The right's attack on the India trade deal is opportunistic, envious fakery
The India-UK trade agreement is a good deal that will promote growth by a small amount – every little helps – but it is being attacked by the Conservatives, Reform and the right-wing press in a welter of hypocritical opportunism.
The deal's critics know perfectly well that it contains a sensible tax measure that will not increase the number of visas issued to Indians, but they have seized on the chance to put 'national insurance contributions' and 'cut' in the same sentence to pretend that this is favourable tax treatment for immigrants.
It is no such thing. The deal includes a clause that will extend protection from being taxed twice for Indian workers temporarily posted to the UK and for British workers temporarily posted to India.
These arrangements to prevent 'double taxation' are standard and already exist between Britain and many other countries. Indeed, one already exists between Britain and India, but it allows only one year of protection; that will now be increased to three years.
It means that Indian workers on short-term contracts who are posted to the UK and who continue to pay social security contributions in India will be exempt from paying national insurance contributions here for up to three years. And vice versa.
It does not mean that more Indian workers will come to Britain because the visa regime is unchanged. It does not mean that Indians will be treated more favourably than British workers because they will still be paying the equivalent of national insurance contributions at home.
It is a good deal for the taxpayer because it will make the UK more attractive to highly paid Indians who will pay more tax here as a result.
Kemi Badenoch knows all this, because she was trade secretary 10 months ago, leading the British negotiations on the deal. She says that she refused to agree to this tax change, which she would have done only on the grounds that it could look bad if it were misrepresented by political opponents.
Nigel Farage may not be so well versed in the detail but he too knows that the deal is a reasonable one. He also sees an opportunity, and the incentive structure of current politics means that he cannot allow Badenoch to outflank him.
As for Badenoch and Farage's cheerleaders in the press, they also know exactly what they are doing, but the temptations of headlines of 'tax cuts for immigrants' are too strong to resist.
One of the reasons that Badenoch and Farage advocated leaving the European Union was so that Britain could negotiate its own free-trade deals with countries around the world. Yet when the Labour government succeeds in a complex negotiation that protects the British national interest, especially on the sensitive subject of visa numbers, they pretend it is something it is not. 'I think what frustrates them is we've done a deal that they couldn't deliver on,' Jonathan Reynolds, the trade secretary, said this morning.
Reynolds can be faulted, possibly, for failing to prepare the ground with the British media; he appeared to have been taken by surprise by Narendra Modi, the Indian prime minister, suddenly announcing on Tuesday that the deal was done.
The attacks on 'two-tier tax' were already all around the world on social media before the Labour Party's rebuttal machine had got its boots on.
The bottom line is that this is a good deal and its critics ought to be ashamed of themselves. Are Badenoch and Farage now going to demand to scrap double taxation agreements with 50 other countries? Of course not. They ought to join principled free-trade Brexiteers such as Daniel Hannan, the Tory peer, in welcoming the deal. He said on Tuesday: 'A comprehensive deal in goods and services is a win-win. A pity to see so much misinformation about it tonight.'
Then they should congratulate Keir Starmer and Jonathan Reynolds on securing a trade deal with the US, which according to the Financial Times might be announced this week, and then another with the EU, which will be unveiled at a summit at Lancaster House in two weeks' time.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Times
10 minutes ago
- Times
Business live: US and China reach deal to restore trade truce
Inditex, the owner of Zara, has reported worse-than-expected first-quarter revenue and a slower start to its summer sales. Revenue in the three months to the end of April was €8.27 billion, below analysts' forecasts of €8.36 billion. Inditex said revenue had risen 6 per cent at the start of the second quarter, compared to 12 per cent growth over the same period a year ago. The board of Assura, a real estate investment trust which is one of the NHS's biggest landlords, is recommending shareholders accept a 'final' offer from KKR and Stonepeak, the American private equity firms, following a contested takeover battle for the group. The consortium has raised its offer for the company to nearly £1.7 billion, or 52.1p a share, outbidding rival suitor Primary Health Properties. Assura owns hundreds of doctors' surgeries around the UK. Bid interest has lifted the shares 24 per cent over the past year to 49p last night. US and Chinese officials have agreed on a framework to put their trade truce back on track and remove China's export restrictions on rare earth metals and some of the recent US export restrictions. However, market reaction in Asia was muted as there was little detail after the two days of talks concluded around midnight in London. Tokyo's Nikkei 225 and China's SSE Composite were both up around 0.6 per cent. US commerce secretary Howard Lutnick said: 'The idea is we're going to go back and speak to President Trump and make sure he approves it. They're going to go back and speak to President Xi and make sure he approves it, and if that is approved, we will then implement the framework.' • Entrepreneur Davina Schonle was left feeling 'humiliated' after she and her eight-month-old baby were refused admission to London Tech Week, a gathering of global technology leaders taking place at London's Olympia.• AstraZeneca has been accused of 'turning a blind eye' to the Chinese government and putting 'profits before people' as it invests billions in the country amid the long-running detention of a key executive.• A battle between listed technology company Big Technologies and its former chief executive has escalated as it suspended the voting rights of shareholders holding 17 per cent of its stock.• Britain's listing rulebook is not to blame for the shrinking of the London stock market, Nikhil Rathi, chief executive of the Financial Conduct Authority, told MPs.
