Rachel Reeves was unexpectedly dropped from Sir Keir Starmer’s delegation to China this week, fuelling speculation about growing tensions between the Prime Minister and his Chancellor.
In a late change, Treasury minister Lucy Rigby travelled in her place, accompanying Sir Keir on what he has described as a “history making” visit to Beijing, the Daily Mail has revealed.
Westminster figures have noted that Business Secretary Peter Kyle is the only other Cabinet minister joining the trip.
The move has intensified rumours of a rift between No10 and No11, particularly after a string of Treasury U-turns in recent months.
Labour MPs have warned that Ms Reeves feels “sidelined” by the decision, with one claiming she was “upset” at being excluded.
“She did a lot of the work to make this trip happen and now she’s been left behind. It’s hard not to feel you’re being sidelined in those circumstances,” one MP told the Daily Mail.
“Reeves is furious she wasn’t taken to China with Starmer,” another source revealed to The Express.
“She’s been steadily complaining about it to her aides and those in her inner circle, and little by little it has spread like wildfire around Parliament.”
Labour MPs have warned that Ms Reeves feels ‘sidelined’ by the decision
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The Chancellor has been a key architect of Labour’s push for closer economic ties with Beijing, as she seeks to boost growth following two Budgets that raised taxes sharply.
She became the first senior Labour minister to visit China after the general election in January last year, saying she wanted to “explore deeper economic co-operation” with the country.
Ms Reeves had spent months preparing for this week’s visit alongside Sir Keir and only last week held talks with Chinese finance minister He Lifeng at Davos.
However, Labour insiders have offered an alternative explanation, suggesting the Chancellor was asked to stay behind to help steady the Government during a volatile period.
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The Chancellor held talks with Chinese finance minister He Lifeng at Davos
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“Things are so febrile that you don’t really want to risk having both the PM and Chancellor out of the country for a week,” one source said, pointing to domestic turmoil sparked by Sir Keir’s decision to block Andy Burnham’s return to Parliament.
Treasury sources have rejected claims of a snub, insisting Ms Rigby was chosen because of her brief.
“It was decided as the schedule was finalised that the City Minister would accompany the delegation, given the financial services flavour to it,” a Treasury source said.
Despite the explanations, the episode has deepened speculation that relations between the Prime Minister and Chancellor have cooled.
Treasury sources have claimed Ms Rigby was chosen instead due to her brief
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The Treasury has come under fire over a series of missteps, including retreats on pensioners’ winter fuel payments, proposed disability benefit cuts, and controversial business rates increases hitting pubs and hospitality firms.
Downing Street has insisted that Sir Keir and Ms Reeves continue to work “hand in glove”.
Yet some Labour MPs privately believe the Prime Minister may be preparing to sacrifice his Chancellor if the party suffers heavy losses at the May local elections.
“Someone’s head is going to have to roll and he is determined it won’t be his,” one MP said.