The Treasury reponse – not good enough so far

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I gather the Treasury are telling journalists who ask thta it is 'absurd' to suggest that they operate the domicile rules in a way contrary to the Race Relations Act 1976.

Let me assure them, I agree. I'm not accusing them of any such thing. They're operating the rules as they are. But those rules do discriminate on the basis of national origin, so they are illegal.

Can they refute that the rules discriminate on that basis? If so, how?