The Labor Party leader said the government should abandon plans to cut taxes and increase borrowing, which have roiled financial markets.
He said: “The government has clearly lost control of the economy… It’s self-inflicted.”
“What the government needs to do now is to 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 be adjourned again.
She said today: “Britain in the grips of a rapidly worsening economic crisis. Emergency intervention by the Bank of England to lessen the damage of the UK government’s own policies.
‘Commons should be recalled immediately (where is PM anyway?) & as at least a first symbol of sanity the abolition of the top tax rate should be abolished.’
The calls to PM Liz Truss come after the Bank of England was forced to step in to prevent a “material risk to UK financial stability”.
It follows Chancellor Kwasi Kwarteng’s “mini-budget” speech last week that sparked a market meltdown.
The currency’s value plummeted after the new government announced its economic proposals on Friday.
It has caused the borrowing costs that the government has to pay to reach record highs and has led to massive instability in the bond market.
Liz Truss and Kwasi Kwarteng last week signed plans to borrow billions of pounds to fund a range of tax cuts, including for the wealthiest in society.
They argue it will boost growth, but with inflation rates rising and the global economy grim, investors fear the government has written a check it can’t cash.
Sterling’s value against the dollar hit an all-time low on Monday and falling confidence in the UK economy has prompted major investors to exit.
Sir Keir announced at the Labor Party conference yesterday that he had plans to set up a new public energy company called Great British Energy.
Speaking at his party conference, Sir Keir said GB Energy would cut bills and ensure energy independence after being introduced in the first year of a Labor government.
The party leader said the company would “bring British power to the British people”.
Targeting the energy record of his Conservative rivals, Sir Keir argued that the war in Ukraine was not to blame for the Tories having left the UK unprepared for rising energy bills.
The Labor Party also faced turmoil yesterday after MP Rupa Huq was suspended over her comments calling Kwasi Kwarteng “superficially” black.
Her comments at the conference were branded as clearly “racist” by Sir Keir today.
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https://metro.co.uk/2022/09/28/keir-demands-recall-of-parliament-and-axing-of-budget-before-more-damage-is-done-17466989/ Keir calls for Parliament to be dismissed and budget scrapped 'before more damage is done'