Reeves: 'Economic headwinds' show need to go 'further and faster' to drive growth

Credit: PA

Rachel Reeves has addressed the turbulent financial markets, insisting "economic headwinds" facing the UK showed the need to go “further and faster” in search of growth.

Speaking in the Commons, the Chancellor told MPs: "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 kick start economic growth that plunged under the last government", she said.

Shadow Chancellor Mel Stride criticised Reeves for going on a trip to China amid the market turmoil, "this is a crisis made in Downing Street", he said. Stride accused Reeves of ducking "difficult questions by jetting off to Beijing".

The Labour front bench laughed at the Shadow Chancellor as he delivered an angry speech, in which he compared Labour's handling of the economy to a "Shakespearean tragedy".

As Stride joked, "to go or not to go, that is the question", Reeves said he was "simply not serious".

Speculation about Reeves' position mounted on Monday after Sir Keir Starmer said he had confidence in her but declined to confirm she would stay in Number 11 until the next general election when asked by journalists at a press conference in east London.

Downing Street later clarified Reeves would remain in her role “for the whole of this Parliament”.

The Chancellor returned from her trip to China on Monday as concerns swirled that the government is in danger of failing to meet its own fiscal rules and will need to take action to remain on track.

Ministers were offered some relief on Tuesday morning as the pound regained its footing after hitting fresh 14-month lows on Monday, while UK Government bonds recovered some lost ground after a recent heavy sell-off.


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Sterling held firm at 1.22 US dollars in morning trading, having sunk to its lowest level since November 2023 in recent days.

Government borrowing costs showed signs of stabilising, with yields on 10-year UK Government bonds – also known as gilts – down three basis points at 4.86%.

The yield on 30-year gilts struck its highest level for 27 years on Monday, and 10-year yields rose to fresh highs not seen since 2008.

Yields are a key indicator of market confidence, moving inversely to bond prices.

They rise when investors are less willing to own the debt, meaning they will pay a lower price for the bonds.


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