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Rachel Reeves’s trip to China – the first by a British chancellor since 2019 – was always going to be controversial.

In recent years Conservative governments have been keeping Beijing at arm’s length – amid concern about espionage, the situation in Hong Kong, and the treatment of the Uyghurs.

David Cameron‘s so-called “Golden Era” of engagement in the pursuit of economic investment, notoriously capped by a visit to an Oxfordshire pub for a pint with President Xi Jinping – has been widely written off as a naive mistake.

There are many – not least the incoming US President Donald Trump – who believe we should maintain our distance.

But in another era of economic turmoil, the pursuit of growth is the government’s number one priority.

Britain's Chancellor of the Exchequer Rachel Reeves, right, visits a Brompton flagship store in Beijing, Saturday, Jan. 11, 2025. (Jade Gao/Pool Photo via AP)
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Rachel Reeves visits a Beijing bike shop. Pic: AP

This week’s difficult market news – with the cost of government borrowing surging, and the value of the pound falling – has thoroughly raised the stakes.

Both the Tories and the Lib Dems argued the visit should be cancelled.

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Prominent China hawk and former Conservative leader Iain Duncan Smith MP summed up both arguments against it.

“The trip is pointless,” he wrote on X. “As the disastrous ‘Golden Era’ showed, the murderous, brutal, law-breaking, communist regime in China will not deliver the growth the Labour government craves.

“Instead, she should stay home and try to sort out the awful mess her budget has created.”

President Xi Jinping and David Cameron at the Plough pub
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President Xi Jinping and David Cameron in 2015. Pic: PA

Yet cancelling the trip would have been a diplomatic disaster and far from adding to economic stability would surely have spread a sense of crisis (with inevitable comparisons to Denis Healey’s abandoned visit to Hong Kong in 1976, months before he was forced to apply from an emergency loan from the IMF to save the pound from collapse).

Instead, the government argues the current market situation is a result of “global trends”, and Reeves insists she will be sticking to the decisions taken in the budget.

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“Growth is the number one mission of this government. The fiscal rules laid out in the budget are non-negotiable. Economic stability is the bedrock for economic growth and prosperity.”

Improving the UK/China relationship should “boost our economic growth for the benefit of working people in both of our countries” she said during her meeting with vice premier He Lifeng.

In a speech to media afterwards, Reeves was delighted to announce a big, concrete number to justify the value of the trip, claiming the agreements reached would be worth £600m to the UK economy over five years.

Pragmatism is the new order of the day. Labour argues re-establishing “pragmatic engagement” with China is in the national interest, and it’s a word Reeves used four times in five minutes during her speech.

Ed Conway analysis: The chancellor’s gamble with China

The government insists this new closer relationship will make it easier for them to raise tricky issues and we did hear the chancellor flagging concerns about Hong Kong and the role of China in connection with Russia’s war in Ukraine – though not the Uyghurs, or the imprisoned British citizen and pro-democracy activist Jimmy Lai.

The challenge going forward will be to show that cosying up to China is worth it.

There’s a lot riding on it for the chancellor – with questions being openly asked about her economic strategy given the growing likelihood that to meet her fiscal rules on balancing tax and spending she will be forced to make deep cuts to government departments this spring.

We are promised a big speech from the chancellor on the government’s plans for growth in the coming weeks.

In many ways, the trip to China may have been a welcome break from the difficult decisions which await her return.

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What do dolphins get up to beneath the waves? Their poo has the answers

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What do dolphins get up to beneath the waves? Their poo has the answers

Scientists are turning detective to work out what British dolphins are up to beneath the waves – by using forensic-style DNA techniques on their poo.

Conservationists have been studying the 250 or so bottlenose dolphins living in Cardigan Bay, west Wales, over many decades.

Up to now, they have only been able to observe the dolphins as they surface to breathe or play, identifying the animals from the unique marks on their dorsal fins to establish which animals were hanging out together and where.

Dolphins in Cardigan Bay. Pic: Sarah Perry/WTSWW
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Dolphins in Cardigan Bay. Pic: Sarah Perry/WTSWW

But now for the first time scientists are using DNA excreted by the dolphins in their poo to build a more complete picture of their lives.

It allows them to identify the sex of individuals and how they are related to other animals. Signficantly, it also shows what the dolphins have been eating.

Dolphin poo. Pic: Sarah Perry/WTSWW
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Dolphin poo. Pic: Sarah Perry/WTSWW

Dr Sarah Perry, marine conservation manager at The Wildlife Trust of South and West Wales, said: “In order to be able to conserve them, we need to know why they’re here and a big a missing part of that is, what they’re feeding on.

“Is that changing at different times of the year? Are certain species of fish more important to them early on in the year, in the spring, and the summer months, and then does that change over the autumn and winter months?

“Are certain species important for younger animals? We don’t know that, so that kind of information, we need to find out.”

Dr Sarah Perry
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Dr Sarah Perry

Catching dolphin poo involves a large element of luck.

The animals occasionally eject a cloud of waste material as they swim.

But it quickly sinks, so the scientists’ boat needs to be close enough for them to scoop it out of the sea with a fine-meshed net.

A sample is then sent to a lab at the University of Aberystwyth, where DNA is extracted for analysis.

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Scientists on the hunt for dolphin poo.
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Scientists on the hunt for dolphin poo

Dolphins adapting to effects of climate change

Results so far suggest the dolphins are having to adapt to a change in fish species as the water warms.

