The Chancellor called for more UK-China investment, but said this must not come at the price of national security.

Rachel Reeves vowed to stand by her “non-negotiable” fiscal rules, as her mission to China was overshadowed by further turbulence in the gilt markets.

Visiting bicycle-maker Brompton’s flagship Beijing store on Saturday, the Chancellor declined to give a running commentary on the financial markets in the UK, but said the rules she set for herself in October were essential for economic stability.

She said: “The fiscal rules laid out in the Budget are non-negotiable. Economic stability is the bedrock for economic growth and prosperity.”

The rise in gilt yields to their highest level since 2008, effectively increasing the cost of government borrowing, sparked concern this week that the Chancellor would be unable to meet her rules on debt and spending without imposing deeper cuts than she had already planned.

The spending review, due later this year, is already expected to require departments to make efficiency savings worth 5% of their budgets.

But with more money being spent on servicing government........

© Shropshire Star