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Chancellor Rachel Reeves Calls for Stronger Ties with China Amid Economic Struggles
Chancellor Rachel Reeves has argued that Britain has “no choice at all” but to engage with China as she seeks to bolster economic growth against the backdrop of rising borrowing costs and volatile financial markets. Reeves, who arrived in Beijing to finalise trade and investment agreements worth £600 million over five years, is the first UK chancellor to visit China in over five years.
The trip comes as the UK faces persistent inflation and growing concerns about how quickly the Bank of England can reduce interest rates. The yield on 30-year government debt remains at a 27-year high, and the pound continues to struggle against the dollar, reminiscent of last year’s financial turmoil.
Reeves has reaffirmed her “non-negotiable” fiscal rules, underlining the importance of economic stability in restoring market confidence. The Treasury’s upcoming spending review is expected to call for efficiency savings of at least 5% across government departments, a figure that may rise further due to increased debt-servicing costs. Although Reeves has pledged not to repeat the tax hikes seen last autumn, her options remain limited due to persistent inflationary pressures.
Paul Johnson, director of the Institute for Fiscal Studies, warned that breaching the Chancellor’s borrowing limits could trigger further market instability, raising yields even higher. With economic growth subdued and tax receipts underperforming, the cost of servicing government debt is becoming a growing concern.
In a bid to counter these financial pressures, Reeves is focusing on strengthening the UK’s trade and investment ties with China. She argued that the UK’s previous reluctance to engage with Beijing put the country at a disadvantage compared to France and Germany, both of which have significantly expanded their commercial relationships with China. As the world’s second-largest economy and the UK’s fourth-largest trading partner, China plays a vital role in supporting British jobs and exports.
Agreements reached with Chinese Vice Premier He Lifeng include enhanced cooperation in sectors such as financial services, cross-border investment, climate change initiatives, and agriculture. “Choosing not to engage with China is therefore no choice at all,” Reeves said, stressing that Britain should maintain “respectful and consistent” relations with China despite ideological differences.
In the financial markets, investors have become increasingly cautious about UK assets, with inflation remaining stubbornly above the Bank of England’s target of 2%. Although markets had expected interest rate cuts this year, the likelihood of those cuts happening is now in doubt, with potential implications for the 1.8 million households facing rising mortgage costs.
Reeves’s challenge is to strengthen trade ties abroad while maintaining fiscal discipline at home. As the UK navigates these turbulent economic waters, her trip to Beijing underscores a broader strategy to stabilise markets, foster growth, and build international alliances, even in politically sensitive areas.
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McDonald’s Faces Legal Action Over Allegations of Bullying and Abuse Across UK Outlets
Hundreds of current and former McDonald’s employees have initiated legal action against the fast-food giant, accusing the company of widespread bullying, sexual abuse, and harassment at more than 450 of its UK outlets.
The complaint, filed through law firm Leigh Day, follows a BBC investigation that uncovered troubling allegations of “unacceptable” conduct within the company, despite McDonald’s pledging last year to address such issues. Among the plaintiffs are workers as young as 19 who claim to have faced mistreatment from both managers and colleagues.
Alistair Macrow, McDonald’s UK chief executive, is set to testify before the business and trade committee of MPs. The committee is expected to question Macrow about the company’s handling of the alleged misconduct. McDonald’s, which employs 168,000 people across more than 1,400 restaurants in the UK, said it had requested more details from the BBC regarding the reported incidents in order to conduct thorough investigations but had not yet received them.
One 19-year-old claimant said he endured homophobic abuse, including being called derogatory slurs, from both managers and fellow staff. Another worker, who has a learning disability and eye condition, alleged bullying by colleagues and managers, including inappropriate touching and racist remarks. Additional claims include a young worker being pressured for sex and offensive comments about staff based on their nationality.
The Equality and Human Rights Commission (EHRC) has reported receiving approximately 300 complaints of harassment at McDonald’s outlets since the BBC investigation first aired. The EHRC has intensified its efforts, working to update its legal agreement with the company following the new allegations.
In response to the accusations, McDonald’s reiterated its commitment to safeguarding employees and outlined measures taken to address workplace misconduct. These include the introduction of a digital whistleblowing platform called Red Flags, the establishment of a dedicated investigations team, and the appointment of the company’s first head of safeguarding. McDonald’s expressed confidence that these actions are significant steps toward eliminating abusive behavior.
However, experts in employment law have raised concerns about the effectiveness of these measures, particularly for workers on zero-hours contracts, who may feel particularly vulnerable. Emma Cocker, Senior Associate in the Employment team at Lawrence Stephens Solicitors, pointed out that such workers might fear retaliation if they file complaints. “It would appear McDonald’s still has a long way to go in providing a safe working environment,” she said, adding that prolonged tolerance of such behavior would likely lead to further legal claims and grievances.
As the legal action unfolds, McDonald’s faces mounting scrutiny over its efforts to create a safer and more respectful workplace for its employees.
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