Indian officials have accused Kemi Badenoch of talking “rubbish” after the Tory leader claimed she had refused to sign the same trade deal struck by Sir Keir Starmer this week.
Hailed as a “landmark” agreement by the prime minister, the government announced on Tuesday that it had reached a deal to boost bilateral trade with India by £25bn – in what marks Britain’s biggest post-Brexit trade agreement.
However, Ms Badenoch criticised a condition of the agreement, similar to those in other British trade deals, stating that Indian and British workers will not pay national insurance for their first three years in their destination country – which she claimed she had previously objected to while trade secretary.
But the Financial Times has now cited New Delhi officials as insisting that Ms Badenoch had offered to give Indian employees two years of national insurance relief, while refusing a four-year exemption sought by India. Sir Keir Starmer has now agreed a three-year compromise.
“It’s amazing,” one senior Indian official was quoted as saying. “It was on the table when she was trade secretary.”
Ms Badenoch claimed the story was “fake news”, saying: “This is total and utter rubbish. I never agreed to any such tax deal. The evidence couldn’t be clearer — I refused to sign the deal.”
Starmer secures Britain’s biggest post-Brexit trade deal with India in ‘landmark’ agreement
Tariff cuts and tax exemptions for some workers agreed in UK-India trade deal
What UK-India trade deals means for whisky and car industry
US-UK trade deal with lower tariffs on cars and steel ‘could be signed this week’
Red Wall MPs demand Starmer ‘acts now’ to reverse winter fuel cuts as backlash grows
Key Points
- Indian officials accuse Kemi Badenoch of talking ‘rubbish’ over trade deal
- Hunt admits Tories ‘can’t rule out’ party extinction after disastrous local elections
- PMQS ANALYSIS: PM hits back at 'incoherent nonsense' in row over UK-India trade deal
- Badenoch piles pressure on Starmer to row back on winter fuel cuts
- UK could sell weapons to India as war with Pakistan looms, business secretary admits
Badenoch accuses Indian officials of ‘fake news’ in trade deal row
17:03 , Andy GregoryKemi Badenoch has sought to brand accusations from Indian officials that she is talking “rubbish” in her trade deal claims as “fake news”.
The Tory leader has criticised an element of the deal which exempts Indian and British workers from paying national insurance for three years in their destination country, claiming to have refused to sign a similar version of the deal while trade secretary because of this demand.
But the Financial Times has now cited Indian officials as insisting that Ms Badenoch had previously offered two years of national insurance relief, while refusing a four-year exemption sought by India.
“It’s amazing,” one senior Indian official was quoted as saying. “It was on the table when she was trade secretary.”
Responding to the article, Ms Badenoch wrote on social media: “Fake News Alert. This is total and utter rubbish. I never agreed to any such tax deal. The evidence couldn’t be clearer — I refused to sign the deal.
“As I have always said - No Deal is Better Than a Bad Deal.”
Reform UK to be Scotland’s second largest party at Holyrood, poll suggests
17:00 , Tara CobhamReform UK would become the main opposition in Scotland if an election were held tomorrow, a survey has suggested.
The poll from Survation, commissioned by True North Advisors, puts Nigel Farage’s party slightly ahead of Labour as the second-largest political party at Holyrood.
According to the poll, the SNP would remain, by far, the biggest group in the Parliament, with 33 per cent on the constituency vote and 29 per cent on the regional vote.
Reform UK came second with 19 per cent on the constituency vote and 20 per cent on the list vote.
Labour was close behind with 19 per cent on the first-past-the-post vote but fell slightly with 18 per cent on the regional ballot.
The Tories were on 11 per cent and 12 per cent respectively while the Liberal Democrats were on 11 per cent and 10 per cent.
The Greens came in behind at 5 per cent and 9 per cent while Alba was last with 1 per cent and 3 per cent respectively.
According to polling expert Professor Sir John Curtice, the survey would see the SNP fall to 58 seats while Reform would be in second place with 21 seats.
That would make the party the Scottish Parliament’s main opposition in the event the SNP formed the next government.
Indian officials accuse Kemi Badenoch of talking 'rubbish' with trade deal claims
16:38 , Andy GregoryIndian officials have accused Kemi Badenoch of talking “rubbish” after the Tory leader claimed she had “refused to sign” the same trade deal struck by Labour this week.
Ms Badenoch has claimed an agreement that Indian and British workers will not pay national insurance contributions for their first three years in their destination country amounts to a “two-tier” tax arrangement, which had led to her refusal to sign a similar deal while trade secretary.
