'Where is the Chancellor?' Tories accuse Rachel Reeves of HIDING as pound sinks and UK borrowing costs surge

Stride added that it was a "bitter regret" that the Chancellor was "nowhere to be seen" as the premium on UK borrowing costs compared to German bonds reached its highest level since 1990.

The surge in borrowing costs resulted in 30-year gilt yields hitting levels not seen since 1998 and 10-year gilt yields spiking to a post-2008 peak.

The pound has also tumbled against the dollar as a result of market turmoil, falling from a summer high of $1.34 to a 15-month low of $1.23.

Reeves did not appear in the House of Commons to address the Shadow Chancellor's urgent question herself, instead putting up Chief Secretary to the Treasury Darren Jones.

Former Treasury Select Committee Chairwoman Dame Harriett Baldwin piled pressure on the Chancellor by accusing Reeves of having “fled” scrutiny.

Jones refused to comment on whether the Chancellor had already departed for a trade trip to China.

During the fiery exchange, Stride told MPs: “Every pound we spend on debt interest is money we cannot spend on the public’s priorities.

"The Government’s decision to let rip on borrowing means that their own tax rises will end up being swallowed up by the higher borrowing costs at no benefit to the British people.

“Far from this Government laying the foundations for a stronger economy, the Chancellor is squandering the endeavours of millions of hardworking people up and down our country who are now having to pay the price for yet another socialist Government taxing and spending their way into trouble. Does (Jones) not now accept that it is time to change course?”

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Jones insisted that the markets continue to "function in an orderly way", claiming: “He asks me about the fiscal rules - as I said in my statement just now, they are non-negotiable."

He added: “As the Chancellor set out at the budget we have two fiscal rules - one that day-to-day spending should be met by tax receipts and the second that debt should be falling as a size of the economy.”

Jones later took aim at the Tories over the economic legacy of recent Governments, adding: "They could not make the numbers add up. They’ve stacked up the country’s credit card. They’ve left it to this party to deal with, and we are going to deal with it."

The Chief Secretary to the Treasury, who was unable to rule out more borrowing in the future, confirmed that Reeves will address the Commons when the OBR delivers its updated economic and fiscal forecast on March 26.

Jones was also urged to tell the Chancellor to “cancel her ridiculous trip to China” due to the economic turmoil facing Britain.

Reform UK's deputy leader Richard Tice told the Commons that the UK is “heading towards, be under no illusion, a financial crisis".

The Boston & Skegness MP also put pressure on the Chancellor to “cut daft spending, cut wasteful regulations in order that we can create some growth”.

Labour continues to highlight Liz Truss's disastrous mini-Budget as it looks to defend the need to plug a £22billion black hole.

The markets were thrown into turmoil by Truss's measures which looked to introduce a £45billion package of unfunded tax cuts.

However, the former Prime Minister this morning sent a cease and desist letter to Sir Keir Starmer demanding that he stops claiming she crashed the economy.

Truss's lawyers warned the claim is "false and defamatory" and is causing "continuing damage to our client’s reputation", suggesting it even led to her defeat in South West Norfolk.

However, Jones rejected the suggestion that Labour is bringing Britain back to an era of austerity.

He told MPs: "This is not austerity. He will know full well that, what is austerity? Austerity was ideological cuts to public financing and the size of the state. It was minus 3pc cuts, irrespective of what that meant for particular public services or for people across the country.

“That is far from what the Chancellor unveiled in her Budget in the autumn. It was the absolute opposite of austerity, as we increased financing into front line public services, and will continue to do so.”