Business calls for clarity and collaboration after MAC report
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Businesses have called on the government for clarity and collaboration in building the UK’s new immigration system, after an influential report was published this morning.
The Migration Advisory Committee (MAC) this morning recommended a two-pronged approach combining the Australian-style points system so beloved of Brexiters alongside a salary threshold.
However the MAC argued that the type of jobs included under the salary threshold should be broadened out to include medium skilled alongside highly skilled, bringing the overall average down £4,400 to £25,600.
While giving this a cautious welcome, business groups said they needed more clarity and urged the government to work with them before drawing up the immigration bill, expected to be brought forward in March.
Matthew Fell, chief UK policy director of the Confederation of British Industry, said: “Businesses know free movement is ending. A new immigration system that is fair and sustainable from day one is as important for many firms as our future trading relationships.
“Reducing the headline salary threshold will be welcomed by businesses, which argued that a £30,000 cap would be damaging. Yet even with a commitment to world class business training, it remains unclear how firms can hire for mid-skilled roles such as LGV drivers, joiners and lab technicians who don’t meet the £25,600 test.
“Flexibility will be needed to build a system that lets wages rise where there are shortages while helping businesses to access the skills and labour needed to grow all parts of the UK.
“Business looks forward to working in partnership with government to get this new system right.”
The British Chamber of Commerce’s head of of people policy Jane Gratton echoed that view, saying: “Businesses want a flexible immigration system that provides access to the staff they need, without costly delays or red tape.
“While a reduction in the salary threshold is welcome and the list of eligible jobs has been expanded, it is disappointing that recommendations did not take account of regional salary differences. This risks limiting access to skills for companies in regions and nations across the UK.
“The MAC has also backed our call for a points-based route for skilled workers to enter the UK without a job offer. Businesses should be consulted on how points are awarded to ensure the economy has the right skills at the right time.
“While companies are investing more in homegrown skills, they will continue to need access to migrant skills at all levels for the foreseeable future. At a time of critical skills shortages, the government must be clear about its plans and allow businesses ample time to adapt.”
Miles Celic, chief executive of TheCityUK, said: “Britain’s success is built on openness. Being able to attract and retain the most talented people is a critical part of that. It is a top priority for business leaders in financial and related professional services right across the country. The UK’s future immigration system must be fit for the country’s needs, be future-focused and fair.
“Today’s report builds on many of the recommendations we made in our report with EY in 2018 – one of those being the recommendation to remove the cap and lower the salary threshold for tier 2 visas. To drive growth across all parts of the country, government should work with the industry to help firms grow their regional and national footprint. For a people-driven industry like ours, that means boots on the ground with a wide range of skills and experience.”
Jasmine Whitbread, chief executive of London First, added:
“It is positive that the MAC has met business halfway on the salary threshold recognising that £30,000 would decimate key sectors such as construction, hospitality and social care. But it should have gone further – recommending it be set at around £20,000 would have ensured we could keep the economy at full strength.
“The MAC report makes clear that a future immigration system that clamps down too heavily on unskilled workers will hit total GDP. Firms across the capital and beyond want to support the roll-out of the new points based system, but must have a seat at the table as it is finalised and be given time to prepare for changes.”
Mike Cherry, national chairman of the Federation of Small Businesses (FSB), said: “It is pleasing to see that the committee has listened to FSB’s arguments for a salary threshold below £30,000, as well as an unsponsored route, which selects migrants based on their personal characteristics and allows for regional variation.
“The challenge now for the government will be to have a new, employer-responsive immigration system in place in time for the end of the transition period eleven months from now, and allowing sufficient time for small business employers to prepare. FSB looks forward to working with the government on this.”