Wednesday, October 12, 2022
Tories reaping what they sowed
It appears that new ministers in Liz Truss's administration are just now beginning to realise that careless talk costs jobs. The chancellor, in particular, has caused chaos on the markets with his mini budget, his u-turns and now, his statement that support for pension funds has to end.
As a result, the pound has dropped to record lows, with a consequential impact for exporters, the UK economy has shrunk by 0.3% on the back of a manufacturing slump, and mortgage rates have effectively doubled, adding to the hardship felt by many families.
For the Brexiteers, whose justification for trashing our trade deal with the biggest free trade block in the world, the EU, was that we would make our own deals to replace it, the last few years must have been a major disappointment.
For the Brexiteers, whose justification for trashing our trade deal with the biggest free trade block in the world, the EU, was that we would make our own deals to replace it, the last few years must have been a major disappointment.
Not only is that lucrative deal with the USA now a complete non-starter, but the ideological ramblings of Brexit-supporting ministers are endangering deals that have already been negotiated.
According to the Times, Liz Truss’s flagship trade deal with India is on the “verge of collapse” after Indian ministers reacted furiously to comments by Suella Braverman criticising migrants from their country:
Last week the home secretary said she had “concerns” about the trade deal because it would increase migration to the UK and Indians represented the largest group of visa overstayers.
She told The Spectator magazine: “I do have some reservations. Look at migration in this country — the largest group of people who overstay are Indian migrants.”
The comments sparked a furious reaction from Indian government ministers and officials, sources from both governments have told The Times.
A source in Delhi said they were “shocked and disappointed” by the “disrespectful” remarks.
Indian government sources said the “relationship has taken a step back” following Braverman’s comments, adding: “There’s still a lot of goodwill but if certain individuals are still embedded in the government, it will paralyse the talks”. They said Truss should publicly “disassociate” herself from Braverman’s words if she wanted to revive the deal.
Delhi is demanding more work and study visas for its citizens, including a new visa that would emulate agreements struck with Australia and New Zealand that allow under-35s to live in the UK for up to three years. The enhanced terms for Indian migrants are referred to as “mobility” in talks.
A senior UK government source said: “Mobility has been the key Indian ask and everything else — financial services, banking, education, rules of origin on whisky, etc, hinges on the mobility ask. And Suella has gone and pulled the rug from under that mobility ask.”
A UK government source who has spoken to Indian officials involved in the trade negotiations said: “They were apoplectic. Mad doesn’t even come close to describing how angry they are.”
It was always going to be the case that the Tories obsession with immigration would undermine our economic growth and scupper trade deals. Now we are seeing it in action.
According to the Times, Liz Truss’s flagship trade deal with India is on the “verge of collapse” after Indian ministers reacted furiously to comments by Suella Braverman criticising migrants from their country:
Last week the home secretary said she had “concerns” about the trade deal because it would increase migration to the UK and Indians represented the largest group of visa overstayers.
She told The Spectator magazine: “I do have some reservations. Look at migration in this country — the largest group of people who overstay are Indian migrants.”
The comments sparked a furious reaction from Indian government ministers and officials, sources from both governments have told The Times.
A source in Delhi said they were “shocked and disappointed” by the “disrespectful” remarks.
Indian government sources said the “relationship has taken a step back” following Braverman’s comments, adding: “There’s still a lot of goodwill but if certain individuals are still embedded in the government, it will paralyse the talks”. They said Truss should publicly “disassociate” herself from Braverman’s words if she wanted to revive the deal.
Delhi is demanding more work and study visas for its citizens, including a new visa that would emulate agreements struck with Australia and New Zealand that allow under-35s to live in the UK for up to three years. The enhanced terms for Indian migrants are referred to as “mobility” in talks.
A senior UK government source said: “Mobility has been the key Indian ask and everything else — financial services, banking, education, rules of origin on whisky, etc, hinges on the mobility ask. And Suella has gone and pulled the rug from under that mobility ask.”
A UK government source who has spoken to Indian officials involved in the trade negotiations said: “They were apoplectic. Mad doesn’t even come close to describing how angry they are.”
It was always going to be the case that the Tories obsession with immigration would undermine our economic growth and scupper trade deals. Now we are seeing it in action.
