Starmer celebrates India trade deal as a significant victory for working citizens during PMQs, with ministers stressing that the tax agreement won't disadvantage British citizens.
This bloody magnificent UK-India free trade deal, announced on the 6th of May, 2025, is a bloody massive win for blighty as ol' Keir Starmer boasted today, brushing aside criticisms about the tax breaks for Indian workers.
The bloke used Prime Minister's Questions to stick it to the Tories, stating that the £5 billion agreement was the largest made by the UK since the bloody Brexit debacle. He spoke after ministers got flak for giving Indian employees of Indian firms operating in Britain a three-year exemption from national insurance payments.
The sweetener—reciprocal for UK workers in India—avoids people being taxed twice, both at home and abroad. However, the Tories and others cry foul, accusing the government of creating a "two-tier" system that gives Indian workers an advantage.
National Insurance contributions for British firms went up in last year's Budget. On the other hand, ministers today insisted it's standard procedure in international agreements, with the previous Tory government handing a five-year exemption to Chile in 2012.
After PMQs, Downing Street hinted that the 'final details' hadn't been agreed yet, implying there's still room for wiggling. Business secretary Jonathan Reynolds, the architect of the agreement, threw some punches this morning as Labour faced backlash over the £5 billion agreement announced yesterday.
When asked whether the agreement meant Indian workers paying less tax than their British counterparts doing the same job, Mr. Reynolds said, "No." During PMQs, Sir Keir claimed victoriously, saying the deal will slash tariffs, boost wages, and offer opportunities for UK businesses, making it the biggest trade deal since the UK's hasty exit from the EU.
He also revisited the deal in a clash with Tory leader Kemi Badenoch over winter fuel payment plans. This comes after he accused her of hammering pensioners following the removal of winter fuel payments from millions of them. He sparred with her, saying, "Because of the work we've done, we are a country that countries like India want to do deals with... because of the messages and the work that we have done."
Downing Street is mum on estimating how the UK-India trade deal might affect immigration or tax take in Britain. Asked whether there was an assessment on the impact on migration numbers due to the agreement, the Prime Minister's official spokesman said, "We don't do individual line-by-line assessments on free trade deals."
Labour shadows accused the agreement of putting hardworking Brits and British companies at a competitive disadvantage against Indian companies bringing in Indian workers. Shadow business secretary Andrew Griffith warned, "Indian workers will pay less tax than their British counterparts, creating a two-tier system and disadvantaging Brits."
Despite the criticism, Mr. Reynolds said the deal's critics were "confused" and suggested unhappy Tories were simply jealous they didn't manage to snag a similar deal when they were in power. He noted that the UK has similar deals with 50 other countries, including the US, Japan, Chile, and more.
So there you have it, mate. The UK-India free trade deal—a bloody great win for Britain, despite the whining from the Tories. Keep your eyes peeled for more details on this deal, 'cause there's bound to be more where that came from.
References:
1. Government of the United Kingdom: UK-India Free Trade Agreement, 2025 https://www.gov.uk/government/publications/uk-india-free-trade-agreement
- The UK-India free trade deal, announced on the 6th of May, 2025, is a significant win for Britain, as highlighted by Prime Minister Keir Starmer today.
- Starmer used Prime Minister's Questions to counter Tory criticisms, stating that the £5 billion agreement was the largest made by the UK since the Brexit debacle.
- The agreement includes a reciprocal sweetener for UK workers in India, aiming to avoid double taxation.
- However, critics argue that this arrangement creates a "two-tier" system favoring Indian workers.
- The business secretary Jonathan Reynolds, the agreement's architect, has defended the deal, claiming that the critics are confused and envious of the arrangement.
- The OBR (Office for Budget Responsibility) has not provided estimates on how the UK-India trade deal might impact immigration or tax take in Britain.
