He told MPs the "alleged assailant was shot by armed police" following a "serious" incident.
Staff inside Parliament were told to stay inside their offices.
The BBC's Laura Kuenssberg said police told her someone had been shot and MPs said they heard "three or four gunshots".
Tom Peck, the political editor of the Independent, tweeted: "There was a loud bang. Screams. Commotion. Then the sound of gunshots. Armed police everywhere."
Scotland Yard said it was called to a firearms incident on Westminster Bridge amid reports of several people injured.
Transport for London said Westminster underground station has been shut at the police's request.
TV images have emerged of a car crashed into a fence outside the Parliament building.
The incident occurred as parliament was in session, and proceedings in the House of Commons were suspended.
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