Trade Negotiations

Harriett Baldwin Excerpts

Tuesday 6th May 2025 Commons Chamber

[Dame Harriett Baldwin (West Worcestershire) (Con)]

I thank the Minister for advance sight of his statement. This deal marks a landmark moment for the UK and its global trading relationships because it is the largest trade deal secured by this country. I was therefore shocked that the Minister did not acknowledge that progression of the deal was possible only thanks to our Brexit freedoms. After all, the European Union does not have a free trade agreement with India—something the Minister must bear in mind as he follows the orders of the Prime Minister on the EU reset.

We have not seen the minutiae of the detail in the agreement that the Government are announcing today, so we will reserve our full judgment on the deal until we have had the opportunity to scrutinise it at length. However, I will take this opportunity to highlight some questions. First, what concessions did the Government make that their predecessors were not willing to make to get the deal over the line?

Secondly, I was shocked that a very significant piece of information was left out of the Minister’s statement today—one that we only found out from the Indian Government’s statement. Why did Indian Prime Minister Narendra Modi make a point of announcing the agreement of a double contribution convention between India and the UK, while the Minister has not even made a passing reference to it today in his statement or his press release? A double contribution convention will come at a significant cost to the British taxpayer and British businesses. Workers who enter the UK under such conventions are eligible to only pay national insurance contributions in their home country—in this case, India.

Again, we only know from the Indian Government’s press release that the exemption for national insurance contributions for Indian workers will be for three years. Does that mean that Indian workers currently in Britain will get a refund from His Majesty’s Revenue and Customs, or does it mean that new Indian workers will not pay any contributions in the first place? Did the Exchequer effectively give away a massive subsidy to get this trade deal over the line? Will it really be 20% cheaper for businesses in the UK to hire Indian workers than British workers? Will the convention apply only to seconded employees of Indian companies, or will it apply more broadly to all Indian workers in the UK, and if so, from when? How many additional work visas will be issued to Indian workers under this agreement? Will the convention really mean that, for example, an Indian-owned restaurant chain in the UK could pay no national insurance here for its chef, while the British pub next door pays full national insurance for its curry chef?

Will this deal reduce the incentive for the Indian millionaires who are currently fleeing the UK for tax reasons—a subset of the many millionaires who are doing the same—to do so? Can the Minister outline what the cost of this agreement is to the Treasury? How many British nationals do the Government anticipate will make use of the reciprocal rights in India? I fear that when it comes to British workers, we have gone from two-tier Keir to two-tier-taxes Keir. This Government are literally putting up taxes for British workers while cutting them for Indian workers.

I am aware that India has expressed concerns about the UK becoming a rule-taker to the EU, so will the Minister confirm what commitments and assurances he made on that matter during the negotiations? While Conservative Members will never talk down the benefits of free trade, agreements such as this one have to be made on fair terms for both parties. As it stands, this deal looks like it is subsidising Indian labour while undercutting British workers. Will the Government back our domestic market by scrapping their jobs tax?

I look forward to hearing from the Minister a reply that actually answers these questions. If he chooses—as he sometimes does—to bat away genuine questions from the Dispatch Box, could he follow up in writing?