But the Financial Times has cited New Delhi officials as insisting that Ms Badenoch had offered to give Indian employees two years of national insurance relief, while refusing the four-year exemption sought by India. Sir Keir Starmer has now agreed a three-year compromise.
“It’s amazing,” one senior Indian official was quoted as saying. “It was on the table when she was trade secretary.”
They added: “The Tories offered us two years but we said it wasn’t enough. They put it on the table.
“We wanted more than three, but the principle had already been conceded in return for some gives on our sides on services.”
Northern female MPs targeted by hostile media briefings from No. 10, says former Labour minister
16:30 , Tara Cobham
Northern female MPs targeted by hostile No.10 briefings, says ex minister
Downing St unable to answer questions on immigration or tax-take impact of UK-India trade deal
16:00 , Tara CobhamDowning Street was unable to provide estimates of how the UK-India trade deal may impact immigration or tax-take in Britain.
Asked whether there was an assessment on the impact on migration numbers of the agreement, the prime minister’s official spokesman said: “We don’t do individual line-by-line assessments on free trade deals.
“We do an overall impact assessment on the impact of a trade deal on the economy obviously, and the ONS and others, the OBR… will continue to do their analysis as well and provide the usual updates on immigration figures.”
He said the national insurance exemption for some Indian workers applied to a “specific, business mobility, intra-company transfer schemes” and not wider migration.
Asked whether the Government had an estimate of the potential impact on tax-take of the arrangement, the spokesman repeated that “we don’t do line-by-line modelling on every element of a trade deal”.
He said the overall impact of the deal would be “significantly positive” and that “once the final details of the social security agreement, the trade deal have been agreed and ratified,” then the Office for Budget Responsibility (OBR) would provide a fiscal assessment.
Downing St admits 'final details' of social security deal yet to be agreed between UK and India
15:40 , Tara CobhamDowning Street said the UK and India have not agreed the “final details” of their social security deal following opposition criticism of a temporary national insurance exemption for some Indian workers transferred to Britain.
Asked about the arrangement, the Prime Minister’s official spokesman said: “It’s a separate agreement as part of a trade deal. It’s called a social security agreement, so what the UK and India have agreed to is negotiate a deal.
“We have not agreed the final details with this.”
He added that there were similar reciprocal agreements with more than 50 other countries.
Sir Keir Starmer’s press secretary said opposition parties criticising the arrangement “have made their true colours known,” suggesting they would have “torn up” the agreements with 50 countries.
Badenoch warns of 'big questions' raised for British companies over UK-India trade deal
15:20 , Tara CobhamKemi Badenoch’s spokesman has said that the trade deal with India leaves “big questions to answer about how this impacts British companies”.
He called on the Government to do modelling on how much the social security exemption would cost and how many people it would impact.
Addressing the fact that the programme would be intra-company, the spokesman said: “You can still bring unlimited workers on lower national insurance. And this comes just after one of their first acts was to up national insurance for British workers.”
On similar deals in place with other countries, he said: The comparative examples of where we have this (…) are with countries with relatively similar economic status. So, you know, there is clear discrepancy here.”
Hunt admits Tories ‘can’t rule out’ party extinction after disastrous local elections
15:00 , Tara CobhamFormer Tory chancellor Jeremy Hunt has admitted that the Conservatives “can’t rule out” the prospect of extinction.
Mr Hunt’s admission comes after the Tories were hit by heavy losses in the local elections last week, while Labour also suffered defeats.
Asked by Times Radio’s Andrew Neil if extinction is a possibility, he said: “We can't rule it out. Look at the massive earthquake in Western democratic politics in other countries and we are seeing wild swings.
“I don't think the Conservative Party will ever be extinct, but what may be extinct is the old two-party system that's seen parties swing between one party and the other. Certainly at the moment, voters seem to be split between five parties and that's a very, very big change.”
However, he insisted that he believes there is a way back for the Tories.
He added: “It's also important not to exaggerate the woes of the Conservative Party. We're less than a year after the heaviest defeat in our history. It's very unlikely having kicked us out, voters are going to come running back to the Conservatives within just a matter of months and we do need to have a period of reflection and it is going to take a few years before people will give us another look.
“But I think over time they will because no one speaks to the conservative values that I think most people recognise are very important for the country, a party that's pro-business, understands wealth creation, understands aspiration and will run the economy well and I think by the time it comes to the next general election people are really going to want a party that stands for that.”
UK poised to agree post-Brexit youth visa scheme with EU after government U-turn
14:40 , Tara CobhamThe UK looks set to agree a post-Brexit youth mobility scheme with the European Union, despite previously ruling out such a deal.
