Wed, 07 May 2025

Wed, 07 May 2025 British workers will not be undercut in UK-India trade deal, government says

Opposition parties claim the new trade agreement means Indian workers will be cheaper for employers to hire.

* The UK government has agreed a trade deal with India, but opposition parties claim it could disadvantage British workers.
* The deal extends an exemption on national insurance contributions (Nics) from one to three years for people on short-term visas working abroad.
* This means Indian workers may be cheaper to employ than British workers, particularly since UK employer Nics have just risen.
* Business Secretary Jonathan Reynolds says the deal will not impact British workers and that there are 16 agreements preventing double taxation of work covering more than 50 countries.
* The deal will make it easier for UK firms to export goods including whisky, cars, and clothing to India and cut taxes on Indian exports to the UK.
* Trade between the two countries is expected to increase by an additional £25.5bn a year by 2040.
* The Scotch Whisky Association says the deal could increase Scotch exports to India by £1bn over five years, creating 1,200 jobs across the UK.
* The deal will also provide guaranteed and unprecedented access to India's vast procurement market for UK firms.
* Business Secretary Jonathan Reynolds says the deal is a "huge economic win" for the UK and will deliver faster growth, higher wages, and more tax revenue.
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