Bank of England takes emergency action to calm market

As the economic storm clouds over the UK darkened further still, the Bank of England today staged a dramatic intervention – saying it will start buying up government debt in an effort to stabilise markets and protect pension funds.

The surging cost of borrowing, sparked last week by the Chancellor’s tax-cutting plans, had earlier drawn a stinging rebuke from the IMF – but the government says it’s sticking to its guns, although departments will be asked to identify ‘spending efficiencies’.

Labour says parliament should be recalled so the prime minister is held to account over the crisis.