The Independent
11 minutes ago
- The Independent
Government urged to disrupt ‘addictive grip' of smartphones on children's lives
The Government is being urged to create child-friendly playful neighbourhoods and disrupt the 'addictive grip' of smartphones on children's lives. Closures of playgrounds, busier roads, shortened school break times and the dominance of screentime have restricted children's opportunities to play, a report has suggested. Urgent action is needed to create more opportunities for children to play outdoors and away from digital devices and social media, according to a report by the Raising the Nation Play Commission inquiry. It warned: 'Too many of our children are spending their most precious years sedentary, doomscrolling on their phones and often alone, while their health and wellbeing deteriorates.' The commission was chaired by Paul Lindley, founder of organic baby food manufacturer Ella's Kitchen, in partnership with the Centre for Young Lives think tank, which was co-founded by the former children's commissioner for England Baroness Anne Longfield. It has called on the Government to establish a National Play Strategy for England, backed by an annual £125 million investment and led by a 'minister for play'. The strategy should include a commitment to a 'step-change' in the quantity and quality of children's use of digital devices through stronger regulation, public engagement and information, and addressing addictive 'push' factors that have driven children online, the report added. The inquiry has called on the Government to raise the digital age of consent to 16 and introduce a ban on smartphones in schools during the school day. It added that it should become easier for parents to organise 'safe play' in their streets, and there should be a national ban on 'No Ball Games' signs. A poll of 2,000 parents in England, commissioned by the inquiry, suggested that 55% of parents believe their youngest child plays outside less than they did when they were children. Around three in four (76%) parents agree that people are generally less accepting of children playing outside on the street than when they were a child, according to the poll. The Raising the Nation Play Commission brought together 19 expert commissioners to conduct a year-long inquiry into how play can be restored to every childhood in England. Lady Longfield, executive chairwoman of the Centre for Young Lives, said: 'Too many of our children are spending their most precious years sedentary, doomscrolling on their phones and often alone, while their health and wellbeing deteriorates. 'It is no coincidence that the least happy generation, the generation with the highest rates of obesity and rising ill health, is the generation that plays less and less. 'As we have heard from a swathe of experts and professionals working with children over the last year, play is being squeezed out of childhoods, with drastic implications for children, our economy and public services. 'With so much at stake children really have everything to play for: their health, wellbeing, happiness, learning, and development depends on our ability to reignite the role of play. 'This report provides a blueprint for how we can get children playing again and also tackle the scourge of addictive doomscrolling, so we can prevent future generations from becoming glued to screens.' Technology Secretary Pete Kyle has indicated he is considering an 'app cap' for children. On Sunday, the minister signalled he was looking at measures to restrict the amount of time children spend on their phones, including through a possible 10pm curfew. Mr Lindley, chairman of the Raising the Nation Play Commission, said: '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. 'This will also encourage more parents to have confidence they can let their children play out more freely, in the knowledge that their children will be both having a great time and are also safe. 'We need to give our children back the time, space, opportunity, freedom – and the right – to play again.' A Government spokesperson said: 'We recognise the vital importance of play and access to nature as part of children's development and wellbeing as we strive to create the healthiest and happiest generation of children ever. 'Through our Plan for Change, we are setting young people up to achieve and thrive – both inside and outside the classroom. 'We have given hundreds of thousands of children the tools to turn their grey school spaces green as part of our National Education Nature Park, we are opening up grassroots sports to all with £100 million investment in facilities and we are working with experts to develop a framework to improve access to activities outside of school. 'Schools already have the power to completely ban phones in the classroom and the overwhelming majority – 99.8% of primary schools and 90% of secondary schools – limit or restrict use. 'And 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.'
Reuters
19 minutes ago
- Reuters
KKR tables 'best and final' $2.3 billion offer to buy UK's Assura
June 11 (Reuters) - U.S. private equity firm KKR (KKR.N), opens new tab and Assura (AGRP.L), opens new tab have agreed on the terms of a "best and final" offer for the British healthcare real estate investor's sale, valuing it at nearly 1.7 billion pounds ($2.29 billion), the companies said on Wednesday. The latest proposal from KKR and private equity firm Stonepeak Partners of 52.1 pence a share including dividends trumps the 51.7 pence offered by rival suitor Primary Health Properties (PHP.L), opens new tab last month. Assura joins a growing list of UK companies being bought out and taken private by overseas private equity firms or investment companies, attracted by cheap valuations. ($1 = 0.7415 pounds)
