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UK and India strike trade deal after three years of talks

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UK and India strike trade deal after three years of talks

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Britain and India on Tuesday announced a “landmark” trade deal that included concessions to New Delhi on access to UK employment markets in return for big cuts to Indian tariffs on exports of whisky and cars.

The deal will exempt the UK operations of Indian employers from paying national insurance on Indian staff relocating to the UK for up to three years, making it cheaper to move people to Britain than previously.

The UK’s Labour government hailed the deal as a “bright shining light” at a time when US President Donald Trump’s tariffs have roiled the world economy.

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But it faced domestic criticism over the national insurance move, just days after the anti-immigration Reform UK party swept local elections in England.

Reform leader Nigel Farage claimed that UK Prime Minister Sir Keir Starmer had “betrayed working Britain”.

India pushed hard during the three-year long negotiations for the “Double Contribution Convention”, which will give Indian employers in the UK relief from Britain’s 15 per cent national insurance levy paid by companies. The deal to avoid double taxation also covers national insurance contributions paid by employees.

New Delhi has agreed to cut whisky and gin tariffs, which will be halved from 150 per cent to 75 per cent before falling to 40 per cent by the tenth year of the deal. Car tariffs will fall from more than 100 per cent to 10 per cent, subject to a quota.

Talks on the deal accelerated in the wake of Trump’s imposition of global tariffs last month, with London and New Delhi keen to seal closer trade ties.

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Indian Prime Minister Narendra Modi posted on X that the deal was “ambitious and mutually beneficial”, adding that Starmer would visit India soon.

British ministers hope the India trade deal could be a prelude to the signing of an agreement with Trump in the coming days, ahead of a deal with the EU to start improving bilateral trade links at a summit on May 19.

The UK government estimates the India deal will boost Britain’s economy by 0.1 per cent by 2040. Officials insisted it would not involve changes to the British visa system or broader immigration strategy, at a time when Reform and the Conservatives are campaigning hard on the issue.

British officials said Indian employees relocating to the UK would still be subject to salary thresholds for visas and have to pay the NHS surcharge for immigrant workers, despite the national insurance exemption.

The agreement comes after UK chancellor Rachel Reeves controversially raised national insurance contributions for employers at her first Budget last October.

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Dame Harriett Baldwin, the Conservative party’s shadow minister for business and trade, said in parliament that the deal “looks like it’s subsidising Indian labour while undercutting British workers”.

The centrist Liberal Democrats also questioned the national insurance agreement, saying the move needed careful scrutiny by MPs.

Trade minister Douglas Alexander told MPs the national insurance part of the trade deal was “reciprocal” and would “benefit UK workers and their employers as the opportunity within India expands”.

The UK government said the national insurance agreement was similar to arrangements it had with countries such as Switzerland, Norway and Canada. Indian employers are among the biggest users of intra-company transfer visas into the UK.

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The UK government said cuts in tariffs on Indian products would help provide British shoppers with “cheaper prices and more choice” in areas including clothes, footwear and food products such as prawns.

India will keep tariffs in place for dairy products, while the UK is keeping restrictions in place on some agriculture products such as milled rice.

Although full details are not yet available, the trade pact is expected to be one of the most significant new agreements signed by Britain since it left the EU, following accords with Australia and Japan.

Based on 2022 trade, the deal would involve India cutting tariffs worth more than £400mn a year when the agreement came into force, rising to about £900mn after 10 years, said the UK government.

It added that it expected the deal to increase bilateral trade by £25.5bn and UK GDP by £4.8bn in the long run. Bilateral trade between the UK and India was £42.6bn in 2024 while UK GDP was £2,851bn.

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The announcement said the deal would bring “market certainty” to UK services exports currently worth £500bn a year. However, the Law Society of England and Wales said the deal had failed to include legal services and was a “missed opportunity”.

Sam Lowe, trade lead at consultancy Flint Global, said that being among the first countries to strike a trade deal with India was a win for the UK, but the ultimate benefits would only become clear over time. 

Additional reporting by Amy Borrett

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Here’s What the New Virginia House Map Looks Like

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Here’s What the New Virginia House Map Looks Like

Virginians approved a new congressional map on Tuesday that would aggressively gerrymander the state in the Democrats’ favor, giving the party as many as four more U.S. House seats.

The new map draws eight safely Democratic districts and two competitive districts that lean Democratic, according to a New York Times analysis of 2024 presidential results. It leaves just one safe Republican seat, compared with the five seats the G.O.P. holds on the current map.

The proposed map was drawn by Democratic state legislators and approved by Gov. Abigail Spanberger, a Democrat. It eliminates three Republican-held seats in part by slicing the densely populated suburbs in Arlington and Fairfax Counties and reallocating their overwhelmingly Democratic voters into five congressional districts, some stretching more than a hundred miles into Republican areas.

Perhaps the most extreme new district is the Seventh, which begins at the Potomac River and stretches to the west and south in a manner that resembles a pair of lobster claws. Several well-known Virginia Democrats have already announced their candidacies and begun campaigning in the district.

