Tag Archives: india trade deal

The recently finalised UK-India Free Trade Agreement is being sold as a triumph —promising billions in new trade and a “win-win” for both economies. But beneath the headlines lies a provision that risks inflaming division, undermining fairness, and feeding the very populism we as Liberal Democrats stand against.

Under this agreement, Indian workers on temporary assignment in the UK will be exempt from paying National Insurance contributions for up to three years. Crucially, their employers will also be exempt. In practical terms, this means a British worker earning £15 an hour, and their employer, will both be paying into our social safety net—the NHS, pensions, sick pay—while an Indian worker earning the same wage and their employer will not. That is not just a loophole; it’s a loaded gun in the hands of populists.

Unfairness that will not go unnoticed

Let’s be frank: this arrangement is grossly unfair. It creates a two-tier workforce, and British workers will feel it acutely. We already ask our citizens to contribute through National Insurance so we can collectively fund services like the NHS and social care. If they see others working here, earning the same wage, using the same roads, hospitals, and infrastructure—yet contributing nothing to the pot—they will rightly question why.

And it won’t take long for populist voices to weaponise this. “Foreign workers don’t pay into the system.” “British jobs undercut.” This isn’t dog-whistle politics—it’s a klaxon, and the government is ringing it. The Liberal Democrats have long championed internationalism, but we cannot let that blind us to how policies land on the ground in working-class communities.

This isn’t about being anti-India. It’s about ensuring that when you live and work her, whether for three months or three year, you contribute like everyone else. Anything less breaks the basic contract of fairness that holds our society together.

A direct undercut to British workers