Rachel Reeves has warned investors on higher taxes. Joe Giddens/PA Wire

Chancellor Rachel Reeves has sent a message to international investors on incoming tax hikes and spending cuts in an effort to ease market nerves ahead of this year’s Budget.

Speaking at the Future Investment Initiative – or ‘Davos in the Desert’ – in Riyadh, Saudi Arabia, Reeves prepared investors for a more difficult Budget next month as she talked up her commitment to her fiscal rules.

The Chancellor, who is set to meet Trump administration officials and Saudi royals in the coming days, indicated she would look to build a bigger fiscal headroom than £9.9bn in order to futureproof the UK economy against any incoming shocks.

On her trip to the Middle East with the investment minister Jason Stockwood , Reeves i

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