Cabinet Office Minister Douglas Alexander has defended the National Insurance exemption handed to Indian migrants in the UK’s new trade deal
Keir Starmer has been accused of giving Indian migrants huge tax breaks after today’s historic trade deal provided National Insurance exemptions to professionals moving to the UK. The deal, which is expected to boost growth by £5billion, was hailed as the the “biggest and most economically significant” accord since Brexit.
However, Indian professionals living in Britain look to have been spared from paying National Insurance in the UK as well as at home for three years.
Hailing the concession, New Delhi said: “In an unprecedented achievement, India has secured an exemption for Indian workers who are temporarily in the UK and their employers from paying social security contributions in the UK for a period of three years under the Double Contribution Convention. This will make Indian service providers significantly more competitive in the UK.”
Responding directly to the concession, the Centre for Migration Control said: “This deal hands far too many concessions to Indian workers – awarding an exemption from national insurance contributions. We are through the looking glass. HM Government is now raising taxes on Brits whilst slashing them for migrants.”
Shadow Business Secretary Andrew Griffith added: “Keir Starmer has just signed a deal which exempts Indian workers transferred to the UK from paying National Insurance… after increasing it for British workers. Every time Keir Starmer negotiates, Britain loses.”
Tory leader Kemi Badenoch also accused the Prime Minister of “two-tier taxes”, warning: “When Labour negotiates, Britain loses.” The decision comes just months after Rachel Reeves hiked employers’ National Insurance Contributions in her Budget tax raid. Despite facing a backlash over tax breaks, the Prime Minister remains adamant that the UK stood its ground on the issue of visas.
He said: “There were tough negotiations on both sides, as you would expect, but because we were serious and pragmatic and providing the leadership to our negotiating teams, we were able to resolve the difficulties that have held this up for the best part of eight years. And my approach to the negotiations, my instruction to the team was, we will always act in our national interest and make sure that this is a deal that works for Britain, and that’s what we’ve been able to produce. That’s what we’re able to deliver today.”
Cabinet Office Minister Douglas Alexander has defended the National Insurance exemption handed to Indian migrants in the UK’s new trade deal. Alexander told MPs: “About the double contribution convention – that is, I can assure her, a reciprocal agreement which will benefit UK workers and their employers as the opportunity within India expands.”
“India is going to be one of the world’s largest middle-classes in the coming decades. The agreement will only cover a very specific and limited group of Indian business people for a period of three years. Alexander added that the deal “is reciprocal and will benefit UK workers in India as well”.
Meanwhile, Nigel Farage has been left fuming after the details surrounding the UK’s trade deal with India showed a staggering concession around National Insurance.
Responding to the decision to hand Indian workers exemption from NICs, the Reform UK leader said: “If you look at the detail, it’s truly extraordinary.” He added: “This Government doesn’t give a damn about working people.
“The Labour Party have this time in a big, big way betrayed working Britain, and that’s why many people voted for us last Thursday, but for some reason the Government just doesn’t seem to understand. Reform UK are the party of British workers. This deal is truly appalling and I think what you’ll see is Starmer’s ratings in the polls plummet further.”
Shadow Justice Secretary Robert Jenrick has joined Suella Braverman in lashing out at Sir Keir Starmer’s trade deal with India.
Taking to social media, Jenrick said: “This trade deal means Indian workers here for less than 3 years will not pay National Insurance in the UK. Starmer has hiked National Insurance on Brits while giving an exemption to Indian migrants. British workers come last in Starmer’s Britain.
“Suella Braverman and I refused to accept unfair and unreasonable visa demands in the negotiation with India. Starmer has taken over and capitulated straight away. This will hurt British workers and encourage even more immigration when it is already ridiculously high.”
