Kemi Badenoch and Nigel Farage have slammed the UK’s new trade deal with India, claiming it creates a “two-tier” tax system that leaves British workers at a disadvantage. But are they right?
💼 What’s in the Deal?
The agreement allows Indian workers seconded to the UK to skip National Insurance payments for three years. In return, British workers on short-term visas to India get the same break – avoiding double taxation. This is a standard part of many international trade deals, including those the UK already has with the EU, US, and South Korea.
The deal, which wraps up three years of negotiations, is expected to add £4.8 billion to the UK economy by 2040. It also reduces tariffs on a range of goods and opens up India’s services market to British firms.
🗣️ Tories Cry ‘Two-Tier Taxes’
Badenoch took to X to attack the deal, calling it an example of “two-tier taxes from two-tier Keir.” Her ally Robert Jenrick piled on, saying the deal “puts British workers last.” Meanwhile, Nigel Farage chimed in, claiming it “discriminates against British workers.”
🤔 Here’s Why They’re Wrong
First, this isn’t a one-sided arrangement. It’s a reciprocal deal, meaning it protects British workers in India from double taxation, too. That’s a big win for businesses trying to expand into one of the world’s fastest-growing economies.
Jonathan Reynolds, the business and trade secretary, pushed back on the criticism, pointing out that similar deals already exist. He told BBC Radio 4’s Today programme: “What the Conservatives are confused about is a situation where a business in India seconds someone to the UK, or a UK business seconds a worker to India, where you don’t pay into both social security systems at the same time.”
🗣️ Even Tories Back the Deal
Despite the backlash, other Conservatives have praised the deal. Former deputy PM Oliver Dowden called it a step forward, while Steve Baker, who served as Theresa May’s Brexit minister, described it as “great news.” He added, “The tax issue will likely turn out to be a red herring.”
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