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Rachel Reeves Unveils £15.6bn Transport Boost for English Regions

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Chancellor Rachel Reeves has announced a sweeping £15.6 billion investment in public transport infrastructure across England, targeting metro mayoral areas in the Midlands, North, and West Country. The five-year funding plan—set to run from 2027/28 to 2031/32—includes major allocations for tram, train, and bus networks, with £2.5bn earmarked for expanding Greater Manchester’s tram lines and £2.4bn to extend Birmingham’s network. Other key investments include £2.1bn for West Yorkshire’s Mass Transit programme, £1.8bn for extending the North East Metro, and £1.6bn for Liverpool’s transport links.

The move signals a break from the Treasury’s traditional Green Book investment rules, which Reeves criticised for their bias towards London and the South East. By revising these guidelines, the Chancellor aims to correct regional imbalances and respond to criticism of economic stagnation and service cuts. The Labour government had reviewed many of the same transport proposals after coming to power in July, claiming they were previously unfunded under the Conservatives’ Network North scheme, which followed the cancellation of HS2 north of Birmingham.

While regional mayors largely welcomed the funding, opposition voices expressed scepticism. Conservative and Liberal Democrat figures warned that past promises had often failed to materialise, urging the government to back words with delivery. Reeves hinted at further announcements in next week’s Spending Review, which will detail Whitehall departmental allocations and could include a new Manchester-Liverpool rail link.

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UK Eyes Gulf Trade Deal Following Major Agreements with India, US, and EU

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Chancellor Rachel Reeves has announced that the UK is now pursuing a trade deal with Gulf nations, including Saudi Arabia, the UAE, and Qatar, positioning it as the next key move in its global trade strategy. This follows a series of major agreements signed with India, the US, and the EU, which Reeves described as placing Britain in a “better place on trade than any other country in the world.” She indicated that these deals could positively impact the UK’s economic growth forecast, with stronger-than-expected performance in early 2025 possibly boosting projections further.

The newly signed EU deal, the most significant since Brexit, includes provisions on fishing, trade, defence, and energy. However, it has drawn criticism from opposition leaders. Conservative leader Kemi Badenoch claimed the EU deal was a step “backwards,” while Reform UK’s Nigel Farage accused the government of “selling out” the fishing industry. Liberal Democrat leader Sir Ed Davey cautiously welcomed the deal as a “stepping stone” but called for a move towards a full customs union.

Reeves defended the terms of the deals, emphasizing that high food standards were non-negotiable in talks with both India and the US. The India agreement boosts UK exports such as whisky and cars, while also lowering tariffs on Indian clothing and footwear. The US deal reduces tariffs on certain goods, with the UK increasing beef import quotas while maintaining food quality benchmarks. Reeves said the successful conclusion of these deals signals to the world that Britain is now a top destination for global investment and business.

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UK Finance Minister Rachel Reeves to Hold High-Level Talks Amid Market Volatility

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British Finance Minister Rachel Reeves is set to hold discussions with top executives from major financial firms including Hargreaves Lansdown, Legal & General, Lloyds Banking Group, and M&G, Sky News reported on Tuesday. The meetings come in response to ongoing volatility in global financial markets. While the finance ministry declined to comment on the report, the planned engagements signal a proactive approach to maintaining economic stability.

In a separate development, Reeves announced on Tuesday that she would soon meet with U.S. Treasury Secretary Scott Bessent. The talks are part of broader efforts to establish a new economic partnership between the United Kingdom and the United States. London is aiming to reduce tariff levies that have impacted trade between the two countries in recent years.

The push for a new partnership follows the imposition of steep tariffs by former U.S. President Donald Trump, including a 10% levy on most British imports and a 25% tariff on critical sectors such as automobiles and steel. As part of its economic strategy, the UK is seeking to renegotiate terms that could ease the burden on key industries and strengthen transatlantic trade relations.

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Rachel Reeves Faces £4.4 Billion Deficit, Tough Budget Choices Ahead

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British Finance Minister Rachel Reeves is set to face a £4.4 billion ($5.7 billion) deficit in her budget, reversing a previous surplus projection, according to the Resolution Foundation. The think tank warned that weaker economic growth and higher interest rate expectations have worsened the UK’s financial outlook, with the Office for Budget Responsibility expected to cut its 2025 growth forecast significantly. The Bank of England has already slashed its projection to 0.75%, mirroring the Resolution Foundation’s prediction.

With Reeves’ budget update scheduled for March 26, she is under pressure to meet fiscal rules that require balancing public spending with tax revenues by 2030. However, experts caution against deep welfare cuts and suggest tax increases instead. The rising cost of government borrowing, largely influenced by U.S. economic policies under President Donald Trump, has added to Britain’s fiscal strain. The Resolution Foundation urged Reeves to act decisively while ensuring that lower-income households are not disproportionately affected.

Prime Minister Keir Starmer and Reeves had pledged during last year’s election not to raise income tax, value-added tax, or corporate tax rates. One potential revenue-boosting measure could be extending the current freeze on income tax thresholds until 2030, which would generate billions. However, with fiscal pressures expected to intensify, experts warn that ruling out tax increases entirely could make future budgets even harder to balance.

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