Rachel Reeves to Boost UK Investment Amid Economic Uncertainty

British finance minister Rachel Reeves is set to encourage company executives to invest in the UK at the Davos summit. As inflation and debt issues rise, the focus is on revitalizing growth and infrastructure. Ray Dalio warns of a potential debt 'death spiral' if borrowing increases.

British finance minister Rachel Reeves will seek to persuade business leaders to invest in the UK during her visit to Davos this week. Her aim is to counteract slow national economic growth, which has led to a market selloff this month.

Elected with Prime Minister Keir Starmer, Reeves promised to enhance living standards and infrastructure after years under Conservative rule. However, her proposal to generate 25 billion pounds via payroll taxes has met with resistance and increased borrowing costs, potentially necessitating further austerity measures or increased taxes.

Reeves emphasized Britain's investment potential, citing its history of innovation and skilled workforce. As she prepares to reduce regulation for investors, she will meet leaders like JPMorgan's Jamie Dimon. This comes as concerns over Britain's high debt and inflation rise, amplified by Ray Dalio's warning of a debt 'death spiral'.

(With inputs from agencies.)