Sir Keir Starmer has called for parliament to be convened to discuss the turmoil in financial markets following Friday’s mini-budget.
Speaking to reporters, the Labor leader said the Bank of England’s move to launch a temporary bond-buying program to prevent a “material risk” to Britain’s financial stability was “very serious”.
Sir Keir said: “I think a lot of people will now be extremely worried about their mortgages, rising prices and now their pensions.
“The government has clearly lost control over the economy.
“What the government needs to do now is to recall parliament and scrap this budget before more damage is done.”
Parliament is in recess due to the Labor and Tory conferences taking place this week.
The decision to withdraw comes from Prime Minister Liz Truss, who faced international pressure to reverse course after Friday’s Budget sent sterling to a record low against the dollar and forced mortgage lenders to withdraw their offers.
Then in an extraordinary move today, the Bank of England took extraordinary measures to significantly support the economy.
It revealed that it will buy as much long-term government bonds as needed between now and October 14 in an attempt to stabilize financial markets.
In addition to the fall in the value of the pound, investors are also demanding a higher rate of return for UK government bonds – essentially long-term liabilities.
That’s because the level of borrowing needed to fund government handouts, including tax cuts and energy relief for households and businesses, shocked the market, which immediately called into question the sustainability of public finances.
The Lib Dems and the SNP have also called for Parliament to be recalled.
And some Tory MPs are also criticizing the government’s economic plans.
Simon Hoare, Tory MP for North Dorset and chairman of the Northern Ireland Select Committee, said: “In the words of Norman Lamont on Black Wednesday, ‘Today has been a very difficult day.’
“These circumstances are not beyond the control of the Government/Ministry of Finance. They were created there. This senseless insanity cannot continue.’