The India deal may prove a hard sell for Sir Keir
After three years of negotiations, Britain and India have at last agreed a trade deal. The UK will slash tariffs on imports from India and India will do the same for British exports, including whisky, cars, medical devices and much else.
The deal is good news for British consumers and exporters, a boost for free trade in an increasingly protectionist world, and a triumph for the Brexit vision of reorienting trade away from the stagnating European continent. The Remainer claim that we would be stuck behind Brussels in the queue for future deals has been discredited.
The problem for Sir Keir Starmer is that his woeful record on tax and migration will make it difficult for him to sell this deal to the public. One of the sticking points in negotiations had been the taxation of Indian workers temporarily posted to Britain by their employers. Yesterday's deal granted these workers an exemption from paying National Insurance contributions in the UK so long as they pay the equivalent tax in India.
Such an arrangement could have been sold as a sensible move to avoid workers being taxed twice and, indeed, Business Secretary Jonathan Reynolds attempted to portray it as such, noting that we already have 17 similar deals, including with the EU, US and South Korea.
On the heels of last Autumn's National Insurance raid, however, and concern over the volumes of both legal and illegal immigration, it is potentially politically toxic. Indeed, Conservative leader Kemi Badenoch has wasted no time in accusing Sir Keir of introducing a system of 'two-tier taxes', with his deal being portrayed by Reform and the Tories as granting tax cuts for some migrants, even as British workers face tax hikes.
Concerns are also being raised over the potential impact on migration. The Indian government's own statement announcing the deal claimed that it 'eases mobility' for Indian workers, and secures 'immense opportunities' for Indian youth in the UK. Mr Reynolds, however, asserted it would have 'no impact' on Britain's immigration system, besides a small number of workers accessing a visa capped at 1,800 per year. Given the Government's record, many will wish for more solid assurances that this deal does not amount to liberalisation of visa policy by the backdoor.
The economic benefits of this deal should have seen it welcomed by all quarters. It is a deep shame that Labour's dysfunction has overshadowed what may prove to be a great Brexit victory.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
23 minutes ago
- Reuters
VIEW Analysts react to US-China trade agreement
SINGAPORE, June 11 (Reuters) - U.S. Commerce Secretary Howard Lutnick said that a trade framework and implementation plan agreed with China in London should result in restrictions on rare earths and magnets being resolved. China's Vice Commerce Minister Li Chenggang said earlier the two teams had agreed on implementing their Geneva consensus and would take the agreed framework back to their leaders. QUOTES: CHRIS WESTON, HEAD OF RESEARCH, PEPPERSTONE, MELBOURNE: "The devil will be in the details but the lack of reaction suggests this outcome fully expected. "While clearly a positive outcome, the lack of reaction in S&P500 futures, and the incremental moves seen in CNH or AUD, suggests achieving the framework on the Geneva agreement was fully expected – the details matter, especially around the degree of rare earths bound for the US, and the subsequent freedom for US produced chips to head East, but for now as long as the headlines of talks between the two parties remain constructive, risk assets should remain supported. "The reaction in Chinese equities could be telling and I suspect US equity futures will track developments here closely today."
