George Osborne: UK 'not immune' to China turmoil

http://www.bbc.co.uk/news/uk-politics-34053285

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Chancellor George Osborne says Britain needs to be "better insulated" from the shocks in the global economy.

There have been two days of stock market turmoil around the world amid fears over China's rate of growth.

Responding to the stock market falls, George Osborne said the UK could "do more to increase our economic stability and security".

But Labour accused Mr Osborne of complacency and not doing enough to boost the UK's productivity.

The People's Bank of China has cut its main interest rate by 0.25%, the fifth interest rate cut since November - a decision that has boosted European share prices after dramatic falls on Monday.

The rapid declines in stock exchanges around the world has been nicknamed the "great fall of China".

Mr Osborne, who has been a key figure in a UK export drive to China, said: "We're not immune to what goes on in the world. We know that. We can do more to increase our own economic stability and security."

He added that the government had to carry on taking "difficult decisions so that we are able to deal with whatever the world throws at us and make sure we are better insulated from that".

Asked what the UK could do, Mr Osborne said: "We can go on trading with China, that's going to help everyone, but we have also got to put our own house in order, we've been doing that in recent years, and so we are much better prepared than we would have been a few years ago for this kind of shock".

But Labour is accusing the ministers of not doing enough.

The shadow chancellor, Chris Leslie said: "The Chancellor is too complacent about the impact a slowdown in China and emerging markets might have on the UK, particularly for our exporters.

"Britain needs a serious strategy to help exporters, this means redoubling efforts to boost productivity, tackling infrastructure obstacles, addressing the skills deficit and ensuring innovators can access the capital they need".