No 10 won’t confirm new City Minister’s role in China policy
Downing Street has declined to confirm whether new City minister Emma Reynolds will be able to make decisions about the UK’s relationship with China.
She was appointed to the post of economic secretary to the Treasury yesterday, after Tulip Siddiq resigned over allegations of corruption linked to the former government in Bangladesh.
Bloomberg reported that Siddiq’s successor was involved in a campaign to persuade the previous government not to impose tougher rules on banks doing business with China when she worked at the Square Mile trade body, TheCityUK.
Until May 2024, Reynolds, who was also previously MP for Wolverhampton North from 2010 to 2019, worked for four years as managing director at the financial services lobby group which was involved in calling for fewer restrictions on UK-China business relations.
Reynolds was reportedly involved in lobbying the Conservative government to exclude China from the “enhanced tier” of the Foreign Influence Registration Scheme, which is aimed at protecting UK politics from hidden foreign influences.
The scheme has been passed in law but not yet implemented by the previous or current governments.
Bloomberg said TheCityUK argued against China being placed under the strictest level of scrutiny as they claimed it would deter investment and create bad publicity. At the time, Labour said Reynolds would not be involved in decisions on China policy.
Having moved Reynolds to the City brief, No 10 was asked repeatedly on Wednesday whether she would continue to recuse herself from such discussions.
The Prime Minister’s official spokesman said there was an “established process” for declarations of interests and would not confirm the exact details of Reynolds’s policy portfolio.
“The Prime Minister has appointed Emma Reynolds because she brings a wealth of experience to this role as City minister,” he said.
Shadow Chancellor Mel Stride described it as “a rather curious situation.”
It comes as Britain seeks closer ties with China on financial services in a bid to generate economic growth, with Chancellor Rachel Reeves visiting Beijing and Shanghai last weekend.
Siddiq had been meant to join the delegation but remained in the UK as pressure on her grew over alleged connections to her aunt, Sheikh Hasina’s, former regime in Bangladesh.
In January last year, Keir Starmer said in a speech he wanted to “clean up politics” that there would be “no more revolving doors between government and the companies they regulate”.
The Labour election manifesto also stated: “[We] will review and update post-government employment rules to end flagrant abuses seen under the Conservatives.
“This includes enforcing restrictions on ministers lobbying for the companies they used to regulate, with meaningful sanctions for breaching the rules.”
Asked about this by reporters, the spokesman said: “The Prime Minister’s approach to appointing ministers, you’ve seen that with ministers who have been appointed, is to appoint the best people to these jobs.”