Rishi Sunak has claimed to have "strengthened the economy" after just four weeks in No10 - as Brits face a recession and a historic fall in living standards.
Mr Sunak's bold claim came as he clashed with Keir Starmer over the state of the economy at the weekly session of Prime Minister's Questions.
The Labour leader highlighted OECD forecasts released on Tuesday suggesting the UK faces the lowest growth of any G7 nation over the next two years.
Last week the Office for Budget Responsibility (OBR) also forecast the economy to shrink next year while warning Brits also face the biggest fall in living standards since records began in 1956.
In an attempt to defend the Tories' record, Mr Sunak said: "In four weeks, I have strengthened the economy, we have put more money into the NHS and schools, we have delivered a deal to tackle illegal migration."
But the Labour leader said the Conservatives had "crashed the economy" during ex-Prime Minister Liz Truss's disastrous mini-Budget.
Mr Starmer added: "He won't say why Britain is set to be first into a recession and the last out, so I will.
"Twelve years of Tory failure followed by 12 weeks of Tory chaos.
"For a decade they've let our economy drift aimlessly before suddenly cutting the parachute ropes and slamming it to the ground."
The Prime Minister replied claiming the Labour Party is "peddling fairy tales and gesture politics".
Mr Starmer also said some oil and gas firms "haven't paid a penny in windfall tax" due to loopholes in the levy.
Referencing a stunt by comedian Joe Lycett, Sir Keir added: "You may have seen this week that somebody shredded £10,000 in protest at those propping up an oil and gas giant.
"But he shreds £10,000 every other minute propping them up. Which does he think is the more absurd?"
Mr Sunak replied: "This is the Government that has actually put in place an economic plan that will deliver confidence and stability to our economy.
"All I have heard from him today, there is no answers, there is no substance, because there is no plan.
"He talks about the NHS, we are delivering record funding for the NHS, but we can only do that on the foundations of a strong economy, you can't deliver for the NHS unless you have a plan for the economy, and he doesn't have either."