Reid J. Epstein contributed reporting.

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Southern Poverty Law Center indicted on federal fraud charges

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Southern Poverty Law Center indicted on federal fraud charges

Acting Attorney General Todd Blanche speaks as FBI Director Kash Patel listens during a news conference at the Justice Department on Tuesday in Washington.

Jacquelyn Martin/AP


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Jacquelyn Martin/AP

WASHINGTON — The Southern Poverty Law Center was indicted Tuesday on federal fraud charges alleging it improperly raised millions of dollars to pay informants to infiltrate the Ku Klux Klan and other extremist groups, acting Attorney General Todd Blanche said.

The Justice Department alleges the civil rights group defrauded donors by using their money to fund the very extremism it claimed to be fighting, with payments of at least $3 million between 2014 and 2023 to people affiliated with the Ku Klux Klan, the United Klans of America, the National Socialist Party of America and other extremist groups.

“The SPLC was not dismantling these groups. It was instead manufacturing the extremism it purports to oppose by paying sources to stoke racial hatred,” Blanche said.

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The civil rights group faces charges including wire fraud, bank fraud and conspiracy to commit money laundering in the case brought by the Justice Department in Alabama, where the organization is based.

The indictment came shortly after SPLC revealed the existence of a criminal investigation into its program to pay informants to infiltrate extremist groups and gather information on their activities. The group said the program was used to monitor threats of violence and the information was often shared with local and federal law enforcement.

SPLC CEO Bryan Fair said the organization “will vigorously defend ourselves, our staff, and our work.”

Blanche said the money was passed from the center through two different bank accounts before being loaded onto prepaid cards to give to the members of the extremist groups, which also included the National Socialist Movement and the Aryan Nations-affiliated Sadistic Souls Motorcycle Club. The group never disclosed to donors details of the informant program, he said.

“They’re required to under the laws associated with a nonprofit to have certain transparency and honesty in what they’re telling donors they’re going to spend money on and what their mission statement is and what they’re raising money doing,” he said.

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The indictment includes details on at least nine unnamed informants were paid by the SPLC through a secret program that prosecutors say began in the 1980s. Within the SPLC, they were known as field sources or “the Fs,” according to the indictment. One informant was paid more than $1 million between 2014 and 2023 while affiliated with the neo-Nazi National Alliance, the indictment said. Another was the Imperial Wizard of the United Klans of America.

The SPLC said the program was kept quiet to protect the safety of informants.

“When we began working with informants, we were living in the shadow of the height of the Civil Rights Movement, which had seen bombings at churches, state-sponsored violence against demonstrators, and the murders of activists that went unanswered by the justice system,” Fair said. “There is no question that what we learned from informants saved lives.”

The center has been targeted by Republicans

The SPLC, which is based in Montgomery, Alabama, was founded in 1971 and used civil litigation to fight white supremacist groups. The nonprofit has become a popular target among Republicans who see it as overly leftist and partisan.

The investigation could add to concerns that Trump’s Republican administration is using the Justice Department to go after conservative opponents and his critics. It follows a number of other investigations into Trump foes that have raised questions about whether the law enforcement agency has been turned into a political weapon.

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The SPLC has faced intense criticism from conservatives, who have accused it of unfairly maligning right-wing organizations as extremist groups because of their viewpoints. The center regularly condemns Trump’s rhetoric and policies around voting rights, immigration and other issues.

The center came under fresh scrutiny after the assassination last year of conservative activist Charlie Kirk brought renewed attention to its characterization of the group that Kirk founded and led. The center included a section on that group, Turning Point USA, in a report titled “The Year in Hate and Extremism 2024” that described the group as “A Case Study of the Hard Right in 2024.”

FBI Director Kash Patel said last year that the agency was severing its relationship with the center, which had long provided law enforcement with research on hate crime and domestic extremism. Patel said the center had been turned into a “partisan smear machine,” and he accused it of defaming “mainstream Americans” with its “hate map” that documents alleged anti-government and hate groups inside the United States.

House Republicans hosted a hearing centered on the SPLC in December, saying it coordinated efforts with President Joe Biden’s Democratic administration “to target Christian and conservative Americans and deprive them of their constitutional rights to free speech and free association.”

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Virginia Gov. Abigail Spanberger Stressed Pragmatism, But Politics Hound Her

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Virginia Gov. Abigail Spanberger Stressed Pragmatism, But Politics Hound Her

On the night of her resounding win in last fall’s election for Virginia governor, Abigail Spanberger told her supporters that they had sent a message to the world. “Virginia,” she said in the opening lines of her victory speech, “chose pragmatism over partisanship.”

But even then it was clear that the first big issue of her term would be as partisan as it gets: a proposed amendment by her fellow Democrats to allow them to gerrymander the state’s 11 congressional districts.

The push to redraw the Virginia map was another salvo in a barrage of redistricting spurred by President Trump in a bid to keep Republicans in control of the House in this year’s midterm elections.

