Reeves shrugs off calls for resignation as she promises growth plan

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Chancellor Rachel Reeves has rejected calls for her to resign, insisting to MPs that her economic plans could deliver an “immeasurable” reward and defending her visit to China last week.

In his first House of Commons appearance since market turmoil hit his economic plans last week, Reeves was accused by his opposite number Mel Stride of being part of a “Shakespearean tragedy”.

Stride said: “To go, not to go, is now a question.” But Reeves, cheered by Labor MPs, said he would give more details of his plans to revive a stagnant economy in the coming weeks.

“If we get it right, the reward on offer to the British public is enormous,” he said. Reeves claimed that recent bond market volatility reflected “global economic uncertainty” affecting UK debt.

Stride claimed Reeves should have stayed in Britain to reassure the market instead of going to China “with a begging bowl”. Reeves said building a business relationship with Beijing is essential.

“Not recruiting is not an option,” he said, although Reeves added that he had raised human rights issues with Chinese leaders and condemned the “totally baseless ban on British MPs”.

The chancellor is under increasing pressure to produce a plan to turn the economy around.

UK borrowing costs hit a 16-year high amid growing investor fears of a default, combining anemic growth and continued price pressures.

UK markets have come under strain amid a global sell-off in government bonds in recent weeks, fueled by fears that US President-elect Donald Trump’s proposed tariffs will be inflationary.

The gilts market was steady after the chancellor’s initial comments, with the 10-year yield flat at 4.88 percent on the day and below last week’s post-financial crisis high of 4.93 percent.

Reeves’ statement comes amid growing unrest among Labor MPs over the chancellor’s handling of the economy, with many deeply unhappy over his decision to end winter fuel payments for 10 million pensioners last year.

Number 10 took the unusual step of announcing on Monday that Starmer expected Reeves to remain in the role until the election, hours after the Prime Minister refused to give such assurances.

A newly elected Labor MP said: “Some people are worried about their seats looking ahead to the election. There’s a danger of Rachel Reeves becoming a lightning rod for what’s going wrong, but I don’t think we’re at that stage yet.”

This is a developing story