Sir Keir Starmer has accused Liz Truss of "ducking responsibility" as he questioned the Prime Minister on her Government's mini-budget.
Speaking during Prime Minister's Questions (PMQs), Mr Starmer asked the PM: "This morning, the Business secretary toured the TV studios arguing that the turmoil in the markets has nothing to do with her budget, does the Prime Minister agree with him?
Before Ms Truss responded by saying: "What we have done, we have taken decisive action to make sure people are not facing energy bills of £6,000 for two years and I think we remember the opposition is only talking about six months.
"We’ve also taken decisive action to make sure we are not facing the highest taxes for 70 years in the face of a global economic slowdown.
Liz Truss and Sir Keir Starmer
GB News
"What we are making sure is that we protect our economy at this very difficult time internationally.
"And as a result of our action we will see higher growth and lower inflation."
To which the Labour leader hit back, saying: "Avoiding the question, ducking responsibility, lost in denial, no wonder investors have no confidence in her Government."
The Labour leader also told MPs about a couple from Wolverhampton who were about to buy their first home but because the “Government’s borrowing spree sent interest rates spiralling”, their mortgage offer was withdrawn.
He asked the Prime Minister if she understands why they are “completely furious with her”.
The Prime Minister replied: “The fact is that when I came into office, people were facing energy bills of up £6,000. The party opposite are shouting, but he is opposing the very package that we brought in, the energy price guarantee. That was the major part of the mini-budget that we announced.
“He has refused to confirm whether or not he backs our energy price guarantee for two years, which protects families, not just this winter, but next winter.
Liz Truss said "as a result of our action we will see higher growth and lower inflation"
Stefan Rousseau
“What we’re seeing is we are seeing interest rates rising globally. We are doing … they are rising globally, in the face of Putin’s appalling war in Ukraine. What we are doing is helping people with lower stamp duty, helping people with their energy costs, reducing inflation with our energy package and keeping taxes low.
“I notice that the honourable gentleman had a Damascene conversion last night when he backed our cuts in national insurance.”
Ms Truss' comments come just a day after the Bank of England announced that its emergency support operation to protect pension funds would end this week.
Earlier, the Bank intervened for the second time in a many days to buy up Government bonds, warning of a “material risk to UK financial stability” with “fire sales” of assets if did not act.
But speaking in Washington, the Bank Governor Andrew Bailey said there could be no further support beyond Friday and it was up to the funds concerned to rebalance their holdings.
“My message to the funds involved – you’ve got three days left now. You have got to get this done,” he said.
His comments saw sterling fall back again against the dollar.
Earlier, the Bank intervened for the second time in a many days to buy up Government bonds, warning of a “material risk to UK financial stability” with “fire sales” of assets if did not act.
While MS Truss also committed to taking action to get rid of no-fault evictions.
Labour MP Graham Stringer (Blackley and Broughton) told the Commons: “Spooking the markets and increasing the cost of borrowing and increasing the cost of mortgages was almost certainly an act of gross incompetence rather than malevolence.
“But going back on the commitment to end no-fault evictions is an act of extreme callousness.
“Can the Prime Minister reassure the 11 million private renters in this country that she will carry out her commitment to get rid of no-fault evictions?”
Ms Truss replied: “I can.”