Virginians vote on Tuesday on whether to adopt the proposed map, and if the “Yes” vote wins, Democrats could end up with as many as 10 seats, up from the six they hold now. The redistricting battles of the last year would end up in something of a draw, with gains for Democrats in California and Virginia offsetting gains for Republicans in Texas, Missouri and North Carolina — unless Florida lawmakers decide in the coming weeks to draw a new, more Republican-friendly map.

Historically, redrawing of congressional maps has been done each decade after the U.S. census. But with Republicans holding such a slim majority in the House, Mr. Trump began by pressing Texas to redraw its maps, touching off the wave of gerrymandering

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Virginia Democratic legislators rolled out their redistricting plan last October, setting in motion the state’s lengthy amendment process just as the campaign for governor was entering its final weeks. At the time, Ms. Spanberger expressed support for the plan, though she emphasized that its passage was up to the legislature and then to the voters.

But even if her formal role in the process was relatively minor — Ms. Spanberger signed the bill setting the date for the referendum — the politics of the effort has loomed over the first few months of her term. Her support for the amendment has drawn accusations of hypocrisy from the right and complaints from some on the left that she has not been outspoken enough in her advocacy.

“There’s always going to be somebody who wants me to do something differently,” the governor said in an interview on Saturday at a rally in support of the amendment outside a home in Northern Virginia. “I will always make someone unhappy, and I will always make someone happy.”

Ms. Spanberger, a former C.I.A. officer and three-term congresswoman, won a 15-point victory in 2025 after running on a campaign focused on pocketbook issues. Centrism has been her political brand since she was first elected to the House in 2018, flipping a district that had long leaned to the right.

Now Republicans campaigning against the amendment have made Ms. Spanberger a prime target, deriding her as “Governor Bait-and-Switch” and highlighting an interview in August 2025 in which she said she had “no plans to redistrict Virginia.”

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“This was the perfect opportunity for her to show that she is the middle-of-the-road suburban mom that she portrayed herself as,” said Glen Sturtevant, a Republican state senator. He dismissed the notion that this was an effort that had been thrust upon her, pointing out that she had signed the bill setting the date for the referendum. “She is certainly an active participant in this whole process,” he said.

Republicans have eagerly highlighted recent polls suggesting that Ms. Spanberger’s honeymoon is over, though because governors in Virginia cannot serve two consecutive terms, public approval is less of a pressure point than it might be elsewhere. Some of her political adversaries have tied the drop in her ratings to her involvement in the campaign for the amendment.

But a number of factors are at play in those sagging poll numbers. Some on the right are irked by her support of standard Democratic priorities like gun control measures and limits to cooperation with federal immigration agents.

But some of the most vociferous criticism of her from Republicans, up to and including the president, has been for a host of proposed taxes and tax hikes in the legislature — on everything from dog grooming to dry cleaning — that she in fact had nothing do with. Most of those taxes, which were floated by various lawmakers, never even came up for a vote.

But Ms. Spanberger did not publicly hit back against these attacks until recent days, a delay that some Democrats say was costly.

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“She let other people define her,” said Scott Surovell, the State Senate majority leader.

Mr. Surovell’s frustration echoed a growing discontent among Democrats about the governor’s recent moves. For all the Republican criticism of her, some operatives and lawmakers said, Ms. Spanberger has not been aggressive enough in pushing for Democratic priorities, redistricting among them.

This criticism broke out into the open in recent days, after the governor made scores of amendments to bills that had passed the General Assembly. Some lawmakers and Democratic allies accused her of unexpectedly diluting long-sought goals like expanded public sector unions and a legal retail marketplace for cannabis.

“Our party base is looking for us to stand up and fight and advocate and deliver,” said Mr. Surovell, who represents a solidly Democratic district in Northern Virginia. “It’s hard to deliver when you’re standing in the middle of the road.”

In the interview, Ms. Spanberger insisted that she supported the purpose of many of the bills but had to make amendments to ensure that her administration could implement them.

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And she said she had been explicit in her support of the redistricting effort, appearing in statewide TV ads encouraging people to vote “Yes” even as an anti-amendment campaign has sent out mailers suggesting that the governor opposes the effort.

But she said she had never been in a position to barnstorm the state as Gov. Gavin Newsom did in the months leading up to the redistricting referendum that passed in California. Mr. Newsom is a second-term governor in a much bluer state, she said, while she only recently took office and has been “in the crush of their legislative session,” with hundreds of bills to read and examine in a short period.

“Those who may not be focused on the governing and only on the politics, they’re going to want me to do politics 100 percent of the time,” she said. “And for people who care about the governing and not the politics, they’re going to want me to do governing 100 percent of the time.”

Her preference, as she has often made apparent, is for the governing over the politicking. But she acknowledged that it is all part of the job.

Asked if she lamented that the highest-profile issue of her term so far was such a polarizing matter, rather than the cost-of-living policies she emphasized on the campaign trail, she said: “Any person in elected office wants to talk about the thing they want to talk about all the time, and that’s it. So I won’t say ‘No’ to that question.”

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