Liz Truss will face MPs for the first time since Chancellor Kwasi Kwarteng’s mini-budget unleashed chaos in the financial markets.
MPs have returned to Westminster following the break for party conferences, with the Prime Minister making her first PMQs appearance since the mini-budget was unveiled.
The Tories are reported to be in a restive mood following the break, with their ratings tanking in opinion polls and economists questioning whether Mr Kwarteng’s plans are sustainable.
There was further turmoil on Tuesday after the Bank of England announced that its emergency support operation to protect pension funds would end this week.
Earlier, the Bank intervened for the second time in as many days to buy up Government bonds, warning of a “material risk to UK financial stability” with “fire sales” of assets if did not act.
But speaking in Washington, the Bank Governor Andrew Bailey said there could be no further support beyond Friday and it was up to the funds concerned to rebalance their holdings.
“My message to the funds involved – you’ve got three days left now. You have got to get this done,” he said.
His comments saw sterling fall back again against the dollar.
Meanwhile, Mr Kwarteng had to endure a further dose of criticism from the International Monetary Fund (IMF) which warned his package of unfunded tax cuts was making it harder for the Bank to get soaring inflation rates under control.
With the Institute for Fiscal Studies warning he will have to find £60 billion in public spending cuts if he persists with his tax plans, Tory MPs fear the Government’s reputation on the economy is suffering grievous damage among voters and markets alike.
After ministers refused to commit to uprating benefits in line with earnings – as Rishi Sunak had promised when he was chancellor – there are concerns also among Conservatives that it is the least well off who will end up paying the highest price.
What time does PMQs start today?
Prime Minister's questions will start at its usual time of 12pm and is expected to run for around half an hour.
How to watch PMQs today
You can livestream the questions faced by the Prime Minister on usual channels.
BBC Parliament will be streaming PMQs via BBC iPlayer while Sky News will also be providing live coverage on Youtube.
You will also be able to watch along at Parliament Live TV.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here