BROMSGROVE MP Bradley Thomas has accused the Government of selling out British workers after agreeing a trade deal with India.
The deal agreed on Tuesday (May 6) between the UK and India exempts Indian workers transferred to the UK from paying National Insurance after the chancellor hiked it up for British workers.
The Leader of the Opposition, Kemi Badenoch, who served as Business and Trade Secretary in the previous Government, refused to sign the deal because the tax refunds for Indian workers are not available to British workers.
In responding to the deal, Mr Thomas said: “It’s astonishing that the Government has signed a trade deal with India which exempts Indian workers transferred to the UK from paying National Insurance after increasing it for British workers. Quite frankly they have sold out British workers.
“I’m sure this announcement will stick in the throat of businesses in Bromsgrove who have just had their Employer National Insurance contributions hiked by the Government.
“Whose side is this Government on? I’m on the side of local businesses.
“The Government’s negotiation over the Chagos Islands and public sector pay deals show this is just the latest damming example of how, when a Labour Government negotiates, Britain loses.”
Under the deal, UK workers in India and Indian workers in the UK will only pay tax in their country of origin. Indian workers transferred to the UK – and their employers – won’t have to pay national insurance contributions for three years.
The trade deal has also reduced import and export costs for both nations, while India has agreed to reduce its high import taxes for various goods potentially making UK products more competitive on Indian shelves.
Business Secretary Jonathan Reynolds told the BBC there was “no situation” in which he would “ever tolerate” British workers being undercut as a result of a trade agreement.
He said the deal would not impact British workers, pointing out the UK has 16 agreements preventing double taxation of work, which cover more than 50 countries – including the US, EU and South Korea.