Such a scheme – which has long been pushed by the European Union but opposed by the British government - would allow under 30s to move and work freely between countries for a limited time period.
Britain already has similar agreements with Australia and 12 other countries, including New Zealand, South Korea, Iceland, Uruguay, Hong Kong and Taiwan.
The Independent’s political correspondent Millie Cooke reports:
UK poised to agree post-Brexit youth visa scheme with EU after government U-turn
'Will you change course?' Badenoch demands of PM over winter fuel payment cuts
14:15 , Tara CobhamTory leader Kemi Badenoch asked the prime minister if he would “change course” on cuts to winter fuel payments.
Mrs Badenoch said: “The only black hole is the one the Prime Minister is digging.
“This issue affects some of the poorest and most vulnerable pensioners. His mayor in Doncaster says it’s wrong. His First Minister in Wales says it’s wrong. Even his own MPs are saying it’s wrong. He’s refused to listen to me on this, will he at least listen to his own party and change course?”
Sir Keir Starmer replied: “Let’s spell this out. All the parties opposite would take this country back to where it was a few years ago. Broken public finances, interest rates through the roof, NHS waiting lists at all time high, because no other party in this House is prepared to say how they would put the finances straight.
“No other party is saying how they would invest in our NHS and public services. No other party is focused on the long-term prosperity of Britain. No-one on this side is denying how big the challenge is that we face, but no-one on that side of the House is even prepared to take those challenges on.”
Watch: Starmer calls UK-India trade deal attacks 'incoherent nonsense' after clash with Badenoch
14:00 , Tara Cobham'Pensioners are poorer and colder because of Starmer's decisions,' Badenoch tells Commons
13:45 , Tara CobhamKemi Badenoch said the Conservatives “wouldn’t balance it on the back of pensioners” when addressing economic challenges, telling Sir Keir Starmer in the Commons: “Pensioners are poorer and colder because of his decisions.
“All the while energy has got more expensive for everyone. Why has the Prime Minister broken his promise to cut energy bills by £300?”
Sir Keir replied: “The way to bring energy bills down for good is to deliver cheap, clean, homegrown energy. And in the meantime we’ve extended the warm homes discount to six million households – one in five families, that’s £150 off the bills next winter.
“But what won’t bring energy bills down is the leader of the Opposition’s policy leaving us hooked on fossil fuels, at the mercy of dictators like Putin.”
Sir Keir accused the Conservatives of “blocking every infrastructure that’s needed in their own backyard” and said this would also not bring bills down.
Badenoch accuses Starmer of breaking promises over pledges to cut energy bills
13:30 , Tara CobhamKemi Badenoch also accused Keir Starmer of breaking promises over pledges to cut energy bills.
The Conservative leader told the Commons today: “The prime minister talks about clean energy, we have the second highest amount of renewables on the grid in Europe and yet we still have the highest energy bills. This is not about clean energy.
“The prime minister has broken another promise, he won’t admit it, but isn’t the truth that he can’t cut energy bills because of his net zero policy?”
Sir Keir Starmer replied: “Energy bills on fossil fuel have fluctuated massively in the last three years because we’re exposed to the international market.
“The only way to get bills down is to go to renewable energy, it’s something she used to believe in.”
Tory MP accuses Starmer of 'hating Britain's pubs' and 'taxing them into extinction'
13:15Conservative MP Matt Vickers (Stockton West) said Sir Keir Starmer “hates Britain’s pubs” and is “taxing them into extinction”.
He said: “Last week I was talking to Jason, a pub landlord, and he told me he has heard a rumour about the Prime Minister – not that one, not that one.
“He has heard that there is a reason why the Prime Minister hates Britain’s pubs. Landlords like Jason are being battered by Labour’s jobs tax and the slashing of small business rates relief, meaning that as many as half of Britain’s pubs could be closed by 2030.
“Why does he hate Britain’s pubs? And if he doesn’t, why is he taxing them into extinction?”
The prime minister replied: “Nobody likes pubs better than me, and we support them, but it’s the same old nonsense. They say they don’t want the national insurance rise, but they don’t have the courage to say if they’d reverse it because they know if they said that they wouldn’t be able to say where the money is coming from. That’s how we got into the problem in the first place.”
Watch: Pensioners are colder because of Labour says Badenoch in clash with Starmer over winter fuel allowance
13:00 , Tara CobhamDavey urges PM to 'bring back winter fuel payment for millions of struggling pensioners'
12:41 , Tara CobhamSir Ed Davey has urged the Prime Minister to “bring back the winter fuel payment for millions of struggling pensioners”.
