Government Defends NI Discharge in UK-India Trade Deal

The UK government has responded to criticism by opposition parties that the newly-signed trade agreement with India could put British workers at a disadvantage.

Business Secretary Jonathan Reynolds told the BBC there was "no scenario" where he would "ever accept" British workers being undercut due to a trade agreement.

One aspect of the package offers an exemption from National insurance contributions (Nics) for a year, not three - which means individuals on short-term visas will only be paying social security in their own country when employed overseas.

The opposition parties argue this could result in Indian labour being less expensive to hire than British labour - not least as UK employer Nics have just increased.

Conservative leader Kemi Badenoch said she had turned down a similar deal when she was business secretary, because the deal involves "two-tier taxes" which would cost the UK "hundreds of millions".

Liberal Democrat deputy leader Daisy Cooper accused the exemption of "undercutting British workers at a time when they're already being hammered by Trump's trade war and Labour's jobs tax mistake".

Reform UK leader Nigel Farage labeled the deal as "truly appalling", stating: "This government doesn't care about working people."

However, Reynolds stated the deal would have no effect on British workers, citing the UK had 16 agreements against double taxation of work, which covered over 50 countries - such as the US, EU and South Korea.

"The Conservatives just recently, well a few years back when they were in power, inked one with Chile for five years. So no, British workers are not being undercut," he said.

"What the Conservatives are muddled about, and Reform too, is a scenario where an Indian business seconds someone for a temporary period to the UK, or a UK business seconds an employee to India for a temporary period, where you don't pay in at the same time now to both social security systems," he said to the BBC's Today programme.

Reynolds said the deal was a "huge economic win for the UK and would deliver "faster growth, higher wages, more tax revenue brilliant wins for goods and for services".

He previously stated that Indian workers would continue to have to pay the NHS immigration surcharge and would not be able to receive benefits from the National Insurance system.