Chancellor Rachel Reeves is facing mounting pressure to cancel her controversial trip to China as the UK economy endures another turbulent day in the financial markets.
The criticism comes from across the political spectrum, with demands for her immediate attention to the domestic economic crisis.
Shadow Home Secretary Chris Philp blamed Labour for the surge in government borrowing costs, suggesting Reeves “should stay in the UK fixing the mess her Budget has created.” His remarks were echoed by Liberal Democrat leader Ed Davey, who also urged Reeves to cancel her visit.
Davey advocated for an emergency announcement to scrap the proposed national insurance hike, which his party labels a ‘jobs tax,’ and to prioritize rebuilding trade links with Europe.
On Thursday, the pound plummeted to its lowest level against the US dollar in over a year, as borrowing costs continued to soar. This downturn has intensified scrutiny on the government’s economic strategies and spending plans. Treasury Minister Darren Jones attempted to assure MPs that the UK gilt markets were operating “in an orderly way” and dismissed the need for emergency measures.
However, opposition MPs were not convinced. Shadow Chancellor Mel Stride criticized Reeves for being “nowhere to be seen,” while a Conservative MP accused her of having already “fled” to China.
Reeves’ planned trip involves a delegation of financial leaders as part of Labour’s strategy to strengthen economic ties with Beijing. However, her absence during this financial upheaval has sparked widespread criticism.
Chris Philp, who previously served in the Treasury under former Prime Minister Liz Truss, suggested that the Chancellor should be removed from her position. “Bond yields are higher than when Kwasi Kwarteng got sacked,” he stated.
“The whole government should be fired, frankly, including Rachel Reeves, because they jacked up taxes, they crushed pensioners, they’re crushing farmers. They’re crushing businesses with their high taxes. And this is the result, because the bond market can see that our economy is being squashed by this Labour government.”
Chris Philp
Calls for Domestic Focus
Ed Davey further criticized the government, saying the nation is paying an “ever-higher price for the total mess the Conservative Party made of our economy.”
Despite his criticism of the Tories, Davey stressed that Reeves must urgently address the crisis by canceling the “counterproductive jobs tax” and laying out a comprehensive plan for economic growth, including strengthening trade relations with Europe.
In the House of Commons, responding to an urgent question, Darren Jones reiterated the government’s commitment to economic stability and maintaining sound public finances. “There should be no doubt of the Government’s commitment to economic stability and sound public finances; this is why meeting the fiscal rules is non-negotiable,” Jones told MPs.
He accused the previous Conservative administration of “crashing the economy” and defended the China trip as “important” for UK trade, affirming its continuation.
As such, Rachel Reeves faces intensified scrutiny to address the UK’s economic turmoil, with mounting calls for immediate domestic action and a shift in focus from international engagements to national economic recovery.
READ ALSO: Former CPP -GS Calls for Inclusivity, Restoration of Ghana’s History