Dr Niall McKeown
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Dr Niall McKeown

Dr Niall McKeown, a marine biologist at the university, said: “We are seeing large amounts of sardine, sprat, and anchovy.

“This is quite interesting because these are species that are known to have increased in abundance in Welsh waters in recent years in response, we believe, to climate change.”

A scientist analyses a sample
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Dr Niall analyses a sample

Scientists unsure why dolphin numbers are falling

But questions remain about the dolphins.

The number in Cardigan Bay seems to be falling, but scientists are not sure whether that’s a natural cycle or a response to other factors.

Boat noise and disturbance from some fishing activities, such as scallop dredging, could impact the animals, which rely on sound to communicate.

Dr Parry said: “How lucky are we to have such an important population of dolphins here? It’s crazy that we really don’t know that much about them.”

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Sir Alan Bates attacks ‘kangaroo court’ Post Office scheme after ‘take it or leave it’ offer

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Sir Alan Bates attacks 'kangaroo court' Post Office scheme after 'take it or leave it' offer

Sir Alan Bates has accused the government of presiding over a “quasi kangaroo court” for Post Office compensation.

Writing in The Sunday Times, the campaigner, who led a years-long effort for justice for sub-postmasters, revealed he had been given a “take it or leave it” offer that was less than half of his original claim.

“The sub-postmaster compensation schemes have been turned into quasi-kangaroo courts in which the Department for Business and Trade sits in judgement of the claims and alters the goal posts as and when it chooses,” he said.

“Claims are, and have been, knocked back on the basis that legally you would not be able to make them, or that the parameters of the scheme do not extend to certain items.”

More than 900 sub-postmasters were prosecuted between 1999 and 2015 after faulty Horizon accounting software made it look as if money was missing from their accounts.

Many are still waiting for compensation despite the previous government saying those who had their convictions quashed were eligible for £600,000 payouts.

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‘It still gives me nightmares’

After the Post Office terminated his contract over a false shortfall in 2003, Sir Alan began seeking out other sub-postmasters and eventually took the Post Office to court.

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A group litigation order (GLO) scheme was set up to achieve redress for 555 claimants who took the Post Office to the High Court between 2017 and 2019.

Sir Alan, who was portrayed by actor Toby Jones in ITV drama Mr Bates Vs The Post Office, has called for an independent body to be created to deliver compensation.

He added that promises the compensation schemes would be “non-legalistic” had turned out to be “worthless”.

It is understood around 80% of postmasters in Sir Alan’s group have accepted a full and final redress, or been paid most of their offer.

Read more:
Post Office scandal explained

Who are the key figures in the scandal?

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‘Lives were destroyed’

A Department for Business and Trade spokesperson told Sky News: “We pay tribute to all the postmasters who’ve suffered from this scandal, including Sir Alan for his tireless campaign for justice, and we have quadrupled the total amount paid to postmasters since entering government.

“We recognise there will be an absence of evidence given the length of time which has passed, and we therefore aim to give the benefit of the doubt to postmasters as far as possible.

“Anyone unhappy with their offer can have their case reviewed by a panel of experts, which is independent of the government.”

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PM could lift controversial benefit cap in budget – as Farage makes two big election promises

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PM could lift controversial benefit cap in budget - as Farage makes two big election promises

Sir Keir Starmer could decide to lift the two-child benefit cap in the autumn budget, amid further pressure from Nigel Farage to appeal to traditional Labour voters.

The Reform leader will use a speech this week to commit his party to scrapping the two-child cap, as well as reinstating winter fuel payments in full.

The prime minister – who took Westminster by surprise at PMQs by revealing his intention to row back on the winter fuel cut – has previously said he would like to lift the two-child cap if the government could afford it.

There are now mounting suggestions an easing of the controversial benefit restriction may be unveiled when the chancellor delivers the budget later this year.

According to The Observer, Sir Keir told cabinet ministers he wanted to axe the measure – and asked the Treasury to look for ways to fund the move.

It comes after the government delayed the release of its child poverty strategy, which is expected to recommend the divisive cap – introduced by former Tory chancellor George Osborne – is scrapped.

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Why did Labour delay their child poverty strategy?

Ministers have already said any changes to winter fuel payments, triggered by mounting political pressure, would only be made when the government’s next fiscal event rolls round.

The Financial Times reported it may be done by restoring the benefit to all pensioners, with the cash needed being clawed back from the wealthy through the tax system.

The payment was taken from more than 10 million pensioners this winter after it became means-tested, and its unpopularity was a big factor in Labour’s battering at recent elections.

Before Wednesday’s PMQs, the prime minister and chancellor had insisted there would be no U-turn.

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Will winter fuel U-turn happen?

Many Labour MPs have called for the government to do more to help the poorest in society, amid mounting concern over the impact of wider benefit reforms.

Former prime minister Gordon Brown this week told Sky News the two-child cap was “pretty discriminatory” and could be scrapped by raising money through a tax on the gambling industry.

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Brown questioned over winter fuel U-turn

Mr Farage, who believes Reform UK can win the next election, will this week accuse Sir Keir of being “out of touch with working people”.

In a speech first reported by The Sunday Telegraph, he is expected to say: “It’s going to be these very same working people that will vote Reform at the next election and kick Labour out of government.”

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