Rachel Reeves has opened the door to emergency spending cuts as No 10 refused to rule out the possibility of an emergency budget in the spring.
Facing a grilling from MPs in the Commons on Tuesday over the rising cost of government borrowing and the recent falls in the value of the pound, Ms Reeves said there was a need to go “further and faster” in search of economic growth.
She declined to rule out future spending cuts, saying she would not write “five years of budgets in the first six months of a Labour government”, before doubling down on a commitment to stick to the governments’ fiscal rules. The rules require day-to-day spending to be met from revenues rather than further borrowing.
In addition, Downing Street refused to rule out an emergency budget in the spring.
It comes as the fresh inflation figures are due this morning. UK inflation is set to have stayed the same in December as economists anticipate a “temporary reprieve” before price rises pick up pace this year.
Meanwhile, Tulip Siddiq has resigned as a Treasury minister amid a Bangladesh anti-corruption probe in relation to properties allegedly linked to her aunt’s former regime.
Key Points
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Tulip Siddiq resigns as anti-corruption minister
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Chancellor Rachel Reeves addresses parliament in bid to ease economic turmoil
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John McDonnell warns spending cuts would be ‘politically suicidal’
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Pound regains footing as gilt yields show signs of stabilising
Breaking: Inflation fell to 2.5 per cent in December
07:05 , Alexander Butler
Inflation fell to 2.5 per cent in December, in a boost for chancellor Rachel Reeves.
In November, the Consumer Prices Index (CPI) came in at 2.6 per cent, where petrol, train travel, and live entertainment pushed up prices.
The figure is still above the Bank of England’s 2 per cent target, which means that the central bank is less likely to want to rapidly bring down interest rates, meaning higher costs for borrowers but better rates for savers.
Read the full story here:
Inflation falls to 2.5% in boost for Reeves’s plans
Tulip Siddiq resigns as minister amid Bangladesh corruption probes
07:03 , Tom Watling
Tulip Siddiq resigns as government minister amid Bangladesh corruption probes
Reform UK just one point behind Labour in damning new poll for Starmer
06:01 , Tom Watling
Farage’s Reform just one point behind Labour in damning new YouGov poll for Starmer
Tulip Siddiq’s resignation letter in full as Treasury minister resigns
05:05 , Tom Watling
Tulip Siddiq’s resignation letter in full as Treasury minister resigns
Mauritius PM orders cabinet meeting as Starmer rushes to sign Chagos
03:33 , Tom Watling
Mauritius PM orders special cabinet meeting as Starmer rushes to sign Chagos deal
More spending cuts ‘political suicide’ for Reeves, McDonnell warns
02:06 , Tom Watling
Reeves committing ‘political suicide’ if she orders spending cuts, warns McDonnell
Tory housing spokesman has shares in company opposed to renters reform
01:04 , Tom Watling
Tory housing spokesman holds shares in a company which opposed Renters Reform Bill
15,000 renters could lose homes before no fault eviction ban in force
00:03 , Tom Watling
15,000 renters could lose homes before no fault eviction ban comes into force
Watch: Rachel Reeves addresses China trip amid market turmoil
Tuesday 14 January 2025 23:02 , Tom Watling
Watch: Rachel Reeves addresses controversial China trip amid market turmoil
Media portrayal of social tenants blamed for prejudice and humiliation
Tuesday 14 January 2025 22:02 , Tom Watling
Media portrayal of social housing tenants blamed for prejudice and humiliation
‘Millions’ in taxpayer money paid to cyber criminals in recent years – minister
Tuesday 14 January 2025 21:02 , Tom Watling
‘Millions’ in taxpayer money paid to cyber criminals in recent years – minister
Reeves denies economic turbulence is a ‘crisis made in Downing Street’
Tuesday 14 January 2025 20:04 , Tom Watling
Reeves rejects claims economic turbulence is a ‘crisis made in Downing Street’
Mauritius PM orders special cabinet meeting as Starmer rushes to sign Chagos deal
Tuesday 14 January 2025 19:01 , Tom Watling
The prime minister of Mauritius has ordered a special cabinet meeting as Keir Starmer’s controversial deal on relinquishing control of the Chagos Islands nears completion.
A race appears to be on to have a deal signed before Monday when Donald Trump is sworn in as the 47th president of the United States.
The president-elect has made it clear that he does not agree with the Biden administration over the handover of the British Indian Ocean colony and would seek to block or veto it once he is in office.
