The Treasury has become embroiled in a new row just hours after the department’s anti-corruption minister was forced to resign, with questions mounting over the appointment of a minister who previously lobbied on behalf of Chinese interests.
Emma Reynolds, who formerly served as the Treasurer for the APPG on China, has been appointed as the Treasury’s new City minister.
Until last year’s election, she served as managing director at banking trade group TheCityUK, a role which saw her lobby ministers to water down proposed restrictions on Chinese business activity.
Last month, sources told Bloomberg that Ms Reynolds had campaigned to keep China off the Foreign Influence Registration Scheme’s “enhanced tier”, a categorisation which would have increased transparency obligations for dealings with Beijing. At the time, Labour said Ms Reynolds “was not involved in the government’s China policy.”
open image in galleryEmma Reynolds is facing questions over her support for China (Yui Mok/PA) (PA Archive)
But she has since been promoted to City minister after the resignation of Tulip Siddiq, who became embroiled in a corruption row linked to the deposed regime of her aunt in Bangladesh.
The row over her Chinese links comes just weeks after Beijing was accused of spying on the Royal family and days after chancellor Rachel Reeves was heavily criticised for visting China.
Pressed on whether Ms Reynolds would make any decisions on China – the world’s second largest economy – in her new role, the prime minister’s official spokesperson repeatedly refused to say.
“The declaration process for ministers has been followed in the usual way… I’m not getting into the established process for declarations”, the spokesperson said.
The official was repeatedly pressed on whether Ms Reynolds has recused herself from making decisions on Beijing, but declined to provide an answer.
open image in galleryTulip Siddiq MP resigned after being caught up in a corruption probe (Victoria Jones/PA) (PA Wire)
The PM’s official spokesperson denied that failing to answer the question demonstrated a lack of transparency, saying: “This government has strengthened the powers of the independent adviser. We’ve increased the regularity of transparency publications”, insisting that details on Ms Reynolds’ appointment will be published in the usual way.
“The prime minister has appointed Emma Reynolds because she brings a wealth of experience to this role”, he added.
The latest row comes just hours after Ms Siddiq resigned after she was named in a number of corruption probes in Bangladesh involving her aunt, the country’s former prime minister.
In her resignation letter to Sir Keir Starmer, the Labour MP said she was standing down as her position had become a “distraction”, but thanked him for his confidence in her.
Ms Siddiq had been investigated by the prime minister’s adviser on ministerial standards, Sir Laurie Magnus, after reports that she lived in properties in London linked to allies of her aunt, Sheikh Hasina, who is now exiled in India.
While she was cleared of breaking the ministerial code by Sir Laurie, he appeared to suggest that the prime minister strip the Treasury minister of some of her responsibilities. He told Sir Keir it was “regrettable” that the minister, responsible for tackling financial crime, “was not more alert to the potential reputational risks – both to her and the government – arising from her family’s association with Bangladesh”.