SIR Keir Starmer faces controversy as his new City minister is accused of a conflict of interest over past China lobbying.
Downing Street declined to confirm whether Emma Reynolds will be involved in shaping China policy, given her previous work as a lobbyist advocating for less stringent regulations on financial contributions from Beijing.
The Conservative party has intensified its criticism, highlighting the Prime Minister’s failure to address the issue of lobbyists transitioning between governmental roles and corporate positions.
Ms Reynolds was handed the powerful Treasury role after Tulip Siddiq quit over a corruption probe linked to her family in Bangladesh.
She was previously a bigwig at TheCityUK, a banking lobby group that fought against tougher checks on Chinese businesses.
Reports indicate that the Member of Parliament for Wycombe went as far as advocating against subjecting China to increased scrutiny due to concerns about potential negative impacts on investments, as reported by Bloomberg.
No10 insisted she “brings a wealth of experience” but repeatedly refused to say if she would be blocked from China-related decisions.
The row comes as Labour tries to build closer financial ties with China to boost the economy.
Shadow Treasury Minister Nigel Huddleston last night wrote to Treasury bosses demanding clarity, saying it is “essential” Ms Reynolds recuse herself from China-related decisions.
He wrote: “The Prime Minister has said that he wants to end what he describes as ‘the revolving door between government and the companies they regulate’.
“This appointment, then, is surprising but given this commitment I am sure that you will agree with the need for clear information on my above questions.”
Former Tory leader and China hawk Sir Iain Duncan Smith also told The Sun: “China will be rubbing their hands.
“If she is not recused from this, this looks very much like the latest stage of project kowtow.”