Reports from Mauritius suggest that the deal “is almost done”, although one senior government source there told The Independent that he was “startled” by suggestions it was to be signed in the next few days.
However, another source in the Mauritian government told The Daily Telegraph: “We intend to agree before January 20.”
David Maddox and Millie Cooke have the full report:
Mauritius PM orders special cabinet meeting as Starmer rushes to sign Chagos deal
Starmer says ‘door remains open’ for Tulip Siddiq
Tuesday 14 January 2025 18:21 , Andy Gregory
Sir Keir Starmer said the “door remains open” for Tulip Siddiq in his letter accepting her resignation as Treasury minister.
The prime minister said: “Thank you for your letter. It is with sadness I accept your resignation from your ministerial role.
“I want to thank you for your commitment during your time as Economic Secretary to the Treasury including spearheading the rollout of banking hubs and opening our 100th site, leading our thinking on financial inclusion, and contributing to the success of the Chancellor’s first Mansion House speech.
“In accepting your resignation, I also wish to be clear that Sir Laurie Magnus as independent adviser has assured me he found no breach of the Ministerial Code and no evidence of financial improprieties on your part. I want to thank you for self-referring to the independent adviser and for your full co-operation with the establishment of facts.
“I appreciate that to end ongoing distraction from delivering our agenda to change Britain, you have made a difficult decision and want to be clear that the door remains open for you going forward.”
Badenoch accuses Starmer of ‘dither and delay’ after Siddiq resignation
Tuesday 14 January 2025 17:55 , Andy Gregory
Sir Keir Starmer “dithered and delayed to protect” former economic secretary to the Treasury Tulip Siddiq, Kemi Badenoch has said.
The Conservative leader wrote in a post on X: “It was clear at the weekend that the anti-corruption minister’s position was completely untenable. Yet Keir Starmer dithered and delayed to protect his close friend.
“Even now, as Bangladesh files a criminal case against Tulip Siddiq, he expresses ‘sadness’ at her inevitable resignation. Weak leadership from a weak Prime Minister.”
Badenoch slams Starmer over ‘delayed’ sacking of Siddiq
Tuesday 14 January 2025 17:42 , Tom Watling
Prime Minister Sir Keir Starmer “dithered and delayed to protect” former economic secretary to the Treasury Tulip Siddiq, who has resigned, Kemi Badenoch has said.
The Conservative leader wrote in a post on X, formerly Twitter: “It was clear at the weekend that the anti-corruption minister’s position was completely untenable. Yet Keir Starmer dithered and delayed to protect his close friend.
“Even now, as Bangladesh files a criminal case against Tulip Siddiq, he expresses ‘sadness’ at her inevitable resignation.
“Weak leadership from a weak Prime Minister.”
Starmer makes two new ministerial appointments as Tulip Siddiq resigns
Tuesday 14 January 2025 17:29 , Andy Gregory
Sir Keir Starmer has appointed Emma Reynolds as economic secretary to the Treasury, after Tulip Siddiq resigned the position.
Reynolds, aged 47, currently represents the Wycombe constituency in southern England, and previously served as a politician for a different seat in central England between 2010 and 2019.
Former Resolution Foundation think-tank boss Torsten Bell has also been appointed as a parliamentary secretary in the Treasury.
Lib Dems say voters ‘expected better’ from a Labour government
Tuesday 14 January 2025 17:12 , Andy Gregory
Voters “expected better” from a Labour government, the Liberal Democrats’ Cabinet Office spokesperson said in reaction to Tulip Siddiq’s resignation.
Sarah Olney said: “It’s right Tulip Siddiq resigned, you can’t have an anti-corruption minister mired in a corruption scandal.
“After years of Conservative sleaze and scandal, people rightly expected better from this Government.”
‘Regrettable’ Tulip Siddiq was ‘not more alert to potential reputational risks’, watchdog says
Tuesday 14 January 2025 16:51 , Andy Gregory
It was “regrettable” that Tulip Siddiq “was not more alert to the potential reputational risks” of her close family’s association with Bangladesh, the independent adviser on ministerial standards has said.
Sir Laurie Magnus wrote in his letter to the prime minister: “Given the nature of Ms Siddiq’s ministerial responsibilities, which include the promotion of the UK financial services sector and the inherent probity of its regulatory framework as a core component of the UK economy and its growth, it is regrettable that she was not more alert to the potential reputational risks – both to her and the government – arising from her close family’s association with Bangladesh.
