Businesses warn the government as they brace for significant changes to immigration policy

A new survey from the London Chamber of Commerce and Industry (LCCI) of over 160 business leaders has revealed major concerns from London’s business community about the impact of changes to legal migration, especially for graduates and highly skilled professionals.

Only 14% of respondents believe that the Government’s anticipated immigration policies will support economic growth.

There is growing concern within the capital’s business community that the expressed intentions to curb immigration mean the Government cannot deliver the common-sense, pro-business policies that London businesses need.

The survey was conducted shortly after the Government unveiled its Immigration White Paper which laid out a significant tightening of legal routes into the UK.

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Almost half (46%) of businesses expect the new policies will lead to a reduction in legal immigration, a shift many fear will worsen labour shortages and restrict access to highly skilled international talent.

Demonstrating the depth of the concern, four out of five firms (81%) said that access to global talent is important for both the London business community and the UK economy more broadly.

Firms cited multiple reasons for employing international employees, including the inability to find workers with the right skills from the UK population (39%), as well as them having a different set of skills to many UK workers (37%).

A significant proportion of respondents, (69%) also expressed a lack of confidence in the Government’s willingness to listen to and address concerns from the business community when shaping immigration policy.

When asked about the changes London firms would most like to see, 56% called for easier access to visas aimed specifically at highly skilled migrants. Additionally, businesses identified quicker (49%), cheaper (43%) and simplified (40%) visa processes as key areas of desired change.

Unsurprisingly, businesses overwhelmingly support improving short-term business travel. Almost two thirds (63%) of firms said they would like to see freedom of movement for business travel between the UK and EU.

Commenting on the survey, Karim Fatehi OBE, Chief Executive of the London Chamber of Commerce and Industry said, “As businesses brace for significant changes to immigration policy, there is notable concern for what this could mean for their future.

“Highly skilled international workers make up an invaluable part of London’s workforce. Businesses are clear to the Government: any changes that restrict access to international talent risks damaging London’s business community, weakening growth, and undermining the city’s position on the global stage.

“While many firms are continuing to grapple with rising costs and labour shortages, policies that contribute to these headwinds will be detrimental to businesses. We strongly urge the Government to listen to the business community and work collaboratively to shape immigration policies that recognise public concern while enabling long term sustainable growth.”

Lousie Haycock, Partner at Fragomen, the global immigration law firm, added, “Concern about tightened UK immigration policies is clear.

The more welcome news is that the Migration Advisory Committee (MAC) has been commissioned to review appropriate salary thresholds and the Temporary Shortage Occupation List, with a consultation on Earned Settlement expected later this year.

“It is critical that London’s business community mobilises to respond to these challenges and, in turn, that the government meaningfully engages with businesses on what they need to grow.”