The Richmond Park MP has called on the Government to recall Parliament to fix Kwasi Kwarteng's 'shambolic' budget.

The call came as the pound plummeted to a record low against the dollar, with the collapse in market confidence expected to lead to worsening inflation and spiking interest rates.

Sarah Olney MP, who speaks for the Lib-Dems in Parliament on Treasury issues, said people in South West London are set to face a hammer blow.

The Liberal Democrats are calling for Parliament to be recalled so that urgent action can be taken to address what they describe as an unfolding economic disaster.

They are advocating a windfall tax on oil and gas giants to help people and businesses with their bills, plus a reversal of tax changes that benefit banks and corporations in favour of new investment in local health services.

The MP said: "Last week the Chancellor announced a shambolic budget that gave huge unfunded tax cuts to big banks and the wealthiest while leaving struggling families and pensioners in out in the cold.

"Because of their budget we are seeing the pound plummet as the markets give the Conservatives a damning vote of no confidence.

"The Government must urgently recall Parliament so Kwasi Kwarteng can update this failed budget, before it does any more damage to our economy and people's livelihoods.

"It's clear the Conservatives are totally out of touch and don't have a proper plan to steer the economy through the difficult months ahead."

Twickenham MP, Munira Wilson, said: "The country – not to mention the plummeting pound - is still reeling from the Government's shambolic budget.

"We must recall Parliament now so MPs can address the unfolding economic disaster."

Chancellor Kwasi Kwarteng argues the government's new growth strategy will boost the national income, so providing the tax returns needed to fund public services. Ministers argue that moves to cap energy prices will help millions this winter and bring down inflation.