Yvette Cooper ‘Blindsided’ By Tax Break For Indian Workers In UK Trade Deal
Yvette Cooper was not told about plans to give Indian workers in the UK tax breaks as part of a trade deal between the two countries.
Home Office officials did not deny claims the department was “blindsided” by the move amid concerns it could push up immigration to the UK.
One said: “It’s tax policy, so was worked on in the Treasury.”
Labour MPs have also expressed their anger at the deal, which will exempt Indian workers seconded to the UK from India-based companies from paying National Insurance for three years.
One told HuffPost UK it had “gone down like a cup of cold sick” among those in Red Wall constituencies in the Midlands and north of England.
But another Labour MP said: “We need growth. This is one of the fastest growing economy in the world. The Tories talked about doing a deal but never delivered. This government has in less than 12 months.”
Opposition parties said the deal will make it cheaper for employers to take on Indian workers rather than British ones.
Reform UK leader Nigel Farage said: “This government doesn’t give a damn about working people. The Labour Party has this time in a big, big way betrayed working Britain.”
Tory leader Kemi Badenoch accused Keir Starmer of introducing “two-tier taxes”.
In a post on X, she said: “I refused to sign this deal because: Tax refunds for Indians not available to us. Visa requests too high. Ceramics and aluminium industries would be screwed. When Labour negotiates Britain loses.”
But Labour insisted similar tax arrangements are in place with more than 50 other countries, who offer the same deal for British workers abroad.
A spokesperson said: “This deal will provide an annual £4.8 billion boost for British businesses, create more jobs, raise wages by more than £2 billion a year and bring down prices for hard-pressed consumers.
“Kemi Badenoch is desperately seeking to distract from her failure with a made-up row about a standard tax agreement that will benefit British workers abroad.
“Where the Conservatives failed to seal the deal, Labour is putting more money in working people’s pockets through our plan for change.”
Keir Starmer said the government had agreed “a landmark deal with India – one of the fastest growing economies in the world, which will grow the economy and deliver for British people and business”.
Indian Prime Minister Narendra Modi described it as an “ambitious and mutually beneficial” trade agreement that will “catalyse trade, investment, growth, job creation, and innovation in both our economies”.
