The Albany Gazette - UK finance minister, hit by market woes, stands firm on growth

The chancellor of the exchequer, in the role for just over six months following Labour's election win, faced a renewed call to resign by the main opposition Conservative party during a heated exchange in parliament.

The British pound slumped and government borrowing costs soared over the past week as markets reacted to a struggling UK economy -- even if a recent runup in bond rates and renewed inflation concerns are not limited to Britain.

"We have seen global economic uncertainty play out in the last week," Reeves told parliament Tuesday.

"But leadership is not about ducking these challenges, it is about rising to them. The economic headwinds that we face are a reminder that we should -- indeed, we must -- go further and faster in our plan to kickstart economic growth."

The pound fell once more towards a 14-month low against the dollar following her statement, while UK gilts, or bonds, steadied.

Reeves told MPs she is "absolutely committed to meeting the fiscal rules" set out in her maiden budget in October.

By this she referred to her target of meeting day-to-day spending with revenue rather than borrowing.

UK 10-year bond yields, a key indicator of market confidence, reached last week the highest level since the 2008 global financial crisis.

That puts fiscal pressure on the government and could force it to cut spending and further hike taxes.

Reeves' budget included tax rises for businesses -- a decision blamed for Britain struggling to grow its economy in recent months.

"Rachel Reeves is doing a fantastic job. She has my full confidence," Prime Minister Keir Starmer told parliament Monday as he faced a barrage of questions over her future as finance minister.

At the centre of Labour's growth plans is big investment for infrastructure projects, including improvements for the National Health Service, education, transport and house-building.

- China -

Reeves on Tuesday defended her decision to visit China during the market turbulence as a necessary move "to secure tangible benefits for British businesses trading overseas".

At the same time, Reeves said she made it clear to Chinese leaders that while the UK "must co-operate on areas of mutual interest" it will "confidently challenge on areas where we disagree".

The chancellor reported back that she had expressed Britain's "real economic and trade concerns" over imbalances and economic security with China.

Reeves earlier said "common ground" had been found on financial services, trade, investment, climate change and other areas with China.

She said the total value of what had been agreed would be worth £600 million ($730 million) for the British economy over the next five years.

Responding to Reeves' statement, the Conservatives' spokesperson on the economy, Mel Stride, compared the current position of the chancellor to a Shakespearean tragedy.

"To go or not to go. That is now a question," he told parliament.

Labour has seen its public approval rating slump since its landslide election win in July that ended 14 years of Conservative rule on the promise of economic growth.

Starmer is facing calls also to sack his anti-corruption minister Tulip Siddiq after she was named in an investigation in Bangladesh focused on her aunt, the country's ousted leader Sheikh Hasina.

Piling on the pressure, billionaire Elon Musk -- who is set for a role in President-elect Donald Trump's administration -- has used his X platform to launch a barrage of posts assailing Starmer and other Labour party figures.

"Nobody trusts Starmer and for good reason. Investors won't invest without trust. He has created a financial crisis for Britain," Musk wrote last week on the social media platform.

(Y.Harris--TAG)