In his blog, BBC Business Editor Robert Preston adds his voice to the growing business and political lobby over concerns that the government's interim immigration cap is harming the UK economy.
Mr Preston said:
“As luck would have it, bumped into the boss of one of our largest manufacturing exporters last night, who complained that his ability to expand in the UK was being seriously hampered by the new restrictions on his ability to hire from outside the European Union, that have been imposed by the coalition government.”
He continued:
“My manufacturer says that the pool of highly skilled people just isn't wide enough or deep enough in the UK. And in recent weeks I have heard identical comments from bankers, software designers, drug makers and so on.
“So if they want to invest and grow in the UK, they argue that they must have the ability to import the best talent from the rest of the world.”
Mr Preston points out that if Britain wants to compete in an increasingly competitive world they must attract the best talent:
“The problem is that the required nurturing of so-called human capital takes years.
And British-based businesses want to expand now.
“Here's the serious concern: if there are skill constraints on their ability to grow in the UK, they'll take their investment to other countries where the appropriate skills can be obtained.
“That would be a concern at a time when public spending cuts are having a seriously dampening impact on an already weak economy - and when the government is relying on private-sector growth to take up the slack.”
He concludes:
“What many businesses have said to me is that it is all very well for the government to turn to them to re-stimulate the economy, and they would like to rise to the challenge, but restricting their ability to buy from across the world is a binding, painful fetter.”
This week a cabinet minister, UK Business Secretary Vince Cable, unusually spoke out against official government policy.
In a statement to the FT, the Liberal Democrat MP said that the immigration rules and immigration cap are causing "a lot of damage to business industry’.
Last week Conservative London Mayor Boris Johnson broke from his own party ranks over immigration, warning that plans to limit the number of migrants to Britain will damage the economy.
Care sector depends on migrant workers
The financial and industrial sectors are not alone in depending on non-EU migrant workers to fill skills gaps.
The care industry and NHS would not be able to operate without foreign workers and students filling the vacancies in medical staff, nursing, care, cleaning and catering.
The number of migrant workers and students coming into the UK has already been reduced this year by tweaking the point based system or changing immigration Rules, as well as slashing the shortage occupations list for skilled workers coming in under Tier 2.
See also:
London Mayor Boris Johnson demands immigration cap is scrapped
Government MAC adviser says dependant visas must be cut as part of immigration cap
UK Border Agency announce new fee increase for immigration and nationality applications
Minister to announce crackdown on student visa numbers today
If you need any immigration advice or help with Sponsorship or Work Permits, Visa, ILR/Settlement, Citizenship, dependant visa or an appeal against a refusal please email:
info@immigrationmatters.co.uk or visit www.immigrationmatters.co.uk
Showing posts with label Vice Cable. Show all posts
Showing posts with label Vice Cable. Show all posts
Sunday, September 19, 2010
Monday, June 28, 2010
Lib Dem's Cable defends temporary cap on non-EU migration
There have been several media reports that the coalition government has watered down its flagship ‘immigration cap’ election pledge after a cabinet revolt.
The BBC reports that the Business Secretary Vince Cable defended government plans for a temporary cap on migrant workers from outside the EU, but said it must be implemented in a "flexible way".
The government has informed the media that it will announce a limit of 24,100 until April 2011 while the coalition consults on introducing a permanent cap.
Mr Cable said ministers had "signed up" to the principle of a cap, but they must "accommodate" the needs of certain industries as well as universities.
Labour has said an arbitrary immigration cap is "fraught with difficulty".
The Lib Dems opposed Conservative proposals for an annual cap before the election - but agreed to back the proposal as part of their coalition agreement.
'Public reassurance'
The temporary cap, due to be announced today by Home Secretary Theresa May, is aimed at preventing a rush of applications before a permanent figure is agreed.
Mr Cable told the BBC's Andrew Marr show that it was designed to "pre-empt a flood" of new arrivals in the period before permanent arrangements came into force.
Businesses have warned that the cap could stop them from filling vacancies at times of high demand and also recruiting people with specific skills in areas such as catering and social care.
Critics have said the measures could have a detrimental effect on the higher education sector, which is reliant for much of its income on foreign students.
"The new regime has to accommodate those concerns," Mr Cable said. "It has to be implemented in a flexible way."
The government had to "reassure the public" that there was an effective system of immigration controls in place but also to ensure the economy was not damaged as it seeks to recover from the effects of the recession.
'Confident'
He said talks between Conservative and Lib Dem ministers on the issue had been "collegiate".
"I am confident the way it is being implemented will achieve these objectives," he said.
During the election campaign David Cameron said he wanted to reduce net annual migration - the number of immigrants minus the number emigrating from the UK - from hundreds of thousands currently to tens of thousands.
Labour says any policy needs to be "tough but fair" and that the points-based system it introduced in 2008 has succeeded in reducing immigration levels and stopping unskilled workers from outside the EU coming into the UK.
