World

UK dismisses idea that British workers being sold out in India trade deal

Opposition parties complain about concessions to Indian workers amidst UK and India agreeing to trade deal amid U.S. tariff turbulence

Updated 1 year ago · Published on 08 May 2025 9:19AM

UK dismisses idea that British workers being sold out in India trade deal
PM Starmer says claims are 'incoherent nonsense' - May 8, 2025

BRITISH Prime Minister Keir Starmer on Wednesday dismissed the idea that he had sold out British workers by giving a tax break to some Indian workers as part of a free trade agreement with India, calling the claims "incoherent nonsense".

Reuters reported today that the trade deal announced on Tuesday, which includes a range of tariff cuts on British imports to India, also exempts some short-term workers from India from paying into Britain's social security system for three years.

The exemption under the so-called Double Contributions Convention (DCC) also applies to British workers in India, but while Britain barely made mention of this element of the trade deal, India hailed it as a "huge win".

British opposition parties accused the government of signing up to a deal that would unfairly benefit India.

"Our India trade deal ... is good for British jobs. The criticism on the double taxation is incoherent nonsense," Starmer told parliament. "It's in the agreements that we've already got with 50 other countries."

Britain has social security agreements with the European Union and countries including Switzerland, Canada, Japan and Chile, with some deals allowing for five-year exemptions, which ensure migrant workers are not taxed in two countries at one time. India also has similar agreements with other nations.

Britain expects the DCC agreement with India to cost around 100 million pounds ($133 million) a year.

Social security, known as National Insurance in Britain, is the country's second-biggest tax, which raises over 170 billion pounds in government revenue through employee and employer contributions.

Earlier, Britain's Trade Minister Jonathan Reynolds said that the changes would affect only a "very small number" of people.

Nigel Farage, the leader of Reform UK, which is currently leading in the opinion polls, said the government had "sold out British workers".

He said that Indian workers and firms would pay 20% less tax than their British counterparts.

Indian officials have said the social security exemptions would benefit Indian information technology companies operating in Britain, which often transfer employees to the country on short-term contracts.

The thousands of faithful in St. Peter's Square on Wednesday evening were all watching for this moment: black smoke.

Official data shows Britain granted more than 81,000 work visas to Indians last year, more than any other nationality, although many represent health and care or other non-temporary workers who would still be expected to pay social security in Britain. - May 8, 2025

Spotlight

Malaysia

Five fatal helicopter crash victims honoured in Sarawak state awards

Malaysia

No Malaysian is left behind; Budget 2027 puts people first - Anwar  

Malaysia

Panama hit by 6.4-magnitude earthquake

Malaysia

Haze blankets 33 areas with unhealthy air

Malaysia

Malaysia’s 2027 Budget is a steady one: people-oriented continuity rather than bold reform

Malaysia

Budget 2027: What is in it for me?

Malaysia

Budget 2027 steps up Sabah, Sarawak funding by RM2.2b amid push for development parity

Malaysia

Budget 2027: Maternity leave entitlement increased, minimum pension raised to RM1,350

You may be interested

World

Indonesia forest fire hotspots plunge 67%, but haze and dry weather risks persist

World

Anak Krakatau raised to second-highest alert after 13 eruptions

World

Gaza ceasefire leaves 2.1 million Palestinians squeezed into 35% of territory as attacks continue

World

US to livestream Nidal Hasan’s firing squad execution on December 3

World

Trump weighs joining Saudi strikes after deadly Houthi attack on Riyadh airport

World

Trump calls for Zelenskiy’s removal after deadly Russian strike kills 20 in Ukraine

World

Trump attacks Norway after Nobel Peace Prize goes to Navi Pillay

World

Explosions rock Riyadh airport as Yemen’s Houthis claim missile attack