Business Secretary Jonathan Reynolds has strongly criticised Reform UK leader Nigel Farage after claims that the new UK-India free trade agreement would “sell out” British workers. The row stems from a clause in the deal allowing Indian professionals seconded to the UK to avoid paying National Insurance contributions for up to three years — a system already in place with numerous other countries, including the US, Japan, and EU members.
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Mr Farage, fresh from recent election gains, claimed the government was favouring Indian workers while British employees were burdened with rising taxes. He accused Sir Keir Starmer of betraying the British workforce, arguing that the arrangement gives Indian workers “a free pass” while UK employers face higher National Insurance costs. He described the agreement as undermining domestic labour and promoting unfair competition.
Mr Reynolds responded firmly, dismissing Farage’s comments as “absolute nonsense”. He defended the deal, stating that it was a balanced agreement necessary to secure wider economic benefits, such as reduced tariffs and new opportunities for UK exporters. He further argued that critics like Farage, who championed Brexit, should support international trade with major economies like India rather than rejecting key post-Brexit opportunities.
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Despite concerns from Conservative leader Kemi Badenoch — who previously rejected a similar deal over what she called “two-tier taxes” — the government insisted the agreement would benefit the UK by £900 million a year and help boost bilateral trade by £25 billion by 2040. Major tariff reductions will impact key industries, including automotive, spirits, and food exports, while the Department for Business and Trade says the deal will secure lasting economic advantages for British businesses and workers alike.
