Rupert Lowe MP has demanded urgent clarification from Labour Chancellor Rachel Reeves over what he has called a “bizarre and insulting” clause in the UK’s new trade deal with India, which would exempt Indian workers from paying National Insurance contributions for up to three years.
In a strongly-worded letter sent to the Chancellor this week, the MP raised serious concerns about the impact the exemption could have on British taxpayers, calling the policy a threat to “fairness, transparency, and fiscal responsibility.”
The clause, reported to be part of the bilateral agreement with India, would allow Indian nationals temporarily living and working in the UK to avoid paying National Insurance contributions, taxes which fund essential services including the NHS, state pensions and welfare, for a period of up to three years.
Mr Lowe questioned why British workers were facing rising contributions while foreign nationals were allegedly being granted special treatment.
In the letter, Mr Lowe wrote:
The Government has yet to respond publicly to the letter or confirm the full details of the agreement. However, reports suggest the exemption may have been a key demand from Indian negotiators during the long-running trade talks.
Critics warn that such a clause could amount to a taxpayer subsidy for overseas workers, while offering little tangible benefit to the British public.
The Treasury has not issued a formal comment but sources say the Government will provide a detailed explanation once the full terms of the trade agreement are officially published.
A spokesman for Rupert Lowe’s office said: “This is about basic fairness. British workers should not be punished while others are handed exemptions with no democratic oversight.”
The Post will continue to follow developments closely as pressure mounts on the Chancellor to justify the decision.
Exciting news. Today there is a big news conference regarding a trade deal with America