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Saturday 29 April 2023 7:30 am  |  Updated:  Saturday 29 April 2023 11:19 am

UK must change post-Brexit visa rules to help firms with labour shortages, report says

By: Jessica Frank-Keyes

Political Reporter

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Prime Minister Rishi Sunak and EU Commission President Ursula von der Leyen (Photo by Dan Kitwood/Getty Images)
Prime Minister Rishi Sunak and EU Commission President Ursula von der Leyen (Photo by Dan Kitwood/Getty Images)

The UK government needs to change post-Brexit visa rules in order to help firms overcome worsening labour shortages, UK lawmakers have said in a new report.

The complexity of visa regulations in the wake of Britain exiting the EU has proved a “significant barrier to mobility”, a report by the House of Lords European Affairs committee said, and that the government needed to do more to address “well-documented labour shortages”.

The report, titled ‘The future UK-EU relationship’, identified hospitality, catering, tourism, transport, logistics and storage, as well as production and manufacturing as the sectors “most severely impacted”.

Lord Kinnoull, committee chairman, said: “The UK’s post-Brexit relationship with the EU has regrettably come under significant strain over the period since the trade and cooperation agreement (TCA) came into force, characterised by tension and mistrust.  

“A particular theme running through our report was the significant impact of post-Brexit barriers to mobility of young workers and professionals in the early stages of their careers.”

He added: “The government must now intensify engagement with the EU to ensure matters impacting the parties are properly discussed and resolved to the benefit of both parties.”

Recommendations on addressing labour shortages included: monitoring the impact of domestic migration rules; adjusting visa eligibility criteria in response to labour shortages in specific sectors; and raising mobility concerns with the EU and individual member states. 

Reacting to the report, manufacturing lobby Make UK, agreed that the post-Brexit immigration system has contributed to labour shortages, with fewer than one in four manufactures able to fill all of their vacancies.

“It is welcome that the Shortage Occupation List for skilled worker visas is being reviewed; however, the significant delays to this process throughout the last 12 months mean that manufacturers are dismayed that any changes may not materialise until 2024,” Jamie Cater, senior employment policy manager at the group, said.

Read more

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According to a new report from UK in a Changing Europe (UKICE), UK services trade has been more resilient than almost all other advanced economies.

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