Rachel Reeves faces claims of ‘fleeing to China’ amid concerns over UK borrowing

London: So, Rachel Reeves is in a bit of hot water. She’s been accused of “fleeing to China” instead of addressing the UK’s struggling economy. Borrowing costs have hit a 27-year high, and folks are not happy.

Mel Stride, the shadow chancellor, and his Conservative pals are really going after her. They’re questioning if she’ll have to raise taxes or cut public services if things keep going south.

Stride claims that people are paying for what he calls “another socialist government” that’s just taxing and spending their way into trouble. He thinks it’s high time for Reeves to change her approach.

Now, it’s worth noting that she had a trip to China planned for this week. But Richard Tice from Reform UK thinks she should just come back home, especially since the pound is looking pretty shaky.

Even Dame Harriett Baldwin, a former Treasury minister, chimed in, asking if the government benches are empty because the Chancellor is off in China, realizing her budget is a disaster.

On the other hand, Treasury minister Darren Jones defended the trip, saying it’s crucial for UK trade and that it will go ahead as planned.

All this drama unfolded in the House of Commons while borrowing costs keep climbing, putting more pressure on Labour’s fiscal plans.

Stride pointed out that it’s a shame the Chancellor is nowhere to be found during such a tough time. He reminded everyone that borrowing costs just hit a 27-year high, and it’s all because of her decisions.

He also mentioned that before the election, Reeves promised to get debt down and not raise taxes, but now the economy is flatlining. Surveys show that business confidence is just gone.

He criticized her for hiking taxes and increasing borrowing by a whopping £32 billion a year, all while adjusting her fiscal rules to make it happen.

With rising debt and stagnant growth, people are understandably worried. Stride pointed out that the premium on UK borrowing compared to German bonds is at its highest since 1990.

He asked if the government might breach its fiscal rules and if that means cuts to public services if Reeves’ fiscal headroom disappears.

In response, Jones insisted that their fiscal rules are non-negotiable. He reiterated that day-to-day spending should be covered by tax receipts and that debt should be decreasing.

He also took a jab at the Tories, saying they’ve failed to boost growth and have just piled up the country’s credit card debt.

Jones explained that financial market movements are influenced by a mix of international and domestic factors, and it’s normal for borrowing costs to fluctuate.

Outside the Commons, Liberal Democrat leader Sir Ed Davey said Reeves should cancel her trip and make an emergency statement. He believes she needs to come back and lay out a real plan for growth.

He argued that the country is paying a high price for the mess the Conservatives made and that a more ambitious plan is needed to rebuild trade with Europe.