Immigration reforms won’t solve labour shortages, businesses warn
Government plans to draw back immigration levels and tighten criteria for visas will put efforts to fill labour shortages at risk, with leading industry groups urging Keir Starmer to fast-track apprenticeship reforms.
The immigration white paper, which was published on Monday, set out plans to end specific care worker visas, strengthen the skills criteria needed for migrants to obtain a visa and increase taxes paid by employers and universities to recruit foreign workers.
However, the plans have drawn mixed reactions from leading industry bodies, given the precarious state of the UK labour market and jaded business confidence.
While industry bodies have generally welcomed reforms linking immigration to training, businesses are worried that labour shortages and skills gaps will not be effectively filled.
“Businesses should not be long-term reliant on immigration to deliver growth, but immigration policy is preventing businesses from accessing critical skills to deliver investment, putting at risk growth and jobs in the rest of their workforce,” Rain Newton-Smith, chief executive at the Confederation of British Industry (CBI), said.
“Businesses will also carefully consider the detail of proposals to limit visas for skilled jobs below degree level. Labour shortages can’t be solved by training alone.
“With the UK’s workforce set to shrink in the future as our population ages, it’s more important than ever that we support the business investment needed to underpin tech adoption and training.”
The Institute of Director (IoD)’s chief policy advisor, Alex Hall-Chen, suggested the changes to immigration policies lacked sufficient details on training.
“The government’s emphasis on investing in upskilling and reskilling the domestic labour force is welcome. However, the strategy announced today risks damaging already fragile economic growth by further limiting employers’ ability to fill urgent skills gaps,” Hall-Chen said.
High talent immigration not accounting for ‘full picture’
The government’s immigration white paper is one of several set-piece announcements expected to be made in the next few months.
Business groups are eagerly awaiting the publication of Labour’s industrial strategy, which could include details on training and apprenticeships.
The spending review, due in the summer, may also reveal plans on how Chancellor Reeves and other Cabinet ministers plan to bring inactive workers back into the labour market.
Certain kinds of migration will be boosted in the government’s new plans.
The number of people arriving on “very high talent routes” through specific high-skilled worker visas will be increased as the government said it wanted to attract a “highly prized cohort” of entrepreneurs and leaders to the UK.
Kate Shoesmith, deputy chief executive at Recruitment and Employment Confederation (REC), said the changes were “encouraging” but had too narrow a remit.
“If we are serious about driving growth and capitalising on opportunities presented by AI and carbon neutral, we also need an immigration system that reflects the full picture of workforce needs, not just the top end stars,” Shoesmith said.
“That starts with building data-led workforce strategies and supporting skilled and semi-skilled roles in those same vital sectors as well as the sectors that underpin growth.