“I would not advise that this shortcoming should be taken as a breach of the Ministerial Code, but you will want to consider her ongoing responsibilities in the light of this.”
Sir Laurie said her association with “one of the principal families involved in Bangladesh politics” had “exposed her to allegations of misconduct by association”.
He said the former Treasury minister “was unaware of the origins of her ownership of her flat in Kings Cross, despite having signed a Land Registry transfer form, relating to the gift at the time,” adding: “Ms Siddiq remained under the impression that her parents had given the flat to her, having purchased it from the previous owner.”
Turning to a visit to Moscow, Russia, in 2013, including her attendance at the signing ceremony for a nuclear power plant, Sir Laurie said: “Ms Siddiq is clear that she had no involvement in any inter-governmental discussions between Bangladesh and Russia or any form of official role. I accept this at face value, but should note that this visit may form part of investigations in Bangladesh.”
Watchdog investigating Tulip Siddiq ‘finds no evidence of improprieties’
Tuesday 14 January 2025 16:50 , Andy Gregory
Sir Laurie Magnus, the independent adviser on ministerial standards, has “not identified evidence of improprieties” connected with Tulip Siddiq.
In a letter to the prime minister, Sir Laurie said: “A lack of records and lapse of time has meant that, unfortunately, I have not been able to obtain comprehensive comfort in relation to all the UK property-related matters referred to in the media.
“However, I have not identified evidence of improprieties connected with the actions taken by Ms Siddiq and/or her husband in relation to their ownership or occupation of the London properties that have been the subject of press attention.
“Similarly, I have found no suggestion of any unusual financial arrangements relating to Ms Siddiq’s ownership or occupation of the properties in question involving the Awami League (or its affiliated organisations) or the state of Bangladesh.
“In addition, I have found no evidence to suggest that Ms Siddiq’s and/or her husband’s financial assets, as disclosed to me, derive from anything other than legitimate means.”
Labour Party flyers found in residence of deposed Bangladeshi PM
Tuesday 14 January 2025 16:43 , Andy Gregory
On Monday, it emerged that Labour Party posters and political flyers for Trulip Siddiq were found in the ruins of the ransacked official residence of the deposed Bangladeshi prime minister Sheikh Hasina, who is Ms Siddiq’s aunt.
The property, located in Dakha, Bangladesh, also contained Chanel and Swarovski bags, a certificate for a diamond and a $1,500 gold-trimmed Montblanc pen, The Times reported.
Tulip Siddiq had faced calls to resign prior to stepping down
Tuesday 14 January 2025 16:41 , Andy Gregory
There had been growing calls for Sir Keir Starmer to sack Tulip Siddiq, with Conservative leader Kemi Badenoch saying: “He appointed his personal friend as anti-corruption minister and she is accused herself of corruption.
“Now the government of Bangladesh is raising serious concerns about her links to the regime of Sheikh Hasina.”
Read Tulip Siddiq’s resignation letter in full
Tuesday 14 January 2025 16:36 , Andy Gregory
Treasury minister Tulip Siddiq has resigned from her post in Sir Keir Starmer’s government, after referring herself to the independent adviser on ministers’ interests.
Here is her resignation letter in full:
Tulip Siddiq’s resignation letter in full as Treasury minister resigns
Tulip Siddiq says standards watchdog found no breach of ministerial code
Tuesday 14 January 2025 16:34 , Andy Gregory
Tulip Siddiq has said that parliament’s standards watchdog Sir Laurie Magnus found that she did not breach the ministerial code, as she tendered her resignation as Sir Keir Starmer’s City minister.
In her resignation letter to the Prime Minister, in full below, Treasury minister Tulip Siddiq thanked Sir Keir Starmer for the “confidence” he has shown her but said her continuing in post “is likely to be a distraction”.
She said: “Having conducted an in-depth review of the matter at my request, Sir Laurie has confirmed that I have not breached the Ministerial Code. As he notes, there is no evidence to suggest that I have acted improperly in relation to the properties I have owned or lived in.
“My family connections are a matter of public record, and when I became a minister I provided the full details of my relationships and private interests to the Government.
“However it is clear that continuing in my role as Economic Secretary to the Treasury is likely to be a distraction from the work of Government. My loyalty is and always will be to this Labour Government and the programme of national renewal and transformation it has embarked upon. I have therefore decided to resign from my ministerial position.”
Breaking: UK anti-corruption minister resigns amid Bangladesh probes
Tuesday 14 January 2025 16:25 , Andy Gregory
Tulip Siddiq has resigned as City minister after finding herself at the centre of a Bangladesh anti-corruption probe in relation to properties allegedly linked to her aunt’s former regime.
