Rachel Reeves faces mounting criticism over her visit to China this week, as concerns grow about the UK economy "flatlining" following a 27-year high in borrowing costs.
The chancellor's trip occurs against a backdrop of market turmoil threatening her economic strategy. Speculation is rife that Reeves may implement deeper spending cuts if necessary. Meanwhile, investors brace for further increases in borrowing costs as the US prepares to release key employment data.
Reports suggest Reeves has instructed ministers to develop alternative growth plans and halt "anti-growth measures" as she aims to improve living standards nationwide.
The long-planned trip to China includes high-ranking UK financial officials, such as the Governor of the Bank of England and the Financial Conduct Authority’s chief executive.
Downing Street maintains that Reeves plans to deliver only one significant fiscal statement annually, dismissing rumors of an emergency "mini-Budget" scheduled for March 26.
This visit makes Reeves the highest-ranking British official to visit Beijing in seven years, signaling a renewed effort to strengthen ties with the world's second-largest economy.
Despite criticism, Treasury minister Darren Jones emphasized the trip's importance for UK trade. However, Shadow Chancellor Mel Stride questioned whether Reeves would resort to tax increases or public service cuts should her fiscal strategy falter.
Crossbench peer Lord Jim O'Neill urged calm, dismissing alarmist rhetoric over borrowing figures and attributing much of the bond market shift to US economic developments. He called for a balanced perspective, noting the dollar's global strength and its ripple effects on financial markets.
Critics from across the political spectrum, including Reform UK deputy leader Richard Tice and Liberal Democrat leader Sir Ed Davey, urged Reeves to cancel the trip and focus on addressing domestic economic challenges.
Reeves' absence in Parliament prompted questions from MPs, with Treasury officials defending her travel as vital for fostering international trade relationships amid ongoing economic uncertainty. Photo by Lauren Hurley / No 10 Downing Street, Wikimedia commons.