BBC News
24 minutes ago
- BBC News
Ban 'no ball games' signs to get children off devices, play experts say
Play experts want to ban "no ball games" signs and protect playtime during school breaks, to reduce the time children spend on are being forced "indoors on to digital devices", according to the Raising the Nation Play Commission, whose year-long inquiry calls for an end to "anti-play culture".It warns outdoor play in England has declined by 50% in a generation because of streets dominated by traffic, fear about crime and "public spaces where young people are not welcome".The government says it is working with experts to develop a framework to improve access to activities outside of school. The report is calling for a national Play Strategy for England and has made a number of recommendations including:A national ban on "no ball games" signsUpdating planning policy to require developers to consult with children on all new developmentsGovernment guidance protecting play at break time and lunchtime in schools and banning practices like withdrawing playtime for poor behaviourOpening up school playgrounds to the community outside of school hoursRaising the digital age of consent to 16 and a ban on phones in schoolsChair of the commission, Paul Lindley, says in England "we've made it incredibly hard for children to play"."Creating truly playful communities is not just about better street design, traffic management, and reduced crime, but also about a reversal of the growing culture of intolerance towards children playing."In London, there are more than 7,000 signs limiting play for more than half a million children, according to the councils are beginning to remove signs amid concerns that children are exercising less. For Samantha and her four-year-old son Chester, who live in Blackpool, having a playground far away from traffic is vital."It's free," she says and it's somewhere her son can play without having to worry "about someone coming to tell him he can't"."A lot of children are growing up and don't have the opportunity to be able to go to other places or travel, so having somewhere close to home, that is free, is so important."More than 400 playgrounds closed in England from 2012 to 2022 and annual park budgets have fallen, the report Better Start, which helps families with young children like Chester, has been working to transform the city's less used parks and green spaces over the last ten years."It is so important for families to have safe spaces to play. Families identify with the park. They feel a sense of ownership and they feel like it belongs to them," director Clare Law explains. And there are calls for changes in schools 1995, break times in schools were around 23 minutes longer for young children than they are now, the report found. The commission wants to see playtime during breaks and lunchtime at St Ambrose Catholic Academy in Liverpool are guaranteed an hour's quality play every Tracy Moorcroft says it is a massive part of the school day."If they are building, we see them as future architects, if they're in the kitchen, could they be the next future chef? We try to link their play with aspirations for later in life."But Ms Moorcroft is less convinced about the idea of having "always-active uniforms" which have already been introduced in some says the school has "very high standards" for the uniform, as the children are being prepared for life beyond the get to wear their PE kit some days and wear wellies and coats so they can go outside regardless of the weather. General Secretary of the Association of School and College Leaders, Pepe Di'Iasio agrees that playtime has been squeezed "by the drive to improve academic outcomes", but cautioned against an "overly prescriptive approach to play" as this may impact on other areas of the Wales and Scotland have already made it a legal requirement for local authorities to ensure enough opportunities for children to commission in England is calling for a national play strategy with an annual budget of £125m, led by a minister with a responsibility for Anne Longfield from the Centre for Young Lives think tank, who worked on the report, said it should provide a "blueprint for how we can get children playing again and also tackle the scourge of addictive doom-scrolling".A government spokesperson said its Plan for Change was "setting young people up to achieve and thrive – both inside and outside the classroom", and that it is investing in grassroots sports facilities and in a programme to help turn "grey school spaces green". "From July, new rules under the Online Safety Act will require social media platforms to protect children in the UK from seeing harmful content online," the spokesperson reporting by Hayley Clarke and Rahib Khan
Glasgow Times
29 minutes ago
- Glasgow Times
Starmer and Reynolds meet US commerce secretary in push to implement trade deal
The Prime Minister dropped in on a meeting between Howard Lutnick and Business Secretary Jonathan Reynolds in Downing Street on Tuesday. Mr Lutnick was in London for talks with China on resolving the trade war between Washington and Beijing, and Mr Reynolds took the opportunity to meet him in person to push for the UK-US trade deal announced last month to be implemented as soon as possible. The meeting follows talks between the Business Secretary and US trade representative Jamieson Greer in Paris last week. Under the terms of the agreement announced by Sir Keir and Donald Trump, the US will implement import quotas that will effectively eliminate tariffs on British steel and cut the levy on vehicles to 10%. But the deal has yet to be implemented and tariffs on both steel and cars remain at 25%, although the UK has been spared the increase on steel duties to 50% that Mr Trump imposed on the rest of the world last week. In a post on social media, Mr Reynolds said he had discussed 'progress on our trade deal – including UK autos and steel' with Mr Lutnick. UK officials remain hopeful that the deal will be implemented soon, but Tuesday's meeting does not appear to have moved the issue beyond both sides agreeing the need to move quickly. Speaking in the Commons last week, Sir Keir said he was 'very confident' that tariffs would come down in line with the deal 'within a very short time'. Implementing the deal will require the UK to pass legislation, likely to involve regulations rather than a full Act of Parliament, while the US will also need to create a legal mechanism to bring steel and vehicle quotas into effect.
