Rachel Reeves accused of making Britain a ‘laughing stock’ after returning from China with ‘puny’ investment deal
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RACHEL Reeves was accused of making Britain a “laughing stock” after she went cap in hand to Communist China and came back with a “puny” investment deal. The Chancellor defied calls to stay home and take charge of the market meltdown to jet to Beijing to announce the new economic pact.
Ms Reeves described her visit as a “significant milestone” in Britain’s relationship with China — and said it would help Britain’s struggling economy. But Tory MPs and business chiefs poured scorn on that after she announced just £600 million of investment from China over five years.
A leading City adviser said of the deal: “There’s a whiff of desperation about it. I’m amazed they think £600million over five years is a good thing.”. He said big international investors are spooked and not investing in Britain. Ms Reeves also faced mockery for visiting the Beijing shop of UK bicycle maker Brompton — which has imposed a recruitment freeze because of her tax-hiking budget.
Will Butler-Adams, boss of Brompton Bicycles, has seen company profits fall by 99 per cent last year. He said: “From a business perspective there are a whole load of policies, not least National Insurance, London living wage, that will cost us about £550,000 in the coming year.”.
Announcing the deal at a rushed press conference in China, Ms Reeves said she is ushering in a new era of “pragmatic cooperation in action”. She said: “They represent common ground being found on areas like financial services, trade, investment and the climate.