Business and Trade Secretary Kemi Badenoch has hit out at the landmark UK-India trade deal, calling it unfair to British workers. The agreement, set to add an estimated £4.8bn to the UK economy by 2040, exempts some Indian workers from paying national insurance while on secondment to the UK.
💷 Why Some Tories Aren’t Happy
Critics argue this creates a “two-tier tax” system. Immigration minister Robert Jenrick took to X to voice his frustration, saying, “British workers come last in Starmer’s Britain.”
🛍️ What’s in the Deal?
The deal slashes tariffs on a wide range of goods and opens up service contracts in both countries.
What India Gets:
- Reduced taxes on UK exports like scotch whisky, gin, soft drinks, and premium cars.
- Lower tariffs on British food products, including lamb, salmon, chocolate, and biscuits.
- Access to UK medical devices, aerospace, and electrical machinery.
What the UK Gets:
- Lower tariffs on Indian goods like clothing, footwear, frozen prawns, jewellery, and cars.
🎉 Some Tories Are Celebrating
Not everyone in the party shares Badenoch’s concerns. Former Brexit minister Steve Baker called the deal “great news,” dismissing the tax issue as a “red herring.”
Jacob Rees-Mogg, the former business secretary, echoed this view, celebrating “cheaper food and drink including rice, tea, footwear, and clothing.”
Daniel Hannan, a pro-Brexit peer, praised the deal as a “significant achievement,” adding that the UK has pulled off something no other country has managed at this scale.
Pro-Brexit trade economist Shanker Singham also chimed in, calling the agreement a “significant achievement” and urging the government to secure a similar deal with the US.
Related: UK hit harder by US tariffs than EU – thanks, Brexit
