'Complete humiliation for the Prime Minister' – City MP reacts to Chancellor's emergency statement
The actions of the government in reversing many mini-budget measures has been described as a "complete humiliation for the Prime Minister" by Labour's Shadow Chief Secretary to the Treasury.
New Chancellor Jeremy Hunt has issued an emergency statement as he seeks to restore stability following weeks of turmoil on the financial markets.
Mr Hunt confirmed he is ditching many of the measures in the mini-budget, including the planned cut to income tax.
The Chancellor will address MPs in a statement to the House of Commons later in the afternoon.
Reacting to the statement, Pat McFadden, Labour MP for Wolverhampton South East and Shadow Chief Secretary to the Treasury, said: "This has been a complete humiliation for the Prime Minister.
"The platform upon which she fought and won the Conservative leadership election has caused economic chaos for three weeks, repeated interventions on behalf of the Bank of England and driven up mortgage rates.
"The damage has now been done. She is in an impossible position where the survival of the government is dependent on publicly torching everything that she believes.
"Today is a humiliation for her, it's a humiliation for the government and the fear must be that the damage which has been done will leave the country paying a continued Tory instability premium and people paying a Tory premium on their mortgages for some time to come."
He added: "The people who caused the instability, the people who caused the chaos, the people who put ideology before the economic wellbeing of the country cannot be the people to fix this. "Over the weekend we had the former deputy governor of the Bank of England saying in the past the UK had been compared economically to the United States and Germany but internationally is now viewed as being closer to Greece and Italy.
"In addition we had the current governor of the Bank of England saying that interest rates would now have to go up more than was previously expected before the mini budget. "The country will pay a lasting price for putting us through this ideological experiment."
He vowed if there was now a change of government, Labour would restore economic stability, adding: "We cannot make the most vulnerable in the country and people working hard to make ends meet pay the economic price for the Conservative Party's ideological mistakes."
