City minister clear to deal with China, says No 10

There is no need for new City minister Emma Reynolds to step back from any duties because of her lobbying past, Downing Street has said.

Reynolds has taken over the role from Tulip Siddiq, who resigned on Tuesday as an anti-corruption investigation in Bangladesh involving her intensified.

Responsibility for tackling corruption is part of the City minister's brief, and questions were raised about whether Reynolds would recuse herself from matters involving China because, until May, she was managing director of a firm which lobbied for fewer restrictions on Chinese businesses.

The prime minister's spokesman said a former job was "not an ongoing financial interest".

Twenty-four hours earlier, the spokesman had repeatedly declined to say whether Reynolds' background meant she had to recuse herself from decisions about China.

But on Thursday, he told reporters: "The requisite discussions have now been held with the minister, in consultation with the permanent secretary [the Treasury's top official], and it has been determined there is no need for any recusal, nor any changes to her portfolio."

The minister had confirmed she stepped down from her role at lobbying firm TheCityUK on becoming an MP and entering government in July, he said.

"More broadly, as per the ministerial code, any relevant interests have been duly declared and managed appropriately," the spokesman added.

When MPs become ministers, they must provide the top civil servant in their department with a full written declaration of private interests that could give rise to an actual or perceived conflict of interest.

Reynolds' appointment has also raised questions about the broader issue of ex-ministers taking up lobbying roles and vice versa.

As opposition leader, Sir Keir Starmer pledged there would be "no more revolving doors between government and the companies they regulate" under Labour.

Put to No 10 that the prime minister might be seen to be doing the same as the previous government, the spokesman said Sir Keir had taken action "to follow through on his commitment to uphold and improve standards for public life".

Former ministers are not allowed to lobby the government for two years after they leave their posts.

Asked if Sir Keir had considered introducing a rule that would introduce a minimum time for former lobbyists to wait before becoming ministers, No 10 referred reporters to the existing process.

"We haven't got any plans to strengthen those beyond what we have already introduced to strengthen the ministerial code," the spokesman said.

The government has been seeking closer financial services ties with China to help boost economic growth, which remained sluggish in November.

According to official figures, the UK economy grew by 0.1% - less than expected - after shrinking in September and October.

Siddiq had been due to join Chancellor Rachel Reeves on a visit to China last week, but remained in the UK to focus on clearing her name.

She was named last month in an investigation into claims her family embezzled up to £3.9bn from infrastructure spending in Bangladesh.

Her aunt is former Bangladeshi Prime Minister Sheikh Hasina, who fled into exile after being deposed last year.

Siddiq quit on Tuesday, saying that although she had been cleared of breaking the ministerial code by the government's ethics adviser, she did not want to be a "distraction" for the government.

Reynolds returned to Parliament as MP for Wycombe in July after losing her previous seat in the 2019 general election. During that time, she was the chief lobbyist for TheCityUK which represents leading UK banks.

According to Bloomberg, Reynolds was involved in lobbying the then Conservative government not to include China in the "enhanced tier" of the Foreign Influence Registration Scheme.

The scheme, aimed at protecting the UK political system from covert foreign influence, had not been implemented by the time last July's general election was called, and has yet to come into force under Labour.

Reynolds is also a former treasurer of the all-party parliamentary group on China.