The UK Prime Minister is refusing to do a U-turn on a $NZ86 billion package of unfunded tax cuts aimed at the wealthy.
Liz Truss has fronted a series of media interviews for the first time since the announcement. Her comments appear to have done little to reassure the tailspinning markets.
Government bond yields are rising, despite the Bank of England's urgent intervention, whilst stocks and the pound have tumbled again.
In a new poll out this morning, the opposition Labour Party surged to a 33 point lead, with 54 percent to 21 percent.
The Labour Leader Kier Starmer has called for Parliament to be recalled so MPs can abandon last week's mini-budget.
A former governor of the UK Central Bank, Mark Carney, is accusing the Truss government of undermining the bank.
UK correspondent Olly Barratt spoke to Morning Report.
