Jonathan Reynolds faces BRUTAL questioning on UK-India trade deal amid ‘two-tier’ claims: ‘Betraying British workers!’
Business Secretary Jonathan Reynolds faced intense questioning on GB News yesterday over the newly unveiled UK-India trade deal.
The questioning came after accusations that the deal creates a “two-tier tax system” that “betrays British workers.”
The landmark agreement, announced yesterday, is being hailed as the most significant trade deal Britain has negotiated since Brexit.
Officials say it will boost UK GDP by £4.8billion annually and add £2.2bn to wages in the long run.
Jonathan Reynolds, the Business Secretary, told GB News: “Absolutely not, and I’m delighted to clear this up unequivocally.
“Let’s be clear: if you’re an Indian national in the UK and you apply for a job and a British person applies for the same job you pay exactly the same tax.
“This is a very specific arrangement that already exists with around 50 other countries. It means that if you’re an Indian national temporarily seconded to the UK, or a UK national temporarily seconded to India, you don’t have to pay into both countries’ tax systems.
“If you’re a UK citizen working temporarily in India, you pay into the UK system. If you’re an Indian national working temporarily here, you pay into theirs.
“It simply makes it easier to move people between countries for short-term business purposes. But we would never agree to any deal that undercuts British workers or creates a two-tier tax system.
Ellie responded: “But for British businesses, if there’s no National Insurance to pay, won’t it be cheaper to hire Indian workers rather than British workers?
“And this is happening at a time when the Labour government is trying to get more people into work. It just seems counterintuitive, doesn’t it?”
He replied: “No, that’s not the case. Again, no one is being undercut by this arrangement. It simply means UK nationals pay into our system, and Indian nationals pay into theirs, if they’re temporarily seconded for business mobility purposes.”
The deal is expected to increase trade by £25.5billionFlickr
The pact will slash punishing Indian tariffs on British goods including Scotch whisky, chocolate, medical devices and UK-made cars.
Under the deal, tariffs on whisky and gin will be cut from 150 per cent to 75 per cent, before falling to 40 per cent over the next decade.
Automotive tariffs on British-made cars like Jaguars and Land Rovers will tumble from over 100 per cent to just 10 per cent under a new quota system.
Prime Minister Sir Keir Starmer said: “We are now in a new era for trade and the economy. That means going further and faster to strengthen the UK’s economy, putting more money in working people’s pockets.”
