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Rachel Reeves will visit Saudi Arabia on Monday as she looks to strengthen Britain’s economic ties with the country, and briefly leave behind growing speculation over the upcoming domestic event. autumn budget,
The chancellor will use the trip to Riyadh to try to make progress on a trade deal with the Gulf Co-operation Council (GCC), meeting with senior Saudi royals, US administration figures and global business chiefs.
The Treasury expects the deal with the GCC, which also includes the United Arab Emirates, Qatar, Oman, Kuwait and Bahrain, could add £1.6 billion to the UK economy and contribute an extra £600 million to the annual wages of UK workers in the long term.
Less than a month before Ms. Reeves makes her announcement potentially tight budget, It is believed the Chancellor was under pressure to break Labour’s pre-election pledge not to increase income tax or national insurance.
On the eve of her visit to Saudi Arabia, Ms Reeves said: “I am taking the UK’s stability, regulatory agility and world-class expertise we offer straight to one of the world’s most important trade and investment centres, making this a case in our national interest.
“Following our landmark deals with the US, EU and India, we are determined to build on that momentum by building on and accelerating partnerships that create good jobs, boost trade and bring investment to communities across the UK – from the North East to the Oxford-Cambridge corridor.”
Hopes for a trade deal and investment from abroad are unlikely to stop the ongoing budget speculation in Britain this week, with experts and commentators debating how Ms Reeves will bridge the shortfall of between £30bn and £40bn.
Ministry sources have said Independent There has been discussion within the government on changing the top rate of income tax.
mail on sunday Ms Reeves is reported to be considering a new mansion tax, which would impose an annual charge of 1 per cent of that amount on owners of properties valued at more than £2 million, which would mean a levy of £10,000 a year for homes worth £3 million.
sun on sunday She suggested she was considering a manifesto for a 2P increase in income tax.
Health Secretary Wes Streeting acknowledged there were some issues with the economy and said families were also feeling the pressure.
However, he would not address “unfounded speculation about the budget” ahead of Ms Reeves’ statement next month.
He told GB News: “We will wait for the Chancellor to set out his budget. “People can see that the public finances are in a challenging position.
“The economy is the same, but family finances are the same, business finances are the same, we believe, we have to get our economy growing again.”
In Saudi Arabia, Ms Reeves is expected to set out an ambition on both sides to work constructively towards this end, acknowledging “areas of difference and cultural differences” in her talks with Gulf counterparts, according to officials.
She will speak at the Fortune Global Forum on Monday and FII on Tuesday – known as Davos in the Desert – and will reassure business leaders that the UK is a stable investment destination.