Rachel Reeves heads to Saudi Arabia on trade deal mission as Autumn Budget looms
Rachel Reeves will travel to Saudi Arabia on Monday in a bid to strengthen the UK’s economic relationship with the country, briefly putting behind growing domestic speculation over the upcoming Autumn Budget.
The chancellor will use his visit to Riyadh to meet with senior Saudi royals, US administration figures and global business leaders to try to make progress on a trade deal with the Gulf Cooperation Council (GCC).
The Treasury hopes a deal with the Gulf Cooperation Council (GCC), which includes the United Arab Emirates, Qatar, Oman, Kuwait and Bahrain, could boost the UK economy by £1.6 billion and add an additional £600 million to annual wages for UK workers in the long term.
The Chancellor is thought to be under pressure to break a pre-election deal in which Labor promised not to increase income tax or National Insurance, with less than a month until Ms Reeves unveils her potentially tough budget.
On the eve of her trip to Saudi Arabia, Ms Reeves said: “I am taking the UK’s offer of stability, regulatory agility and world-class expertise directly to one of the world’s most important trade and investment centres, making it relevant to our national interests.
“Following our landmark agreements with the US, EU and India, we are determined to build on this momentum by going further and faster on partnerships that create good jobs, boost jobs and bring investment to communities across the UK, from the North East to the Oxford-Cambridge corridor.”
The prospect of a trade deal and investment from abroad are unlikely to stop the ongoing speculation in the UK this week about the Budget, as pundits and commentators debate how Ms Reeves will fill the gap estimated at between £30bn and £40bn.
Ministry sources told Independent It was stated that changes to the top rate of income tax were discussed within the government.
Mail on Sunday It has been reported that Ms Reeves is considering introducing a new mansion tax that would hit property owners with a fee of 1 per cent per annum on amounts valued at more than £2 million; This means an annual tax of £10,000 on homes worth £3 million.
Sun on Sunday He suggested he was considering a manifesto-busting 2p increase in income tax.
Health Minister Wes Streeting admitted that there were problems in the economy and said that households were also feeling this distress.
But he would not indulge in “wild speculation about the Budget” ahead of Ms Reeves’ announcement next month.
He told GB News: “We will wait for the Chancellor to announce his Budget. People can see that the public finances are in a difficult situation.”
“So is the economy, but so is family finance, so is business finance; we recognize that we need to grow our economy again.”
In Saudi Arabia, Ms. Reeves is expected to demonstrate a willingness to work constructively in this direction on both sides in her talks with Gulf counterparts, while also acknowledging “areas of differences and cultural differences,” according to officials.
He will speak at the Fortune Global Forum on Monday and the FII, nicknamed Davos in the Desert, on Tuesday to convince business leaders that the UK is a stable investment destination.
