Rachel Reeves will lead a delegation of senior business leaders to Saudi Arabia on Monday, becoming the first UK chancellor to visit the Gulf in six years. The trip is intended to deepen economic ties with a state widely criticised for human rights abuses, as the government seeks a trade agreement with the Gulf Cooperation Council (GCC).
The proposed deal, which also involves Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates, could add £1.6bn to the UK economy annually and a further £600m to workers' wages in the long term. Reeves 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.”
However, the visit has drawn criticism from campaigners and the Trades Union Congress, which has urged the government not to agree deals with countries that abuse human rights and workers’ rights. The TUC said: “Our view on trade deals is consistent: the government should not agree deals with countries that abuse human rights and workers’ rights, and violate international law.”
Reeves is expected to finalise a series of investments during the trip, which comes ahead of the second budget on 26 November. Pressure is mounting on the chancellor to announce tax rises to address a potential £30bn gap in public finances. She will speak at the Fortune Global Forum in Riyadh and the Future Investment Initiative, where she will attempt to attract investment at a time of global uncertainty.
She will be accompanied by investment minister Jason Stockwood and prominent business leaders, including the chief executives of Barclays, HSBC and the London Stock Exchange. Trade with the Gulf is worth about £59bn a year, with the GCC deal expected to increase trade by 16%. The visit follows Keir Starmer’s own trip to Saudi Arabia last year, despite his earlier criticism of Boris Johnson for meeting the crown prince “going cap in hand from dictator to dictator”.
Stockwood said: “By deepening our economic ties with the region, alongside our ongoing trade talks with the GCC, we will open new doors for British exporters, attract high-value investment, and fuel growth in the UK.” Reeves is expected to acknowledge “areas of divergence and cultural differences” during the visit, according to officials.
