Britain’s Chancellor of the Exchequer Rachel Reeves hugs a guest during a reception in Downing Street (Image: POOL/AFP via Getty Images)
Rachel Reeves has confirmed the UK is close to securing a major trade deal with six Gulf nations, including the controversial countries Saudi Arabia and Qatar. Speaking to the BBC, Chancellor Ms Reeves said the Gulf Cooperation Council (GCC) pact would be the Government’s “next deal” as it pushes to boost post-Brexit trade links. The six-member GCC includes Saudi Arabia, Qatar, Bahrain, Kuwait, Oman, and the United Arab Emirates. Talks on the agreement began under the Conservative government and have continued under Labour.
Ms Reeves hailed recent trade agreements with the United States, the European Union, and India as proof Britain is positioning itself as a global trading power post-Brexit. She told the BBC: “Britain is in a better place than any other country in the world in terms of deals with those countries.
“We’ve got the first deal and the best deal so far with the US, we’ve got the best deal with the EU for any country outside the EU, and we’ve got the best trade agreement with India.”
However, the inclusion of Saudi Arabia and Qatar has raised concerns over human rights.
“Both countries have faced international criticism for repression, restrictions on free speech, and the treatment of women.
Saudi Arabia’s role in the Yemen conflict and its crackdown on dissidents has attracted widespread condemnation. Qatar has also faced scrutiny over migrant worker rights and press freedoms.
Conservative Party leader Kemi Badenoch (Image: Getty)
Ms Reeves acknowledged these issues but insisted the UK must balance trade interests with values. She said: “We’ve got to be trading with growing economies and this deal will help support British jobs and exports.”
The UK Government’s push to deepen ties with the Gulf comes alongside renewed trade talks with the European Union, which culminated in a new deal agreed on May 19.
Prime Minister Sir Keir Starmer described the agreement as a “win-win” that marks the start of “a new era” in UK-EU relations
The deal simplifies travel to Europe by expanding passport e-gate access for British holidaymakers, streamlines trade for farmers with eased product standards, and introduces a youth experience scheme for Britons to live and study in the EU.
Security cooperation between Britain and the EU has also been strengthened under the deal, reflecting ongoing shared threats despite Brexit divisions.
The Government claims the reset will boost the economy by £9 billion by 2040, cutting red tape for businesses and travellers.
However, the deal has faced fierce criticism from Conservative voices over extended EU fishing rights in UK waters and the adoption of dynamic regulatory alignment.
Ms Reeves also ruled out trade negotiations with China, highlighting ongoing concerns about Beijing’s human rights record and geopolitical ambitions.
She said: “We are not looking to have trade negotiations with China,” signalling continued caution despite efforts to expand global trading partnerships.
Sir Keir said the agreement signals a “mood change” and a willingness to “look forward, not litigate old arguments.”
Conservative Minister Kemi Badenoch accused the Government of “surrendering” key Brexit gains, saying: “Nobody has lost more than the fishermen.”
Reform UK leader Nigel Farage has likewise branded Sir Keir’s EU reset as “abject surrender”.