly market conditions” and stave off a “material risk to UK financial stability.”
Labour leader Sir Keir Starmer said MPs must return to Parliament so that Kwarteng can abandon his strategy “before any more damage is done.”
Scotland’s First Minister Nicola Sturgeon said the Commons should be immediately recalled as the UK in the grip of a “rapidly deteriorating economic crisis.”
Liberal Democrat leader Sir Ed Davey warned, “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.”
Sir Keir said added, “The move by the Bank of England is very serious.
“And I think many people will now be extremely worried about their mortgage, about prices going up and now about their pensions.
“The Government has clearly lost control of the economy.”
He added, “What the Government needs to do now is recall Parliament and abandon this budget before any more damage is done.”