The home secretary will give details of the consultation process ministers will undertake before deciding what the permanent cap should be.
It has been reported that this could include the option of exempting job categories to reflect skills shortages in some areas.
Mr Cable also defended the Budget, saying many of the spending cuts and tax rises announced by Chancellor George Osborne were "unpleasant" but action was needed to deal with the "horrendous" financial situation the coalition had inherited.
Measures such as raising the income tax threshold for the lowest-paid - as well maintaining the top rate 50p tax band and cutting pension tax relief for the better-off - helped offset the VAT increase in terms of where the burden fell, he added.
"If you look at the package as a whole, that makes the balance much better and more equitable," he said.
He also played down talk that Lib Dem MPs could seek to table amendments to the Budget following comments by the party's Deputy Leader Simon Hughes last week.
"We have a balanced package as it is," he added. "We are not reopening it." Source: BBC
During the election campaign the Liberal's were the only main party to suggest an amnesty as a way of dealing with the estimated 750,000 immigrants illegally in the UK. Although their honesty did not go down too well with voters they now find themselves, through the coalition government, in a position to influence immigration policy.
See also:
Immediate cap on non-EU migrant workers to be introduced by Home Office
Demographic shift ‘will cut UK growth’ according to ONS figures
Immigration cap ‘would damage hospitality sector’ say REC
If you need any immigration advice or help with Sponsorship or Work Permits, Visa or an appeal against a refusal please email:
info@immigrationmatters.co.uk or visit www.immigrationmatters.co.uk
The BBC reports that the Business Secretary Vince Cable defended government plans for a temporary cap on migrant workers from outside the EU, but said it must be implemented in a "flexible way".
The government has informed the media that it will announce a limit of 24,100 until April 2011 while the coalition consults on introducing a permanent cap.
Mr Cable said ministers had "signed up" to the principle of a cap, but they must "accommodate" the needs of certain industries as well as universities.
Labour has said an arbitrary immigration cap is "fraught with difficulty".
The Lib Dems opposed Conservative proposals for an annual cap before the election - but agreed to back the proposal as part of their coalition agreement.
'Public reassurance'
The temporary cap, due to be announced today by Home Secretary Theresa May, is aimed at preventing a rush of applications before a permanent figure is agreed.
Mr Cable told the BBC's Andrew Marr show that it was designed to "pre-empt a flood" of new arrivals in the period before permanent arrangements came into force.
Businesses have warned that the cap could stop them from filling vacancies at times of high demand and also recruiting people with specific skills in areas such as catering and social care.
Critics have said the measures could have a detrimental effect on the higher education sector, which is reliant for much of its income on foreign students.
"The new regime has to accommodate those concerns," Mr Cable said. "It has to be implemented in a flexible way."
The government had to "reassure the public" that there was an effective system of immigration controls in place but also to ensure the economy was not damaged as it seeks to recover from the effects of the recession.
'Confident'
He said talks between Conservative and Lib Dem ministers on the issue had been "collegiate".
"I am confident the way it is being implemented will achieve these objectives," he said.
During the election campaign David Cameron said he wanted to reduce net annual migration - the number of immigrants minus the number emigrating from the UK - from hundreds of thousands currently to tens of thousands.
Labour says any policy needs to be "tough but fair" and that the points-based system it introduced in 2008 has succeeded in reducing immigration levels and stopping unskilled workers from outside the EU coming into the UK.
The home secretary will give details of the consultation process ministers will undertake before deciding what the permanent cap should be.
It has been reported that this could include the option of exempting job categories to reflect skills shortages in some areas.
Mr Cable also defended the Budget, saying many of the spending cuts and tax rises announced by Chancellor George Osborne were "unpleasant" but action was needed to deal with the "horrendous" financial situation the coalition had inherited.
Measures such as raising the income tax threshold for the lowest-paid - as well maintaining the top rate 50p tax band and cutting pension tax relief for the better-off - helped offset the VAT increase in terms of where the burden fell, he added.
"If you look at the package as a whole, that makes the balance much better and more equitable," he said.
He also played down talk that Lib Dem MPs could seek to table amendments to the Budget following comments by the party's Deputy Leader Simon Hughes last week.
"We have a balanced package as it is," he added. "We are not reopening it." Source: BBC
During the election campaign the Liberal's were the only main party to suggest an amnesty as a way of dealing with the estimated 750,000 immigrants illegally in the UK. Although their honesty did not go down too well with voters they now find themselves, through the coalition government, in a position to influence immigration policy.
See also:
Immediate cap on non-EU migrant workers to be introduced by Home Office
Demographic shift ‘will cut UK growth’ according to ONS figures
Immigration cap ‘would damage hospitality sector’ say REC
If you need any immigration advice or help with Sponsorship or Work Permits, Visa or an appeal against a refusal please email:
info@immigrationmatters.co.uk or visit www.immigrationmatters.co.uk
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