PM holds crunch talks with watchdog over fiscal chaos

Pressure grows from Tory MPs as new poll gives Labour record lead

- Pippa Crerar, Peter Walker, Phillip Inman

Liz Truss will hold emergency talks with the head of Britain's independent fiscal watchdog today after failing to dampen panic in the financial markets or shore up support from Tory MPs for her radical economic plan.

In a highly unusual move, Truss will meet Richard Hughes of the Office for Budget Responsibility, with her chancellor, Kwasi Kwarteng, before being given a first draft of its full fiscal forecasts next week.

One government insider said the OBR meeting was "like trying to read the manual after you've broken the thing" after last week's announcement of sweeping tax cuts triggered investor panic over the health of the UK economy, prompting a sharp fall in the value of the pound and driving up government borrowing costs.

The prime minister faces urgent calls from the Treasury select committee to bring forward the government's financial statement, due on 23 November, by at least a month - and to publish growth forecasts as soon as possible to help calm jitters.

The committee's chair, Mel Stride, said there was a path out of the current economic situation for the government, but added: "It's not a very broad path. There is a lot of work to be done. This is a huge challenge."

The Guardian understands Truss will use the meeting to discuss the dramatic economic and fiscal developments since March, the last time the OBR published growth forecasts. Kwarteng will continue liaising with the body over the forecast process before the release of the next figures.