AN INDIAN trade deal signed today will boost Britain’s economy by £4.8billion a year – but will come too late to bail out Rachel Reeves before the Budget.
Sir Keir Starmer will host his counterpart Narendra Modi to ink the long-awaited agreement that tears down tariff barriers.
AFPSir Keir Starmer will host his counterpart Narendra Modi to ink their long-awaited trade agreement[/caption]
The post-Brexit pact will also exempt Indian temporary workers in the UK from paying National Insurance, and vice-versa with our citizens employed on the subcontinent.
But ministers insist it will not increase net migration, which was one of the main fears when subsequent Tory PMs tried to get a deal done.
Indian average tariffs on UK exports will be slashed from 15 to 3 per cent, while whisky producers will toast an immediate duty cut from 150 to 75 per cent.
Trade Department analysis reckons the deal will add £4.5billion to UK GDP every year, boost wages by £2.2billion and rake in £1.8billion in tax receipts.
However it is understood that the benefits of the deal – which needs to be ratified by both countries’ Parliaments – will not be taken into account by the OBR in time for the Budget.
Ms Reeves is facing a multi-billion black hole after the winter fuel u-turn, welfare climbdown and stubborn inflation and is desperate to kickstart growth to avoid more tax rises.
Sir Keir said last night: “Our landmark trade deal with India is a major win for Britian.
“It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change.”
In April 2022 then PM Boris Johnson pledged an Indian trade deal “by Diwali” but negotiations were held up by demands for more visas for Indian migrants.
Current Shadow Business Secretary Andrew Griffith last night hailed Brexit allowing Britain to strike out alone and make trade agreements.
He said: “This deal is only possible because of Brexit delivered by the Conservatives.
“Our slow learner of a Prime Minister must take note and stop capitulating to Brussels via his lopsided EU reset deal.
“Any trade deal that can successfully cut regulation which stops Britain’s makers from creating new jobs and wealth will be a step in the right direction.”
ReutersChancellor Rachel Reeves is desperate to kickstart growth to avoid more tax rises[/caption] Published: [#item_custom_pubDate]
