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Labour has insisted the UK’s new trade deal with India does not undercut British workers after the Conservatives claimed the government are introducing “two-tier taxes”.
The new deal – similar to those already in place with more than a dozen other countries – will immediately cut tariffs on whisky, gin, cars and cosmetics, while reducing barriers to imports of Indian textiles, food and jewellery.
But opposition politicians criticised a provision in the deal exempting some temporary Indian workers from national insurance payments, claiming this would undercut British staff.
The Tories seized on the national insurance contribution (NICs) exemptions as an example of what they claimed was “two-tier taxes” under the Labour government.
Trade secretary Jonathan Reynolds rejected the claims, telling the BBC they are “completely false”.
The row comes ahead of PMQs today, with Keir Starmer set to face a grilling on the newly-struck agreement. It also marks the first session since both Labour and the Conservatives suffered heavy losses at the local elections and by-election last week.
Starmer seen leaving for PMQs when he's to be grilled over UK-India trade deal and local elections
Tara Cobham7 May 2025 11:35
US-UK trade deal with lower tariffs on cars and steel ‘could be signed this week’
The UK has been in talks with the Trump administration as part of an attempt to agree a carve out from tariffs, which are wreaking havoc on the global economy.
Trade negotiators have returned to Washington this week and officials told the Financial Times that the trade deal could be agreed in the next few days.
Political correspondent Millie Cooke reports:
Tara Cobham7 May 2025 11:30
Reform also gains ground in Wales while support for Labour collapses, YouGov poll reveals
Reform UK has also gained ground in Wales while support for Labour has collapsed, according to a new YouGov poll.
While Plaid Cymru leads the race for next year’s Senedd election, according to the YouGov/ITV Wales Welsh voting intention poll, Nigel Farage’s party is now in second place, with Labour far behind.
Plaid Cymru lead on 30 per cent of the vote for the May 2026 Senedd election, while Reform sits at 25 per cent, the figures revealed.
Meanwhile, Labour, who have won every previous devolved election, is in a distant third place on just 18 per cent, which is half the 36 per cent of the regional vote that they won back in 2021.
The Conservatives are even further back, sitting at only 13 per cent, which also marks half their vote share in the 2021 election.
Then the Lib Dems take 7 per cent, while the Greens sit at 5 per cent.
Tara Cobham7 May 2025 11:19
Watch: UK-India deal does not undercut British workers, says trade secretary
Tara Cobham7 May 2025 11:00
Government refuses to be drawn on reports UK closing in on US trade deal
The government has refused to be drawn on reports the UK is closing in on a trade deal with the US.
The Financial Times reported an agreement could soon be reached that involves lower tariff quotas for cars and steel.
But a government spokesperson told The Independent: “The US is an indispensable ally and talks on an economic deal between the US and the UK are ongoing - but we are not going to provide a running commentary on the details of live discussions or set any timelines.
“We will continue to take a calm and steady approach to talks and aim to find a resolution to help ease the pressure on UK businesses and consumers.”
Tara Cobham7 May 2025 10:45
Government insists deal will involve 'no impact' on immigration system or numbers
The government has insisted the new UK-India trade deal will involve “no impact” on the immigration system or immigration numbers.
The agreement includes some easing of rules on “business mobility” for temporary visitors and up to 1,800 chefs, yoga instructors and musicians providing contracted services.
Tara Cobham7 May 2025 10:40
Full story: Red Wall MPs demand Starmer ‘acts now’ to reverse winter fuel cuts as backlash grows
There has been growing public anger over the policy after Labour suffered a disastrous result at last week’s local elections, which saw Reform pick up 10 councils and more than 600 seats.
The Red Wall group of Labour MPs, made up of around 45 MPs from Red Wall constituencies, warned that Sir Keir’s response that he would "go further and faster" in delivering his plans had "fallen on deaf ears".
Political correspondent Millie Cooke has the full story:
Watch: Northern female MPs target of hostile media briefings from people working in No. 10', says former Labour minister
Tara Cobham7 May 2025 10:00
What is national insurance aspect of UK-India trade deal – and row that's broken out over it
Under the terms of the UK-India trade agreement, staff working for an Indian company who transferred to the UK for less than three years would pay into the Indian social security system rather than paying into both British and Indian systems as they do now.
UK workers temporarily in India would remain subject to national insurance, but be exempt from Indian social security levies.
Trade secretary Jonathan Reynolds pointed to similar deals with 50 other countries, including the EU, the US, Canada and Japan, saying that the previous Conservative government signed a similar deal exempting Chilean workers from national insurance for five years.
Seconding Indian staff to the UK will also involve additional costs such as the immigration health surcharge and relocation costs, Mr Reynolds said.
He added that the overall impact of the deal would mean more tax revenue for the treasury, and said he expected more UK workers to be seconded to India as a result of British companies gaining access to Indian government procurement contracts.
However, Kemi Badenoch claimed she had “refused to sign this deal” while trade secretary, in part due to the condition that some Indian and British workers will avoid paying national insurance for the first three years in their destination country.
Tara Cobham7 May 2025 09:45
Red Wall MPs demand Starmer 'acts now' to reverse winter fuel cuts as backlash grows
Labour’s group of Red Wall MPs have demanded Keir Starmer “acts now” to reverse winter fuel cuts as backlash against the prime minister grows in the wake of the party’s local election losses.
In an open letter, they also said Sir Keir’s “further and faster” pledge on his Plan for Change has “fallen on deaf ears”.
Tara Cobham7 May 2025 09:26
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