The Labour minister tendered her resignation to Keir Starmer saying her position had become a distraction.
She is the second minister to go in six months, after former transport secretary Louise Haigh.
The Treasury minister, who is responsible for tackling financial crime, is being investigated by standards watchdog Sir Laurie Magnus after reports that Ms Siddiq lived in properties in London linked to allies of the deposed prime minister.
Ms Siddiq referred herself to Sir Laurie on Monday last week. In a letter asking for an investigation to be opened, she maintained she had done nothing wrong.
Kate Devlin and Millie Cooke have more details in this breaking report:
Tulip Siddiq resigns as government minister amid Bangladesh corruption probes
Protesters outside No 10 as Starmer greets Iraqi PM
Tuesday 14 January 2025 16:09 , Andy Gregory
Protesters could be heard shouting outside the gates of Downing Street as Sir Keir Starmer welcomed the prime minister of Iraq to No 10.
One could be heard to shout “are you gambling with our lives?” while others chanted.
Inside No 10, Sir Keir told his counterpart Mohammed Shia’ Al Sudani it was a privilege to welcome him and that he hoped it would be the first of many visits.
Kemi Badenoch doubles down after Islamophobia accusations
Tuesday 14 January 2025 16:01 , Andy Gregory
Tory leader Kemi Badenoch has hit back after criticism of her claims that “peasants” from “sub-communities” in foreign countries were to blame for the grooming gangs crisis.
No 10 said the prime minister would not have used the same language, while Green Party co-leader Carla Denyer accused the Tory leader of Islamophobia.
But Ms Badenoch wrote on X: “Interesting to see the Prime Minister’s spokesman weighing in to defend the groomers and rapists against tough language. If some of these people had spent less time worrying about causing offence and more time focused on protecting the vulnerable we’d be in a better place.”
Sir Keir Starmer was praised in a crossparty home affairs committee report in 2013 for his work as director of public prosecutions to improve the processes for bringing such cases to justice.
The report said: “Mr Starmer has striven to improve the treatment of victims of sexual assault within the criminal justice system throughout his term as Director of Public Prosecution (DPP).”
Badenoch accused of Islamophobia after blaming ‘peasants’ from ‘sub-communities’ for grooming gangs abuse
Tuesday 14 January 2025 15:42 , Andy Gregory
Kemi Badenoch has been accused of Islamophobia after blaming “peasants” from “sub-communities” in foreign countries for the grooming gangs crisis.
“These comments are shockingly offensive and irresponsible,” Green Party co-leader Carla Denyer told The Independent. “Kemi Badenoch is the leader of the opposition – she should know better than to peddle this backwards Islamophobia which only leads to division and hatred in our communities, and drives support for the far right.”
She added: “I hope to see senior Conservatives distancing themselves from Badenoch’s comments this morning – as politicians we all have a responsibility to our communities to stop a dangerous race to the bottom in how we speak about these issues.”
Jessica Coates and Millie Cooke have the full report:
Badenoch accused of Islamophobia after blaming ‘peasants’ for grooming gangs abuse
Chancellor ‘leaving no stone unturned’ to secure economic growth
Tuesday 14 January 2025 15:18 , Andy Gregory
The chancellor insisted she was leaving “no stone unturned” to secure growth and improving living standards, after returning from her visit to China.
Rachel Reeves said it was impossible to grow the economy quickly after 14 years of Conservative Government, in response to a question in the Commons from Reform UK’s Richard Tice.
She said: “Growth is the number one mission of this Labour Government. But the truth is it is not possible to turn things around quickly after 14 years of lacklustre growth and declining living standards from the party opposite.
“But we are leaving no stone unturned, which is why last week in China we secured £600m worth of tangible benefits for the UK economy, helping great British businesses exporting overseas.”
Watch: Rachel Reeves defends trip to China amid market turmoil
Tuesday 14 January 2025 14:59 , Andy Gregory
Tory shadow housing secretary holds shares in a company which opposed Renters Reform Bill
Tuesday 14 January 2025 14:42 , Andy Gregory
Questions have been raised over whether the Conservative Party’s shadow housing secretary can take part in Tuesday’s Renters Reform Bill debate because he has a financial interest in the issue.
Kevin Hollinrake, who shadows Angela Rayner in her departmental role, is set to lead the Tory charge against the legislation.
