Reeves commits to fiscal discipline during China visit as borrowing costs rise

Chancellor Rachel Reeves has pledged to take action to meet fiscal rules amid rising government borrowing costs. She faces pressure to address potential tax increases or deeper spending cuts before a fiscal statement due in March. While in China, Reeves emphasized her commitment to fiscal discipline, stating her rules are "non-negotiable." She is considering additional spending cuts beyond the planned 5% efficiency savings. Reeves' trip marks the first high-level economic meeting with China since 2019. She announced agreements worth £600 million for the UK economy, focusing on financial services, trade, and investment, while stressing the importance of national security.