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Hypocrite Reeves should be SACKED over the mess her Budget made – she must cancel China trip to fix it, top Tory slams
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RACHEL Reeves must cancel her trip to China to deal with sweeping market panic, the Conservatives have demanded.
The Chancellor was today warned she faces being the next Kwasi Kwarteng - who famously left the country as the economy went into meltdown
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And top Tory Chris Philp says she should also be SACKED, claiming her Budget is to blame for rocketing borrowing costs..
The Shadow Home Secretary has now demanded she stay in the UK to deal with the escalating problem.
He told our Never Mind The Ballots show: “I think the Chancellor should stay in the UK fixing the mess her Budget has created.”
Yields on government bonds are now higher than the aftermath of Liz Truss’s disastrous mini-Budget - a sign markets are worried about the level of Treasury borrowing.
It raises the prospect of Ms Reeves having to either slash spending or hike taxes even further.
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Mr Philp - who served in the Treasury under Ms Truss - accused Labour of hypocrisy and suggested the Chancellor be fired.
He said: “Bond yields are higher than when Kwasi Kwarteng got sacked.
“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.”
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Lib Dem leader Sir Ed Davey piled in: "Instead of jetting off to China, the Chancellor should urgently come before the House of Commons to cancel her counterproductive jobs tax and set out a real plan for growth."
Ms Reeves used her Budget last year to massively increase both spending and taxes, while fiddling her “fiscal rules” allowing herself to borrow more.
Ms Reeves’ trip to Beijing is already controversial given the autocracy’s hostile actions against the West.
Speaking to reporters this morning, Foreign Secretary David Lammy insisted the market turmoil we are seeing is not comparable to what happened under Liz Truss.
He said: " I think it is important to recognise that the environment is one in which the Chancellor of the Exchequer has set out some fiscal rules on investment, on stability, we are meeting those rules two years earlier, I've listened to much of the comment, and I think all of the commentators have recognized that not just in the UK, but also in the United States, there's international volatility in relation to the gilts market.
"The central thing in the UK, particularly in relation to borrowing, is growth in our economy. That's what I set out as a central objective for this department in contributing to that growth, in the growth markets around the world, and working alongside our colleagues in Department of Business and trade, particularly,
to deliver that."
He added: "I don't recognise the desperate instability, the Kamikaze budget, the self-inflicted wounds that we saw during the Liz Truss period, and the caricatures and the deep global concern there was and instability that most of the global community saw in the UK market. "
Labour MP Mike Tapp told the show: “There's no doubt we have to be cautious of the Chinese, but there's no getting away from the fact that they are a growing economy. And of course, we've got to be engaging them in order to deliver for the people here, and that's what's most important.”
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