Rachel Reeves US talks live: Chancellor under pressure to secure Trump trade deal amid tax hike fears

Not so very way back, development was introduced virtually as a panacea for Britain’s central financial drawback – an economic system with low funding and consequently disappointing productiveness that stubbornly refused to broaden consistent with the wants and expectations of the nation. Stagnant wages, declining public services, derelict excessive streets… a pervasive sense of malaise summed up within the dread phrase “Britain is damaged”.

Resolve the expansion conundrum, it appeared, and Labour may confidently stay up for the “decade of renewal” – and energy – promised so usually by Keir Starmer.

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Rachel Reeves’ journey comes after the Worldwide Financial Fund (IMF) slashed the UK’s financial development forecast, with a warning that the fallout from Donald Trump’s commerce struggle will hit Britain tougher than the remainder of Europe.

The worldwide financial organisation predicts growth will stall by 0.5 per cent in 2025, with an extra downgrade of 0.1 per cent in 2026. It means the UK economic system will develop by simply 1.1 per cent subsequent 12 months, and 1.4 per cent the 12 months after.

Rachel Reeves has pledged to “defend Britain’s pursuits” as she prepares to satisfy fellow finance ministers in Washington and push for a US commerce deal.

Forward of her go to, Ms Reeves stated: “The world has modified and we’re in a brand new period of world commerce. I’m in little question that the imposition of tariffs could have a profound affect on the worldwide economic system and the economic system at residence.

“This altering world is unsettling for households who’re anxious about the price of residing and companies involved about what tariffs will means for them. However our job as a Authorities is to not be knocked astray or to take rash motion which dangers undermining individuals’s safety.

“As a substitute, we should rise to satisfy the second and I’ll at all times act to defend British pursuits as a part of our plan for change.

“We want a world economic system that gives stability and equity for companies wanting to take a position, and commerce, extra commerce and world partnerships between nations with shared pursuits, and safety for working individuals who need to get on with their lives.”

Rachel Reeves is getting ready for essential talks together with her US counterpart as she pushes to safe a commerce deal amid financial uncertainty.

The chancellor could have her first face-to-face assembly Scott Bessant as she spends three days in Washington DC for the Worldwide Financial Fund (IMF)’s spring conferences.

Her journey comes after the IMF slashed the UK’s financial development forecast, with a warning that the fallout from Donald Trump’s commerce struggle will hit Britain tougher than the remainder of Europe.

The downgrade threatens to wipe out the fiscal headroom she had clawed again with advantages cuts in her spring assertion – that means she is going to possible must make additional cuts or hike taxes when she delivers her second Price range this autumn.