Rachel Reeves says budget 'non-negotiable' on China trip - as former PM says she's been 'rumbled' by market turmoil

10 January 2025, 17:09 | Updated: 11 January 2025, 14:51

The chancellor has said the budget is "non-negotiable" on a visit to China in the face of volatile markets back in the UK.

Rachel Reeves flew out on Friday after ignoring calls from opposition parties to cancel the long-planned trip because of economic turmoil at home.

The past week has seen a drop in the pound and an increase in government borrowing costs, which has fuelled speculation of more spending cuts or tax rises.

The Tories have accused the chancellor of having "fled to China" rather than explain how she will fix the UK's flatlining economy, while the Liberal Democrats say she should stay in Britain and announce a "plan B" to address market volatility.

Former prime minister Boris Johnson said Ms Reeves had "been rumbled" and said she should "make her way to HR and collect her P45 - or stay in China".

However, during a visit to Beijing's flagship store of UK bike maker Brompton, Ms Reeves said she would not alter her economic plans, with the October budget designed to return the UK to economic stability.

"Growth is the number one mission of this government," she said.

"The fiscal rules laid out in the budget are non-negotiable. Economic stability is the bedrock for economic growth and prosperity."

The treasury added that making Britain better off will be at the "forefront of the chancellor's mind" during her visit.

She said that "action" will be taken to meet the fiscal rules. That action is reported to include deeper spending cuts than the 5% efficiency savings already expected to be announced later this year, while cuts to the welfare bill are also said to be under consideration.