Sir Keir Starmer has demanded a recall of parliament following the UK being on the verge of a financial meltdown.

The Labour Party leader said the government should abandon plans to slash taxes and ramp up borrowing which have sent financial markets into turmoil.

He said: ‘The government has clearly lost control of the economy … this is self-inflicted.’

‘What the government needs to do now is recall parliament and abandon this budget before any more damage is done.’

Scotland’s First Minister Nicola Sturgeon has also called for the government to re-adjourn.

She said today: ‘UK in grip of rapidly deteriorating economic crisis. Emergency intervention by Bank of England 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.’

The calls to Prime Minister Liz Truss come after The Bank of England was forced to intervene to prevent a ‘material risk to UK financial stability’.

It is in the wake of Chancellor Kwasi Kwarteng’s ‘mini-budget’ speech last week, triggering a market meltdown.

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The value of the currency plummeted after the new government announced its economic proposals on Friday.

It caused the cost of borrowing that the government must pay to hit record highs and has fuelled massive instability in the bonds market.

Sir Keir yesterday announced at the Labour Party conference that it has plans to launch a new publicly-owned energy company called Great British Energy.

Speaking in his party conference’s keynote speech, Sir Keir said ‘GB Energy’ would cut bills and deliver energy independence after being brought in during the first year of a Labour government.

The party leader said the company would provide ‘British power to the British people’.

Sir Keir took aim at his Conservative rivals’ record on energy, arguing that the war in Ukraine was not to blame for the way the Tories had left the UK unprepared for soaring energy bills.

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