At Prime Minister’s Questions, the Liberal Democrats leader said: “Among the messages voters sent ministers last week, one stood out: bring back the winter fuel payment for millions of struggling pensioners.
“So people will be disappointed the prime minister failed to do that today. He says he wants to go further and faster to clean up the mess left by the Conservatives, but on social care, so crucial for our NHS, he is going slower and slower.”
Sir Ed urged the prime minister to “rip up” its current timetable for Baroness Casey’s independent commission into adult social care, which he said is not expected to be implemented until 2036.
Sir Keir Starmer replied: “As he knows, we’re taking this in two stages. We are already taking measures to increase the support for social care, quite right, too, and doing the long work to reform and make sure we put a system in place.
“But can I just say to him once again, he comes here every week saying we should spend more money, and he comes here at the same time saying he doesn’t want to pay for any of the measures to raise that money. That is nonsense.”
Situation in Gaza and West Bank ‘increasingly intolerable’, PM says
12:37 , Tara CobhamThe Independent’s political correspondent Millie Cooke reports:
The situation in Gaza and the West Bank is “increasingly intolerable”, Sir Keir Starmer has said, expressing concern about the lack of humanitarian aid that is getting in.
The prime minister said the government’s focus is on “delivering peace for Palestinians and Israelis, returning to the ceasefire, getting the hostages out and humanitarian aid in that is desperately needed in greater number and more quickly.”
He told the Commons: “The situation in Gaza and the West Bank.. is increasingly intolerable and I am deeply concerned particularly with the lack of aid that is getting in and the impact it is having on hundreds of thousands of individuals.
“That concern is something I recently reaffirmed of the prime minister of the Palestinian authority, where I asserted again that a two state solution is the only viable approach for peace.”
What UK-India trade deals means for whisky and car industry
12:35 , Tara CobhamSir Keir Starmer has hailed as a ‘landmark’ an agreement to strike Britain’s biggest post-Brexit trade deal with India.
Ministers say the move which will see tariffs reduced on UK whisky, gin, cars and cosmetics, will boost trade by £25.5bn and add £4.8bn a year to the UK economy, as well as boosting wages by £2.2bn annually.
It comes as the prime minister hopes to secure a trade deal with the US, in a bid to offset some of Donald Trump’s tariffs, which have triggered global economic chaos.
Read more here:
'UK now a country that countries like India want to do deals with,' Starmer says
12:33 , Tara CobhamSir Keir Starmer has said the government’s actions have made the UK “a country that countries like India want to do deals with”.
Conservative leader Kemi Badenoch asked at Prime Minister’s Questions: “Does the Prime Minister now admit that he was wrong to remove the winter fuel payment from millions of pensioners?”
The prime minister replied: “The number one job of this Government was to put our finances back in order after the last government lost control. That is to deal with the £22 billion black hole that they left. Because of our action, we’ve stabilised the economy.”
He added: “We’re committed to the triple lock, which improved pensions by £470 last year.
“Because of the work that we have done, we are a country that countries like India want to do deals with, because of the messages and the work that we have done.”
PM says he is encouraging 'de-escalation' after exchange of fire over Kashmir
12:29 , Tara CobhamThe prime minster said he is encouraging “dialogue, de-escalation and the protection of civilians”, following an exchange of fire over Kashmir.
Speaking at Prime Minister’s Questions, Sir Keir Starmer said: “Rising tensions between India and Pakistan will be of serious concern for many across Britain. We are engaging urgently with both countries, as well as other international partners, encouraging dialogue, de-escalation and the protection of civilians.”
PMQS ANALYSIS: Don’t pick a fight with James Bond, Bridget Jones and Paddington Bear
12:22 , Tara CobhamThe Independent’s political editor David Maddox reports:
Lib Dem leader Sir Ed Davey hits out at the approach to dealing with Trump noting that “now he is coming after our world leading film industry!”
Sir Ed asks if Sir Keir Starmer agrees that if you “pick a fight with James Bond, Bridget Jones and Paddington Bear you will lose?”
But the prime minister strangely does not seem to agree with the Lib Dem leader.
He repeated that it is a “false choice” to try to choose between the US and EU and argued that “the sectors the right honourable gentlemen are trying to champion want us to negotiate that trade deal” with the US.
The Lib Dem leader though is hitting a chord with people over the growing anxiety over Trump’s tariffs and foreign policy.
PMQS ANALYSIS: PM hits back at 'incoherent nonsense' in row over UK-India trade deal
12:21 , Tara CobhamThe Independent’s Whitehall editor Kate Devlin reports:
Keir Starmer was visibly angry as he hit out at what he said was the Tories “incoherent nonsense” in the row over the UK-India trade deal.
