Sir Keir Starmer says Kwasi Kwarteng has “lost control of the economy” after his mini-budget caused market turmoil in UK markets.
The Bank of England was forced to step in yesterday to prevent mass insolvencies of pension funds.
The central bank was forced to take emergency action because of a “material risk to UK financial stability”, while the International Monetary Fund urged the Chancellor to change course.
UK stock and bond markets are believed to have lost at least $500 billion in combined value in the last week, while the pound also hit a record low of 1.0327 against the US dollar on Monday morning after traders were spooked by the Government’s economic plans.
Commenting on the situation, the Financial Times said “Brexit ideology” is what lies behind the UK’s market rout.
“There is an underlying unmentionable: the economic damage caused by Brexit.
“Investors have got the message. Britain is not the bet it once was.”
Related: ‘This inept madness cannot go on’: Tories turn on Truss