Oral Answers to Questions

Nick Timothy Excerpts

Tuesday 20th May 2025 Commons Chamber

[Torsten Bell]

What is anti-growth is the Conservative party, which sat over 15 long years of decline and completely unprecedented economic stagnation. Our job is to support the hospitality and leisure sector more generally. That is why we are reducing red tape through the cross-Government licensing taskforce; why we are permanently cutting business rates, moving away from the year-by-year chaotic system put in place by the Conservative party; and why we are engaging all the time with the Hospitality Sector Council.

[Nick Timothy (West Suffolk) (Con)]

6. What assessment her Department has made of the potential impact of the double contributions convention in the UK-India free trade agreement on levels of tax revenue.

[The Chancellor of the Exchequer (Rachel Reeves)]

The trade deal that we have secured with India adds around £5 billion to the UK economy. On social security contributions, if somebody who works for an Indian business is posted to the UK, or someone from a UK business is posted to India, they will not pay two lots of contributions: if you are paying into the Indian provident fund in India, you will not be paying national insurance contributions here; and if you are paying national insurance contributions here, you will not be paying into the Indian provident fund. On top of that, to come to the UK to work from India you will need to pay just over £3,000 for the NHS surcharge to be able to access those services and £769 in visa fees, contributing to the UK Exchequer.

[Nick Timothy]

I note that the Chancellor did not actually address the point of the cost to the Exchequer of the double contributions convention, which the Government has agreed with India. Indian workers sent here by their employers on intra-company transfers cost more in taxes than British workers, but that flips under this deal: Indian workers will be taxed less and cost less to employ than British rivals for doing the same jobs. That will not only cost the Treasury lost revenue, which the Chancellor did not admit, but displace British workers, suppress wages and increase immigration. Will the Chancellor commit now to monitoring the effects of the agreement and, if the data shows any of that happening, promise to scrap this charter for immigration with India?

[Rachel Reeves]

This deal is worth £5 billion to the UK economy, and it also benefits British workers being posted by their company to work in India. The Conservatives are now in the absurd situation of opposing the US deal, the India deal and the deal with the EU. They are simply not serious. The India deal reduces tariffs on Scotch whisky by more than half and brings into the UK more good jobs paying decent wages—the Conservatives seem to be against that.