Rachel Reeves heads to Saudi Arabia in search of economic growth

Rachel Reeves is leading a UK delegation to Saudi Arabia as she searches for economic growth with less than a month to go before a potentially difficult Budget.

The Chancellor will use the visit to Riyadh to try to make progress on a trade deal with the Gulf Co-operation Council (GCC).

Ms Reeves, the first chancellor to visit the Gulf in six years, will attend the Future Investment Initiative (FII) and meet senior Saudi royals, US administration figures and global business chiefs.

A series of announcements on investment between the UK and Saudi Arabia are expected over the coming days.

The Chancellor said: “Our number one priority is growth, so I am taking Britain’s offer of stability, regulatory agility and world-class expertise directly to one of the world’s most important trade and investment hubs, making that case in our national interest.

“After our landmark deals with the US, EU and India, we’re determined to build on that momentum by going further and faster on partnerships that create good jobs, boost business and bring investment into communities across the UK – from the North East to the Oxford-Cambridge corridor.”

A key priority will be accelerating progress on a trade deal with the GCC which the Treasury hopes could add £1.6 billion to the UK economy and contribute an additional £600 million to UK workers’ annual wages in the long term.

She is expected to set out an ambition to work constructively towards this on both sides in her conversations with Gulf counterparts, while acknowledging “areas of divergence and cultural differences”, according to officials.

Ms Reeves will speak at the Fortune Global Forum on Monday and FII – nicknamed Davos in the Desert – on Tuesday to persuade business leaders that the UK is a stable investment destination.

With the prospect of being forced to use tax hikes or spending cuts in the Budget to meet her commitment to balancing day-to-day spending with tax receipts rather than extra borrowing, Ms Reeves will stress her “ironclad” commitment to the fiscal rules.