Rachel Reeves blames global volatility for borrowing rates spike amid Tory criticism
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Chancellor tells Conservative MP to ‘get real’ and that UK bond market changes similar to those in other countries. Rachel Reeves has told the Conservatives to “get real” as she blamed global economic volatility for the recent spike in UK borrowing rates which has triggered calls for her resignation and left her contemplating further public sector cuts.
The chancellor appeared in front of MPs on Tuesday for the first time since travelling to China and after several days of bond market turmoil which have taken the government’s borrowing rates to their highest levels in decades. Reeves told the Commons that the recent moves in UK bond markets tracked those seen in other countries, as she accused senior Conservatives calling for her departure of not being “serious”.
Addressing demands from her counterpart, Mel Stride, to step down, Reeves replied: “The shadow chancellor is simply not serious.”. In response to a later question from the Conservative MP Luke Evans, she said: “There has been global volatility in markets. I don’t really believe that it is reasonable to suggest that the reason why bond yields in the United States, in Germany and France have risen is because of decisions made by this government. I think the honourable member opposite should just get real.”.
Reeves is facing one of the most difficult periods in her six months in office, with investors dumping both UK bonds and the pound amid concerns about low growth in Britain and abroad. The government sold £1bn worth of new bonds on Tuesday on the most expensive terms since 2004.
