UK-India Free Trade Agreement 2025-05-20
2025-05-20
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Response quality
Questions & Answers
Q1
Partial Answer
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Context
The MP is concerned about the potential fiscal impact of tax revenue and employment displacement due to a clause in the UK-India free trade agreement. The double contributions convention allows workers posted between India and the UK to avoid paying social security contributions twice.
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? Indian workers sent here by their employers will cost less in taxes than British rivals for doing the same jobs, which could displace British workers and suppress wages. Will the Chancellor commit now to monitoring the effects of the agreement?
This deal is worth £5 billion to the UK economy, reducing tariffs on Scotch whisky by more than half. The double contributions convention ensures that workers posted between India and the UK do not pay social security contributions twice. British workers benefit from this agreement as well.
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Assessment & feedback
The Chancellor did not address the fiscal impact or commit to monitoring the effects on employment displacement and tax revenue.
Redirecting Attention To Economic Benefits
Omitting Specific Commitments
Response accuracy