He challenged Kemi Badenoch if she was planning to "tear up" deals with 50 other countries in the argument over ‘double taxation’.
A row erupted after opposition politicians, including Tories and those from Nigel Farage’s Reform, criticised part of the deal that exempts some temporary Indian workers from national insurance payments.
The move is under what is known as the “double contribution convention”, which is designed to stop workers and employers paying the tax twice, once in each country.
Badenoch brands Labour's winter fuel policy a 'disaster'
12:17 , Tara CobhamKemi Badenoch has branded Labour’s winter fuel policy a “disaster”.
She told the Commons that “everyone knows it, adding: “Why should we all suffer because he won’t admit he’s got this wrong?’
Starmer accuses Tories of '8 years fiddling around to get absolutely nothing' in UK-India trade deal
12:14 , Tara CobhamKeir Starmer has accused the Tories of taking “eight years fiddling around” and ending with “absolutely nothing” in attempts to get a UK-India trade deal.
The PM told the Commons Kemi Badenoch “should be welcoming” his government’s newly-struck agreement.
PMQS ANALYSIS: Kemi Badenoch needs a good performance today with questions about her future
12:11 , Tara CobhamThe Independent’s political editor David Maddox reports:
Kemi Badenoch needs to have a strong performance today with Tory MPs now discussing her future as leader amid concerns that the party could be all but destroyed if it does not turn things around in a year.
With Reform now replacing them in their heartlands, the Tories know that they need to step up.
There has been a lot of criticism of Ms Badenoch over her performances at PMQs.
Ms Badenoch went after a problematic area for the PM over winter fuel payments for pensioners being removed.
But her demeanour today was subdued and the cheers behind her from the Conservatives slightly forced.
Worse still the PM mocking her over her apparent U-turn in opposing a trade deal with India which she as business and trade secretary failed to deliver.
Today’s efforts will not have secured her position.
Badenoch piles pressure on Keir Starmer to row back on winter fuel cuts
12:10 , Tara CobhamThe Independent’s political correspondent Millie Cooke reports:
Kemi Badenoch has piled pressure on Sir Keir Starmer to restore winter fuel payments to all pensioners, asking if he will “listen to his own party and change course”.
Amid growing pressure from Labour MPs to row back on the cuts, the Tory leader asked if the PM will “now admit that he was wrong to remove the winter fuel payment from millions of pensioners”.
Responding, the prime minister said “the number one job of this government was to put our finances back in order after the last government lost control and to deal with the £22bn black hole that they left”.
Sir Keir added: “All the parties opposite, would take this country back to where it was a few years ago. Broken public finances, interest rates through the roof, NHS waiting lists at all time.”
PMQs: Starmer revels in India trade deal success
12:09 , Tara CobhamThe Independent’s political editor David Maddox reports:
Sir Keir Starmer starts PMQs boasting of his “huge win” for Britain in landing a trade deal with India.
The issue is already becoming a thorny one with the Tories and Reform complaining about Indians having tax breaks with it.
Ironically it is the Brexiteers who said leaving the EU would give the UK great trade deals who are now complaining.
But at a time of trade turbulence internationally and instability as well as a thumping in last week’s elections this announcement has given Starmer the boost he needs.
Starmer defends winter fuel payment cuts as he's accused of 'digging himself a black hole'
12:08 , Tara CobhamKeir Starmer has defended winter fuel payment cuts as he was accused of digging himself a “black hole”.
Kemi Badenoch asked the prime minister at PMQs: Does the prime minister now admit he was wrong to remove winter fuel payments from millions of pesnisoners?”
The PM responded that his government’s “number one priority was putting the country’s finances back in order”, repeating his party’s claim that it had to plug the “£22 billion black hole” in the UK’s finances left by previous Conservative governments.
Ms Badenoch responded: “The only black hole is the one the prime minister digging.”
Starmer hails UK-India trade deal as ‘biggest trade deal for UK since Brexit’
12:04 , Tara CobhamKeir Starmer has hailed the UK-India trade deal as the “biggest trade deal for the UK since leaving the EU”.
Speaking at PMQs today, the prime minister called the “landmark” agreement a “huge win for working people in the country”.
Starmer to face Badenoch at PMQs after Labour insists India trade deal does not undercut British workers
11:57 , Tara CobhamKeir Starmer is facing Kemi Badenoch at PMQs after Labour insisted the UK’s new trade deal with India does not undercut British workers.
It also marks the first session since both Labour and the Tories endured heavy losses in last week’s local elections.
