The UK government faces pressure to balance economic growth with public finances, with discussions ongoing about potential tax increases, including a possible 2p rise in income tax or a mansion tax on properties over £2 million.

Reeves' trip occurs ahead of the Autumn Budget, amid speculation on how she will address the fiscal deficit, which is a key focus of her economic strategy.

Rachel Reeves is visiting Saudi Arabia to strengthen UK-Gulf trade relations and negotiate a trade deal with the Gulf Cooperation Council, which includes the UAE, Qatar, Oman, Kuwait, and Bahrain.

During her visit, Reeves aims to highlight the UK's stability as an attractive investment destination at major forums like the Fortune Global Forum and FII, seeking to persuade business leaders of its long-term appeal.

The UK hopes that the GCC trade agreement could add approximately £1.6 billion to the economy and boost UK workers' wages by around £600 million annually in the long run.

Reeves plans to discuss these trade ambitions with Gulf counterparts, acknowledging cultural differences and divergences, while emphasizing a constructive approach to deepen economic ties.

The visit also highlights Saudi Arabia's efforts to strengthen economic ties with the UK, including the inaugural flight of Riyadh Air to Heathrow and the Saudi Public Investment Fund's recent acquisition of a 15% stake in London's Heathrow Airport.

These investments reflect the growing economic relationship, with further investment expected during Reeves' visit, amidst ongoing significant financial collaborations between the UK and Gulf sovereign wealth funds.

Reeves will meet with senior Saudi royals, officials from the Trump administration, and business leaders, continuing the UK’s engagement with Gulf leaders and investors.

While focusing on economic growth, Reeves remains committed to maintaining fiscal discipline, preparing to implement tax hikes or spending cuts in the upcoming Budget to address the UK's significant fiscal shortfall estimated between £30 billion and £40 billion.

She emphasizes her dedication to fiscal rules, aiming to balance public finances without additional borrowing, despite the economic challenges ahead.

Trade talks with the GCC are at an advanced stage, despite concerns over regional human rights and workers' rights, with Britain acknowledging potential cultural divergences but remaining optimistic about deepening economic relations.