The key line so far? Reeves saying she'll go 'further and faster' on growth planpublished at 13:35 Greenwich Mean Time 14 January

13:35 GMT 14 January

Faisal Islam
Economics editor

The key line was the chancellor saying the government will go “further and faster” on its growth plan. She said market volatility was the “playing out” of “global economic uncertainty”.

Reeves was defending both her trade visit to China and her Budget.

She restated her commitment to her self-imposed fiscal rules, which could lead to the need for extra cuts in forecast spending within the next few weeks.

But the chancellor seemed aware that she needed to convey a more detailed and convincing plan for growth, and with more urgency.

This will now be a key priority next week at the World Economic Forum in Davos, and there will be a speech on growth, ahead of the new forecast by the Office for Budget Responsibility in March. The markets will be looking for detail, on infrastructure, trade and industry.

Mel Stride appeared via an elaborate Shakespeare analogy to vaguely call for the chancellor to consider her position.

“To go or not to go, that is a question,” he said. She does not appear to be going anywhere.

Image source, BBC Parliament

Shadow chancellor Mel Stride calls out Reeves for being away "while the government was losing control of the economy".

He references her trip to China and talks of the pound dropping, increasing borrowing costs, rising inflation and interest rates.

He asks why Reeves still went to China - and "was it really worth it?"

Is this actually a 'crisis made in Downing Street'?published at 13:31 Greenwich Mean Time 14 January

13:31 GMT 14 January

Dharshini David
Chief economics correspondent

"This is a crisis made in Downing Street," claims the shadow chancellor, addressing the Commons now.

It's not quite that straightforward.

First, while the markets have been in turmoil, our everyday economy is not feeling an impact - yet.

Whether the chancellor faces a dilemma between curbing spending or raising taxes depends on whether the bond markets remain in this state in a month's time.

And many independent economists concede the recent movements in bond markets over the last fortnight have reflected international factors - President Trump's plans and rising oil prices.

But they also shifted in response to Rachel Reeves' Budget plans, which will add to price pressures and government borrowing.

And much the movement in the pound reflects the UK's growth - and some of that does appear to be linked to dented business confidence as the government's tax rises and other policies come into play.

Regardless, it falls to Downing St to restore confidence - and growth.

Reeves continues now to say the outcomes from her China trip represent "pragmatic cooperation in action".

They "support secure and resilient economic growth," she adds.

She talks of finding the right way to build a "stable and balanced" relationship with China that is in our "national interest" - which, she notes, includes challenging the country "robustly" when required.

The chancellor says she raised some initial concerns during the trip, including around Russia's war in Ukraine and human rights issues in China.

Reeves goes on to say the new agreement with China will help the UK to be a key player in new markets, adding that the agreements will benefit UK exporters and investors.

She names some of these industries where new agreements have been established, including: vaccine approvals, fertiliser, whiskey labelling, legal services and accountancy.

This has set the UK on course to unlock £1bn of value for the UK economy, she tells MPs.

Reeves continues to discuss her trip to China, where she says she met with British companies including Jaguar Land Rover and Brompton Bikes - and that they will benefit from the agreements she reached with the country.

Reeves says the UK and China agreed to renew a "shared commitment" to the UK-China Stock Connect scheme, launched in 2019, which delivers initiatives on financial matters including pensions.

The Chancellor adds that she is pleased to announce that China agreed to issue its "first-ever overseas sovereign green bond" in London during 2025. She says this underlines the UK's position as a global capital for "high quality, sustainable finance".

Chris Mason
Political editor

There is a noticeable and visible show of support for the chancellor from the government frontbench.

Her deputy, Chief Secretary to the Treasury Darren Jones, is there, as you might expect.

But so too is Deputy Prime Minister Angela Rayner, Business Secretary Jonathan Reynolds, and Work and Pensions Secretary Liz Kendall.

Addressing the Commons, Chancellor Rachel Reeves calls growth the "number one mission" of the current government and underlines the need to help British businesses export "around the world", including to China.

Referring to her Beijing trip over the weekend, she says it has delivered a "set of tangible benefits" and that the meeting was the first of its kind since 2019.

Chancellor Rachel Reeves is now delivering a statement in the Commons on her recent trip to China, before taking questions from MPs.

Press watch live above to follow along.

Image source, Reuters

Last week, Rachel Reeves set off on a three-day trip to China aimed at boosting trade and economic ties with the UK. There was backlash from cross-party MPs - here's why:

• As we've been reporting, the trip came at a time when the value of the pound was dropping and UK borrowing costs rising
• On Saturday, Reeves said the agreements reached in Beijing would be worth £600m to the UK over the next five years - that's something we expect to hear more about in her statement
• The Conservatives and Liberal Democrats criticised Reeves for proceeding with the planned trip - shadow chancellor Mel Stride accused Reeves of being "missing in action" and Lib Dem leader Ed Davey said the economy was "flying blind" with both the chancellor and Bank of England governor (who she took with her) abroad
• Defending their colleague, Culture Secretary Lisa Nandy said it was "absolutely right and proper" the trip went ahead while the prime minister said the chancellor was doing a “fantastic job” at the Treasury
• But asked by reporters more than once yesterday, Starmer did not explicitly commit to keeping her as chancellor until the next election - though Downing Street later said she would remain in her role “for the whole of this Parliament”

How problematic are financial markets for the chancellor?published at 12:58 Greenwich Mean Time 14 January

12:58 GMT 14 January

By Ben Chu, policy and analysis correspondent

Let’s take a quick look at market borrowing costs for the UK government, which are measured by yields, or the interest rate, on government debt - known as "gilts".

This morning (14 January) the yield on 30-year gilts - debt that is due for repayment in 30 years - was 5.42%. That’s close to the highest since 1998.

The yield on 10-year gilts - due for repayment in 10 years - was 4.87%, close to the highest since 2008.

Since Rachel Reeves’ Budget last October, 30-year gilt yields have risen by around 60 basis points, or 0.6 percentage points - a considerable rise.

It’s estimated that increase in UK market borrowing costs, if sustained, could add around £10bn to the government’s annual debt interest bill by the end of the Parliament in 2029-30, which would wipe out the Chancellor’s £10bn headroom against her chosen fiscal rules.

Sam Hancock
Live page editor

Image source, Reuters

We're expecting to hear from the chancellor in the Commons shortly, following days of economic turbulence and a political row over her weekend trip to China where she met Vice-Premier He Lifeng.

The last few days have seen the pound fall to below $1.22, close to its lowest level since November 2023, and government borrowing costs soar.

It's led many to believe, as our political editor Chris Mason puts it, that the markets are collectively passing a verdict on PM Keir Starmer and Reeves's economic plan right now and it isn't exactly a ringing endorsement.

Yesterday, Prime Minister Sir Keir Starmer said Reeves was doing an "amazing job" but the Conservatives said she was "hanging on by her fingernails".

Meanwhile, the Chancellor says her trip to Beijing at the weekend would strengthen economic ties - but the Tories said she "fled" during uncertainty in the markets.

She's due to make a statement on her trip to China in the Commons soon, with MPs no doubt pressing her on the economy in questions afterwards.

We'll bring you all the key updates right here, stay tuned.