Jonathan Reynolds said Tory attacks of the deal were ‘absolutely false’ and that Kemi Badenoch’s party, as well as Nigel Farage’s Reform UK, were ‘confused’ about the situation.
Jonathan Reynolds quizzed over India trade deal on Sky News
The Business Secretary has insisted Indian workers will not pay less tax than British people amid a row over a trade deal signed between the two nations.
Jonathan Reynolds said Tory attacks of the deal were “absolutely false” and that Kemi Badenoch’s party, as well as Nigel Farage’s Reform UK, were “confused” about the situation.
Opposition parties last night attacked the UK-India trade deal, which was finally signed after three years of negotiations. They claimed British workers could be undercut after Indian workers on short-term visas were given an exemption from paying national insurance contributions for three years.
But Mr Reynolds insisted they were wrong. Asked whether the agreement meant Indian workers paying less tax than British counterparts doing the same job, the Cabinet minister told the BBC’s Today programme: “No.”
READ MORE: Keir Starmer announces trade deal with major country after Boris Johnson’s failure
He added: “There is no situation where I would ever tolerate British workers being undercut through any trade agreement we would sign. That is not part of this deal.
“What the Conservatives are confused about, and Reform as well, is a situation where a business in India seconds someone for a short period of time to the UK, or a UK business seconds a worker to India for a short period of time, where you don’t pay in simultaneously now to both social security systems.”
He continued: “This is exactly the sort of deal we have with 50 countries already, with the US, Canada, Japan, South Korea, New Zealand. The Conservatives recently, well a few years ago when they were in government, signed one with Chile for five years. So no, British workers are not being undercut.”
Mr Reynolds added to Sky News: “To present this as something that is undercutting British workers, or unique to India is absolutely false.” He said the Conservatives’ criticism was because the party is “unable to accept” that the Government has “done what they couldn’t do”.
The Trade Secretary said: “This is not a tangible issue. This is the Conservatives – and Reform – unable to accept that this Labour Government has done what they couldn’t do and get this deal across the line. This is presenting a false reason why they couldn’t (do it).”
The government yesterday announced a UK-India trade deal had been signed, three years after Boris Johnson failed to deliver on the promise of one. Ministers said the new trade deal will slash Indian tariffs on key UK products such as whisky, gin, cosmetics and medical devices.
The Department for Business and Trade said the cut in tariffs will be worth over £400million when the deal comes into force – doubling to £900million after 10 years. It said shoppers could see cheaper prices and more choices on clothing and footwear.
READ MORE: Join our Mirror politics WhatsApp group to get the latest updates from Westminster