But the Tory MP holds shares in an estate agency franchising group that lobbied regulators and government bodies on “regulatory reforms including the [Conservative Government’s] Renters Reform Bill”, while outlining the risk to the company’s business of “an ever-growing list of regulations”.
The House of Commons register of financial interests shows that Mr Hollinrake, the MP for Thirsk and Malton, has shareholdings valued at more than £70,000 in the Property Franchise Group plc.
Our political editor David Maddox reports:
Tory housing spokesman holds shares in a company which opposed Renters Reform Bill
Rachel Reeves says she is working closely with Bank of England
Tuesday 14 January 2025 14:18 , Andy Gregory
Rachel Reeves has said that the government worked closely with the Bank of England to ensure the country’s economy remains competitive.
Asked by Tory MP Sir Gavin Williamson whether she had spoken to Bank of England governor Andrew Bailey about what actions to take to improve financial stability, Ms Reeves said the pair spoke regularly:
“Indeed, he was on the delegation to China with me this weekend, and we work closely together to ensure that the British economy remains competitive in global markets,” the chancellor told MPs.
Chancellor tells MPs blaming her for market turmoil to ‘get real’
Tuesday 14 January 2025 14:08 , Andy Gregory
Chancellor Rachel Reeves told MPs to “get real” if they were blaming the government for global volatility in markets that has saw the cost of borrowing rise last week.
The chancellor was asked by Conservative MP Dr Luke Evans what she would say to financial markets to reassure them, as he suggested that the “fundamental issue” behind the recent turmoil was that “the markets don’t believe her plan for growth”.
She said: “There’s been a global volatility in markets. I don’t believe it reasonable to suggest that the reason why bond yields in the United States, in Germany and France have risen is because of decisions made by this government. I think the honourable member opposite should just get real.”
Tory MP asks whether China told chancellor that she was ‘doing a good job running UK economy’
Tuesday 14 January 2025 14:05 , Andy Gregory
In a somewhat bizarre intervention, Tory MP Esther McVey asked Rachel Reeves: “Did the Communist Party of China tell the chancellor she was doing a good job running the UK economy or a bad job running the UK economy when she was there?”
Ms Reeves replied: “I wasn’t seeking assurance from any foreign government of the performance of this government.”
Rachel Reeves refuses to rule out spending cuts
Tuesday 14 January 2025 14:01 , Andy Gregory
Chancellor Rachel Reeves has refused to rule out future spending cuts when pressed to do by SNP Westminster leader Stephen Flynn.
Ms Reeves told MPs: “I’m not going to write five years worth of budgets in the first six months of a Labour Government.
“But I’m absolutely committed to meeting the fiscal rules that I set out in the budget in October, because we know what happens when governments lose control of the public finances, and that is they crash the economy, and end up on that side of the House.”
Concerns raised over import of goods created using ‘slave labour from China’
Tuesday 14 January 2025 13:59 , Andy Gregory
Conservative former leader Sir Iain Duncan Smith asked whether the government will allow import of goods “that contain any slave labour” from China.
Sir Iain, who is one of a number of MPs sanctioned by China, told the Commons: “The reality I want to put to her is that while she was away, [clothing company] Shein refused, point blank in a select committee to answer the question whether they had slave labour in their supply chains, but the Government wants them to register here in London.”
He added: “So can I ask the chancellor to be clear now to the House about the government’s position on slave labour?
“Can she explain whether this government will allow any products or services or companies to align themselves here or import goods into here that contain any slave labour, no matter how important that import is?”
Chancellor Rachel Reeves replied: “This government is committed to working with international partners and businesses to ensure that global supply chains are free from human and labour rights abuses.
“As [Sir Iain] knows, under Section 54 of the Modern Slavery Act 2015, commercial businesses who operate in the UK and have a turnover of more than £36m are required to report annually on the steps they have taken, and quite right so because modern slavery is absolutely abhorrent and this government continues to take steps to deal with it.”
Budget has not worked, warn Lib Dems
Tuesday 14 January 2025 13:53 , Andy Gregory
Liberal Democrat Treasury spokesperson Daisy Cooper told MPs: “Let’s be blunt, the budget hasn’t worked. The Chancellor says that the government’s number-one mission is growth but to date there are no signs that the government is going to deliver it.”
Ms Cooper described a rise to employer national insurance contributions as “self-defeating – it undermines growth, it does not unleash it, and it piles pressure onto struggling small businesses and high streets”.
