Sir 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.”
