The shadow financial secretary to the Treasury has called on Chancellor Rachel Reeves to "urgently get a grip" on the economy amid the current financial market turmoil. Gareth Davies adds high interest rates and mortgate payments "will be hurting people across the country. Report by Brooksl. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
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00:00Clearly, markets are reacting negatively to what has been, since they took office, a pretty
00:05troubling situation in the Treasury, where they started off by talking down the economy,
00:10talking down the country, which has spooked investors.
00:13And then we had the Halloween budget, which will see growth downgraded by the OBR, inflation
00:20go up, debt go up, and that is a troubling mix for investors, and therefore they are
00:26walking with their feet.
00:29We are very clear that Rachel Reeves needs to urgently get a grip of this, as well as
00:33Keir Starmer, and really change course, because this is going to be really hurting individuals
00:39across the country with higher interest rates, higher mortgage payments, and so this could
00:45be hurting for everybody in due course.
00:48So I think she should reverse some of the measures that she's implemented.
00:52We know that she introduced a manifesto-breaking national insurance contribution increase.
00:59That's going to hurt businesses, they're going to push those extra costs onto consumers,
01:03which is going to push up inflation.
01:05She needs to really reassess that budget, and come to the House and explain how she's
01:09going to calm markets urgently.
01:11Well, on the one hand, China is the second largest economy in the world, and as a G7
01:18economy ourself, we should engage with the largest countries in the world, and the largest
01:23economies in the world.
01:24But we should do so with our eyes wide open, and I understand Rachel Reeves will be coming
01:28to the House today.
01:30She needs to explain how she will capture the opportunities of that economy, while also
01:35protecting UK interests, UK national security, supply chains, and intellectual property.
01:41And so it's about balance with China, but clearly they don't play by the same rules
01:46as some of our friends in Europe and the United States, and so we should enter any engagement
01:51with China very clearly with our eyes wide open.