The Bank of England took emergency action on Wednesday to avoid a meltdown in the UK pensions sector, unleashing a £65bn bond-buying programme to stem a crisis in government debt markets.

The central bank warned of a "material risk to UK financial stability"(opens a new window) from turmoil in the gilts market sparked by chancellor Kwasi Kwarteng's tax cuts and borrowing plan last week.

In spite of the prolonged market upheaval, City minister Andrew Griffith said the government would stick to its strategy: "We think they're the right plans because those plans make our economy competitive," he said.