Parliament must be recalled urgently to discuss a new Government financial plan, Alliance MP Stephen Farry has said.

The pound has dropped in value after the Government’s tax cut plan sent the UK economy into turmoil, with the IMF criticising the move.

“Last week’s financial statement from the Chancellor is an unmitigated self-inflicted financial and economic disaster,” said the North Down MP.

“The markets have responded negatively and the Bank of England has been forced to respond. The IMF, Moodys and US Treasury have all expressed major concerns. This is already a major financial crisis. The Prime Minister and Chancellor can’t keep hiding forever. Parliament must be recalled, and the Conservatives should abandon their party conference.

“Urgent Government action is required to restore financial sanity, and stabilise the financial system. This financial statement needs to be ripped up and a fresh fiscally credible and fair alternative must be put in place.

“Borrowing levels must be reduced through an enhanced windfall tax on excessive energy profits and a one- off wealth tax introduced. The fundamental inequality and unfairness from tax benefits to most well-off must be reversed.

“The Government can encourage growth through removing trade barriers with the EU, investing in skills and delivering a Green New Deal. By contrast, balancing the books through spending or benefits cuts is the absolutely the wrong thing to do.”