RACHEL Reeves has been accused of making Britain a laughingstock after she left for China hat-in-hand, but has only a flimsy investment deal to show for it.
The chancellor defied calls to stay home and take control of the market meltdown to fly to Beijing to announce a new economic pact.
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Rachel Reeves has been accused of making Britain a ‘mockery’ after she left for communist ChinaCredit: EPA
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The chancellor, with the Chinese vice-premier He Lifeng, returned with a ‘miserable’ investment agreementCredit: Getty
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Rachel Reeves at the Beijing store of British bicycle manufacturer BromptonCredit: AP
She described her visit as a “significant turning point” in relations between Britain and communist China – and said it would help our struggling economy.
But Tory MPs and business chiefs derided it after she announced just £600m of investment from China over five years.
Former Conservative Party leader Sir Iain Duncan Smith said: “We are the laughing stock of the Western world.
“Europe is getting tough on China, and America is going to get tough on China, so we’re going to be the odd one out.”
Shadow financial secretary Gareth Davies said: “She flew halfway around the world and came back with almost nothing to show for it.”
Ms Reeves also faced ridicule for visiting the Beijing store of British bike maker Brompton – which has imposed a hiring freeze over her tax hike.
Will Butler-Adams, boss of Brompton Bicycles, saw his company’s profits drop by 99 per cent last year.
He said: “From a business perspective, there are a whole range of policies, not just National Insurance, London Living Wage, which will cost us around £550,000 in the coming year.”
Announcing the deal at a busy news conference in China, Ms Reeves said it ushered in a new era of “pragmatic cooperation in action”.
She added of the agreed measures: “They represent common ground found in areas such as financial services, trade, investment and climate.
Hypocrite Reeves should be SACKED over budget mess – she has to cancel trip to China to fix it, Tory boss slams
“They support safe and resilient growth that is mutually beneficial for both the UK and China, while safeguarding national security.”
But Communist officials abruptly ended the press conference without any questions about the state of the UK market.
A leading city councilor said of the deal yesterday: “There is an air of desperation about it. I’m amazed they think £600m over five years is a good thing.”
He said that major international investors are scared and are not investing in Britain.
Ms Reeves, who met Chinese Vice Premier He Lifeng, is under huge political pressure amid warnings that the UK could be hurtling towards a 1970s-style stagflation crisis.
The value of the pound fell as the price of British debt – known as gilt markets – surged due to falling confidence in UK plc.
Mortgage rates are expected to remain higher for longer as the Bank of England is forecast to make just one rate cut in 2025 amid a bleak economic picture.
Furious Tory politicians have turned on Ms Reeves over the market crash.
They blamed her £40bn tax-grabbing budget for draining that money from market and investor confidence.
Shadow chancellor Mel Stride fumed during her visit: “The chancellor’s place should be to fix this mess of her own making [back home]. She should get on a jet and come back to the UK.”
Ms Reeves’ deal marks the biggest thaw in relations with China since David Cameron was prime minister.
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Source: HIS Education