Starmer seen leaving for PMQs when he's to be grilled over UK-India trade deal and local elections
11:35 , Tara Cobham
US-UK trade deal with lower tariffs on cars and steel ‘could be signed this week’
11:30 , Tara CobhamBritain is said to be days away from to securing a trade deal with the US which would lessen the impact of Donald Trump’s tariffs.
The UK has been in talks with the Trump administration as part of an attempt to agree a carve out from tariffs, which are wreaking havoc on the global economy.
Trade negotiators have returned to Washington this week and officials told the Financial Times that the trade deal could be agreed in the next few days.
Political correspondent Millie Cooke reports:
US-UK trade deal with lower tariffs on cars and steel ‘could be signed this week’
Reform also gains ground in Wales while support for Labour collapses, YouGov poll reveals
11:19 , Tara CobhamReform UK has also gained ground in Wales while support for Labour has collapsed, according to a new YouGov poll.
While Plaid Cymru leads the race for next year’s Senedd election, according to the YouGov/ITV Wales Welsh voting intention poll, Nigel Farage’s party is now in second place, with Labour far behind.
Plaid Cymru lead on 30 per cent of the vote for the May 2026 Senedd election, while Reform sits at 25 per cent, the figures revealed.
Meanwhile, Labour, who have won every previous devolved election, is in a distant third place on just 18 per cent, which is half the 36 per cent of the regional vote that they won back in 2021.
The Conservatives are even further back, sitting at only 13 per cent, which also marks half their vote share in the 2021 election.
Then the Lib Dems take 7 per cent, while the Greens sit at 5 per cent.
Watch: UK-India deal does not undercut British workers, says trade secretary
11:00 , Tara CobhamGovernment refuses to be drawn on reports UK closing in on US trade deal
10:45 , Tara CobhamThe government has refused to be drawn on reports the UK is closing in on a trade deal with the US.
The Financial Times reported an agreement could soon be reached that involves lower tariff quotas for cars and steel.
But a government spokesperson told The Independent: “The US is an indispensable ally and talks on an economic deal between the US and the UK are ongoing - but we are not going to provide a running commentary on the details of live discussions or set any timelines.
“We will continue to take a calm and steady approach to talks and aim to find a resolution to help ease the pressure on UK businesses and consumers.”
Government insists deal will involve 'no impact' on immigration system or numbers
10:40 , Tara CobhamThe government has insisted the new UK-India trade deal will involve “no impact” on the immigration system or immigration numbers.
The agreement includes some easing of rules on “business mobility” for temporary visitors and up to 1,800 chefs, yoga instructors and musicians providing contracted services.
Full story: Red Wall MPs demand Starmer ‘acts now’ to reverse winter fuel cuts as backlash grows
10:21Sir Keir Starmer has been urged by his own MPs to “act now” to reverse the cut to winter fuel payments as backlash over the move grows.
There has been growing public anger over the policy after Labour suffered a disastrous result at last week’s local elections, which saw Reform pick up 10 councils and more than 600 seats.
The Red Wall group of Labour MPs, made up of around 45 MPs from Red Wall constituencies, warned that Sir Keir’s response that he would "go further and faster" in delivering his plans had "fallen on deaf ears".
Political correspondent Millie Cooke has the full story:
Red Wall MPs demand Starmer ‘acts now’ to reverse winter fuel cuts as backlash grows
Watch: Northern female MPs target of hostile media briefings from people working in No. 10', says former Labour minister
10:00 , Tara CobhamWhat is national insurance aspect of UK-India trade deal – and row that's broken out over it
09:45 , Tara CobhamUnder the terms of the UK-India trade agreement, staff working for an Indian company who transferred to the UK for less than three years would pay into the Indian social security system rather than paying into both British and Indian systems as they do now.
UK workers temporarily in India would remain subject to national insurance, but be exempt from Indian social security levies.
Trade secretary Jonathan Reynolds pointed to similar deals with 50 other countries, including the EU, the US, Canada and Japan, saying that the previous Conservative government signed a similar deal exempting Chilean workers from national insurance for five years.
Seconding Indian staff to the UK will also involve additional costs such as the immigration health surcharge and relocation costs, Mr Reynolds said.
He added that the overall impact of the deal would mean more tax revenue for the treasury, and said he expected more UK workers to be seconded to India as a result of British companies gaining access to Indian government procurement contracts.
However, Kemi Badenoch claimed she had “refused to sign this deal” while trade secretary, in part due to the condition that some Indian and British workers will avoid paying national insurance for the first three years in their destination country.
