Starmer's New Anti-Corruption Minister Faces Pro-China Controversy

The Treasury has found itself in a new controversy just hours after the resignation of its anti-corruption minister, as concerns arise over the appointment of a minister with a history of lobbying for Chinese interests.

Emma Reynolds, formerly the Treasurer for the All-Party Parliamentary Group on China, has been named the Treasury’s new City minister. 

Before last year’s election, she was managing director at TheCityUK, a banking trade group, where she lobbied to ease proposed restrictions on Chinese business activities. 

Sources told Bloomberg that last month, Reynolds advocated against placing China in the "enhanced tier" of the Foreign Influence Registration Scheme, which would have imposed stricter transparency requirements for dealings with Beijing. At the time, Labour stated that Reynolds was not involved in shaping the government's China policy.

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.

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”.