HOT TOPIC


sign a memorandum of understanding with the British to facilitate the return of thousands of illegal Indian immigrants because the UK refused to offer Indian nationals easier access to visas. A senior official at the Indian High Commission in London told


the Times of India that the UK visa system represented “a hostile environment”, adding, “We need to see some easing of migration, especially of short-term visas such as for Indian students and those coming to work for companies.” The Indian government’s objections and a chorus of protests


from so many business and professional organisations in the UK, particularly in the tech sector, appear to have brought about the ministers’ abrupt change of heart this summer – even before the government-appointed Migration Advisory Committee makes its recommendations in September on a new immigration system designed to meet the needs of the economy. “The system as it stands is dysfunctional, expensive and a brake


on growth,” opines Adam Marshall, director-general of the British Chambers of Commerce. “The Home Secretary should start by scrapping the nonsensical cap on skilled workers, which hamstrings both fast-growing firms and the public services. He should then act swiftly to combat the perception that the UK is closed for business, by stripping back the bureaucracy and costs that make it hard for firms to hire the best talent from around the world.”


Concerns from industry Problems with the Tier 2 system have been long in the making


but have now come together in a not-so-perfect storm, resulting in the cap being imposed for six months between December and the beginning of June. For some time, the government has been ratcheting up costs under the system, making it prohibitively expensive for many smaller firms, while the minimum salary threshold to qualify under the scheme has steadily increased in line with the rise in the number of applications. Additionally, the rise in the number of EU nationals heading


home because of Brexit and the drop in the number of Europeans coming to the UK has been exacerbated by the fact the employment rate among the local population is at an all-time high. Jonathan Portes, former chief economist at the Cabinet Office


and now professor of economics and public policy at King’s College London, describes the cap as “economic self-harm,” adding, “It was always a mad policy but it didn’t matter so much when enough Europeans wanted to come here.” Simply increasing, or even abolishing, the 20,700 cap would still


seem to be unacceptable to a government that remains committed to reducing annual net migration from the current 240,000 a year to below 100,000. But business leaders are equally adamant the quota either needs to go or be massively increased. Russ Shaw, founder of the Tech London Advocates (TLA) network


BUSINESSES HAIL GO-AHEAD FOR HEATHROW EXPANSION


UK business chiefs have applauded the government’s decision to go ahead with construction of a third runway at Heathrow Airport. After a half-century of discussion of how to relieve pressure on southeast England’s overcrowded airspace, transport secretary Chris Grayling told the House of Commons that the Cabinet had decided to back expansion at the world’s busiest commercial airport. The decision, however, will still have to be approved by parliament, probably in early July, and there is opposition both within the Conservative Party - not least by Foreign Secretary Boris Johnson, who represents a constituency near Heathrow - and within the opposition Labour Party. Mr Grayling told MPs, “Today, I am laying before


Parliament our final proposal for an Airports National Policy Statement (NPS) which signals our commitment to securing global connectivity, creating tens of thousands of local jobs and apprenticeships, and boosting our economy for future generations by expanding Heathrow Airport. My department has met with local residents and fully understands their strength of feeling, but this is a decision taken in the national interest and based on detailed evidence.” Josh Hardie, deputy director-general of the CBI,


added, “It’s fantastic that the new runway at Heathrow is getting closer to take-off. All the more so as the UK has waited for nearly half a century for this decision. Expanding our aviation capacity, and creating new flight routes to rapidly growing markets, is mission critical to ensuring Britain can compete on the post-Brexit world stage.”


of more than 6,000 tech experts and entrepreneurs, welcomes the move to remove NHS staff from the Tier 2 system. “We are starting to see positive engagement from the government,” he says. “Reducing the competition between the private and public


sectors for skilled overseas workers is a welcomed first step – the priority must be to increase the current cap until supply meets demand. Access to talent remains a prominent concern but by taking immediate steps and aiming for one million tech workers by 2023, we can build for future growth.” Whatever the solution, the CBI is adamant something needs


to be done...and swiftly. Restricting access to skilled workers is already adversely affecting many sectors in the UK economy, says Carolyn Fairbairn, the organisation’s director-general. “With record employment rates and without access to EU workers, firms are unable to get the staff they need to grow. For business, this issue is as important as our future trade deal with the EU. Training British workers isn’t enough on its own, nor is just hiring from overseas – business needs both.”


The Home Office has commissioned the Migration Advisory Committee (MAC) to report on the impact of the UK labour market after the UK’s exit from the European Union and how the UK’s immigration system should be aligned with a modern industrial strategy. The government has set a deadline of September 2018 to report back on the commission.


For further information on changes to the immigration rules, visit www.gov.uk/government/news/changes-to-the- immigration-rules--2


The changes will come into effect on 6 July 2018


For immigration news, advice and live updates, visit relocatemagazine.com/immigration


8 | Relocate | Summer 2018


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