Red Wall MPs demand Starmer 'acts now' to reverse winter fuel cuts as backlash grows
09:26 , Tara CobhamLabour’s group of Red Wall MPs have demanded Keir Starmer “acts now” to reverse winter fuel cuts as backlash against the prime minister grows in the wake of the party’s local election losses.
In an open letter, they also said Sir Keir’s “further and faster” pledge on his Plan for Change has “fallen on deaf ears”.
Statement from the Red Wall Group of Labour MPs following the local elections pic.twitter.com/RKgJbhmU6z
— LabourRedWallGroup (@RedWallGroup) May 6, 2025
Minister call claims home office not informed on aspects of India trade deal 'nonsense'
09:15 , Tara CobhamClaims the home office was not informed about aspects of the Indian trade deal are “nonsense”, the trade secretary has said.
Asked about reports the home office was not informed about parts of the deal that could increase the number of Indian workers in the UK, Jonathan Reynolds told ITV’s Good Morning Britain: “That’s absolute nonsense reporting.
“Of course, all colleagues are involved in this, but because there is no impact on the immigration system, on immigration numbers from this trade deal, it’s not an immigration issue.
“It’s about us selling more to India, services, goods, a whole range of things that benefit every part of the UK, and some cheaper goods for UK consumers in terms of footwear and clothing because of the tariffs we have reduced on Indian goods coming here.”
Reform UK hit record high in polls, according to YouGov figures
08:57 , Tara CobhamReform UK have hit a record high in the polls, according to YouGov figures on voting intention.
Nigel Farage’s party is up three points to 29 per cent, extending their lead over Labour, which is down one point to 22 per cent, according to the poll conducted for Sky News and The Times.
The Tories are down by even more – three points to sit at 17 per cent – marking the party’s lowest score since the Brexit years.
Meanwhile, both the Lib Dems and the Greens are up one point, with the former now at 16 per cent, and the latter at 10 per cent.
YouGov / Sky News / Times voting intention
— Sam Coates Sky (@SamCoatesSky) May 7, 2025
Reform 29 (+3),
Lab 22 (-1),
Con 17 (-3),
Lib Dem 16 (+1),
Green 10 (+1)
** Tories last polled 17% in June 2019 just before Theresa May successor chosen
** This is Reform UK's highest vote share
** Brexit Party highest share June…
Farage accuses Starmer of ‘betraying’ British workers with India trade deal
08:34 , Tara CobhamNigel Farage has accused Keir Starmer of having “betrayed” British workers with his “truly appalling” UK-India trade deal.
In a video posted to social media, the Reform UK leader said: “This government doesn’t give a damn about working people. The labour party have this time in a big, big way betrayed working britain.
“And that’s why many people voted for us last Thursday. But for some reaosn the government just doesn’t seem to understand.”
He went on to describe the agreement reached as “truly appalling”.
Two-tier Keir betrays British workers. pic.twitter.com/4Aiw7W8lBf
— Nigel Farage MP (@Nigel_Farage) May 6, 2025
India trade deal shows UK are ‘grown-ups in room’ as Trump tariffs 'sow global confusion', says IPPR
08:21The India trade deal shows that the UK are “the grown-ups in the room” as Donald Trump’s tariffs “sow global confusion”, a think tank has said.
Reacting to the agreement struck between the UK and India, Marley Morris, associate director for trade at The Institute For Public Policy Research, said: “After three prime ministers failed to get a trade deal with India over the line, this is a major win for Starmer – especially at a time when Trump’s tariffs are making international trade even more fraught.
"This deal will cut tariffs, boost growth, and create jobs. It shows that even in a tough global economic climate, the UK can be the grown-ups in the room – and turn uncertainty into opportunity, in stark contrast to Trump’s approach.
“Crucially, the deal was possible by negotiating a social security pact for Indian workers alongside the free trade agreement. This demonstrates the value of international diplomacy and compromise for unlocking economic growth."
Starmer to face PMQs for first time since local elections
08:14 , Tara CobhamKeir Starmer will face Prime Minister’s Questions today, for the first time since Labour and the Tories suffered heavy losses in the local elections last week.
The prime minister will also be questioned over the new India trade deal in the Commons at midday.
UK could sell weapons to India as war with Pakistan looms, business secretary admits
07:54Political correspondent Millie Cooke reports:
The business secretary has failed to rule out supplying India with weapons, amid escalating tensions with Pakistan.
While Jonathan Reynolds said military equipment is "not a specific part of the trade deal" - noting that France is a more significant supplier of weapons to India - he said the UK would "always be willing to talk to a fellow democracy if that was something they were interested in".
