The city’s new minister’s pro-China stance is under scrutiny
Downing Street has refused to say whether new City minister Emma Reynolds is able to make decisions about the UK’s dealings with China.
Reynolds was appointed by Sir Keir Starmer following the resignation of Tulip Siddiqui amid growing pressure over anti-corruption investigations in Bangladesh.
Questions have been raised about whether Reynolds has a conflict of interest, as she was the director of public affairs at a banking trade group involved in lobbying for less restrictions on Chinese businesses.
The Prime Minister’s official spokesman repeatedly declined to say whether Reynolds’ background meant he would have to recuse himself from, or step back from, decisions about China.
He said the new Cities Minister “brings a wealth of experience to his role”.
But he said, “When it comes to the process of ministerial appointment, it will be followed in the normal manner.”
It comes as the UK government seeks closer financial services ties with China in an effort to boost economic growth.
Tulip Siddiq was due to join Chancellor Rachel Reeves on a delegation to China last week, but remained in Britain to focus on clearing her name.
Last month he was named in an investigation into claims that his family embezzled up to £3.9 billion of infrastructure spending in Bangladesh.
Her aunt is former Bangladeshi Prime Minister Sheikh Hasina, who fled into exile after being ousted last year.
Siddique announced her resignation on Tuesday, saying that although she had been cleared of violating the ministerial code by the government’s ethics adviser, she did not want to be “terrible” to the government’s mission.
Her replacement as Economic Secretary to the Treasury, Emma Reynolds, returned to Parliament in July after a four-and-a-half-year break, during which she was chief lobbyist for TheCityUK, which represents the UK’s major banks.
according to bloombergReynolds was involved in lobbying the then Conservative government not to include China in the “advanced tier” of the foreign influence registration scheme.
The plan, intended to protect Britain’s political system from covert foreign influence, was passed into law but never implemented by the previous government.
This has not yet been implemented by the Labor government.
The Reynolds lobby group had argued that the “enhanced level” – the most stringent level of scrutiny – would deter investment from China and generate bad publicity.
The MP is also the former Treasurer of the All-Party Parliamentary Group on China.
Asked about potential conflicts of interest upon his appointment, the Prime Minister’s spokesman said: “There is an established process for managing (ministers’) interests.”
Ministers are required to report any potential conflicts of interest when taking up their posts and this is published quarterly.
The Prime Minister’s spokesman repeatedly declined to say whether Reynolds had been “ceased” from making decisions about China as a result of this process.
Conservative shadow chancellor Mel Stride told BBC Breakfast that Sir Keir should have dealt with Siddiq earlier because she missed Rachel Reeves’ visit to China, a key part of her job.
He said the government was in a “quite anxious position” regarding his replacement with respect to China.