She told MPs there was now a “much-lauded visit to China, but the government itself said it is only worth £600 million to the UK over the next five years”, adding: “This really is small beer.”
Chancellor reiterates vow to stick to fiscal rules
Tuesday 14 January 2025 13:52 , Andy Gregory
Chancellor Rachel Reeves has vowed to stick to her previously stated fiscal rules, as the rising cost of government borrowing threatens to eviscerate the £9bn of headroom left in her autumn Budget.
Labour MP Dame Meg Hillier told the Commons: “Listening to the shadow chancellor [Mel Stride], you would think that the country was going to hell in a handcart.
“And doesn’t she agree with me that there is no time for panic, that it is perfectly possible to manage any pressures on the budget through astute management of public spending? And that compared with the years of austerity on the last side, we are a very, very long way from that approach?”
Ms Reeves replied: “I set out the fiscal rules of this government at the budget in October – that we would pay for day-to-day spending through tax receipts and that we will get debt down as a share of the economy. We remain committed to those fiscal rules and we will meet them at all times.”
Watch live: Rachel Reeves addresses controversial China trip amid market turmoil
Tuesday 14 January 2025 13:49 , Andy Gregory
Watch live as Rachel Reeves answers questions in the House of Commons, after returning from a trip to China criticised by political opponents for coinciding with a week of volatility for the pound and soaring yields on UK bonds:
Watch live: Rachel Reeves addresses controversial China trip amid market turmoil
Rachel Reeves vows to ‘go further and faster’ in plans to boost economic growth
Tuesday 14 January 2025 13:42 , Andy Gregory
Rachel Reeves has vowed to “go further and faster in our plan to kickstart economic growth” in a defiant signal to the markets as she addressed MPs.
The chancellor told MPs: “The economic headwinds that we face are a reminder that we should, indeed we must, go further and faster in our plan to kickstart economic growth that plunged under the last governments.
“By bringing stability to the public finances after years of instability under the party opposite, unlocking investment that plummeted under the previous government, and pushing ahead with the essential reforms to our economy and public services.
“That is my message to the House today. Because, if we get it right, the prize on offer to us, to the British people, is immense – the opportunity to make working people [better] off by making Britain better off. That is the mandate that this government has, and this is what we will deliver.”
Rachel Reeves hits back at Tory criticisms of Labour’s economic plans
Tuesday 14 January 2025 13:38 , Andy Gregory
Chancellor Rachel Reeves has hit back at criticisms by her Tory opposite number Mel Stride, accusing the Conservatives of saying “absolutely nothing about what he would do” to ease the current economic turmoil.
In a reference to questions over Ms Reeves’ future, Mr Stride told MPs: “To go or not to go – that is now a question. The prime minister will be damned if he does, but he will surely be damned if he does not. The British people deserve better.”
But Ms Reeves replied: “The shadow chancellor is simply not serious. I’ve been on that side for 14 years, I think that usually when you have a statement you ask some questions. Now we heard a lot from [Mr Stride] about what he wouldn’t do. But we’ve heard absolutely nothing about what he would do.
“You can now see what happens when the leader of the opposition tells the shadow cabinet that they shouldn’t have any policies, because as far as I can tell the Conservative Party’s economic strategy is to say that the UK should not engage with the second largest economy in the world, or indeed with our nearest neighbours and biggest trading partners in the European Union.”
Tories accuse Labour of ‘losing control of the economy’
Tuesday 14 January 2025 13:31 , Andy Gregory
The Tories have accused Labour of “losing control of the economy” in what shadow chancellor Mel Stride claimed was “a crisis made in Downing Street”.
Mr Stride told MPs: “I know that the chancellor has been away, so let me update her on the mess that she left behind. The pound has hit a 14-month low, government borrowing costs are at a 27-year high, growth has been killed stone dead, inflation is rising, impacting millions, interest rates are staying higher for longer, and business confidence has fallen through the floor.
“The party opposite talked down the economy, they crippled businesses with colossal taxes, breaking all their promises. This is a crisis made in Downing Street.”
He added: “It should hardly surprise the chancellor that international markets are uneasy. The UK’s longterm borrowing costs have risen to their highest in almost 30 years. While the government was losing control of the economy, where was the chancellor?”
Accusing Ms Reeves of “ducking the difficult questions by jetting off to Beijing”, he said: “I believe in Labour circles they are calling it ‘the Peking duck’. Whatever was on the menu in China, was it really worth the unedifying sight of an increasingly desperate politician scampering halfway around the world with a begging bowl?”