He told Sky News that Britain should "not be squeamish" about exporting our defence sector to other markets around the world, adding that the UK "should be proud that we've got the capacity to defend ourselves".
It came just minutes after he told the BBC's Today programme that the situation in Kashmir was "hugely worrying", adding that Britain is ready to support both India and Pakistan to de-escalate tensions following an exchange of fire between the two nations.
Watch: UK and India trade deal will 'grow the economy', promises Starmer
07:47 , Tara CobhamFull story: Starmer secures Britain’s biggest post-Brexit trade deal with India in ‘landmark’ agreement
07:46 , Tara CobhamSir Keir Starmer has struck Britain’s biggest post-Brexit trade deal, hailing a “landmark” agreement with India that will boost trade with the country by £25.5bn.
In what the prime minister is billing as a major coup, he said the agreement, which focuses on whisky, gin, cars and cosmetics, will boost the economy and cut prices for consumers.
The opening up of international trade with one of the world’s biggest and fastest-growing economies comes as the prime minister attempts to deal with Donald Trump’s latest moves in the battle over tariffs on imports to the US.
Read the full story from The Independent’s politics team here:
Starmer secures Britain’s biggest post-Brexit trade deal with India
UK ready to 'support' India and Pakistan to de-escalate tensions, minister says
07:45 , Tara CobhamThe UK is ready to “support” both India and Pakistan to de-escalate tensions following an exchange of fire between the two nations, a minister has said.
Trade Secretary Jonathan Reynolds said the situation in Kashmir was “hugely worrying”.
He told the BBC’s Today programme: “Our message would be that we are a friend, a partner to both countries. We stand ready to support both countries.
“Both have a huge interest in regional stability, in dialogue, in de-escalation and anything we can do to support that, we are here and willing to do.”
UK-India trade deal criticism is Tories 'unable to accept' government has 'done what they couldn't do'
07:43 , Tara CobhamCriticism of national insurance provisions in the UK-India trade deal is a result of the Conservatives being “unable to accept” that the government has “done what they couldn’t do”, the trade secretary has said.
Jonathan Reynolds told Sky News: “This is not a tangible issue. This is the Conservatives – and Reform – unable to accept that this Labour Government has done what they couldn’t do and get this deal across the line.
“This is presenting a false reason why they couldn’t (do it).”
'Absolutely false' to say India trade deal undercuts British workers, insists business secretary
07:40 , Tara CobhamPolitical correspondent Millie Cooke reports:
It is "absolutely false" to say the trade deal with India is undercutting British workers, the business secretary has insisted, arguing that the criticism is a result of the Conservatives being “unable to accept” that the government has “done what they couldn’t do”.
"To present this as something undercutting British workers or unique to India is absolutely false", Jonathan Reynolds told Sky News said. "This is just what we have in place with a whole range of key trading partners."
He argued the system is fair, because it avoids foreign workers from being "taxed twice" - by the UK and their home nation.
"I don't accept anyone is being undercut by this. I don't accept what we have with all these 50 other countries undercuts British workers. It means the foreign workers pay into their system, and UK workers abroad pay into our system. They're not taxed twice. I think that's fair, but it doesn't mean that anyone is being undercut", he said.
Dismissing the criticism, Mr Reynolds added: “This is not a tangible issue. This is the Conservatives – and Reform – unable to accept that this Labour government has done what they couldn’t do and get this deal across the line. This is presenting a false reason why they couldn’t (do it)."
Labour accuse Tories of ‘made-up tax row’ after striking £25bn India trade deal
07:32 , Tara CobhamLabour has accused Tory leader Kemi Badenoch of confecting a “made-up row” over the newly-struck India trade deal to “distract from her failure” to secure a similar agreement.
Hailed as a “landmark” agreement by Sir Keir Starmer, the government announced on Monday that it had reached a deal to boost bilateral trade with India by £25bn – in what marks Britain’s biggest post-Brexit trade agreement.
While Boris Johnson famously promised to make such an agreement by Diwali in October 2022, an India trade deal has remained elusive for UK successive prime ministers. The new deal will immediately cut tariffs on whisky, gin, cars and cosmetics, while reducing barriers to imports of Indian textiles, food and jewellery.
However, Ms Badenoch claimed she had “refused to sign this deal” while trade secretary, in part due to a condition – similar to those already in place with more than a dozen other countries – that some Indian and British workers will avoid paying national insurance for the first three years in their destination country.
A Labour spokesperson accused Ms Badenoch of “desperately seeking to distract from her failure with a made-up row about a standard tax agreement that will benefit British workers abroad”.
