15 November 2011
Migrant cap raises concerns over UK business environment
The introduction of new Tier 1 and Tier 2 non-EU economic
migration limits in April 2011 has had a negative impact on the
perceived attractiveness of the UK and London for international
firms.
Uncertainty over the direction of UK migration limits has
resulted in businesses postponing expansion and growth plans,
according to a new City of London Corporation report.
Access to Global Talent - The impact of migration limits on
UK financial and professional business services, authored by
Consensus Research, shows that although most businesses have been
able to secure visas up between April and October 2011 they have
faced additional costs due to the changing migration framework.
Businesses also voiced concerns that although the migrant cap
for firms have not been reached there is a real danger of damaging
future competitiveness by basing limits on a period of slow
economic growth while austerity measures are being implemented.
Continued Government consultations around economic migrants and
students have added to uncertainty over what direction policy will
take future.
Policy Chairman at the City of London Corporation, Stuart
Fraser, said:
“The imperative to manage the UK’s net migration figure is clear
and HM Government's commitment to doing so is respected. However
this must not limit our ability to attract skilled workers from the
international pool of increasingly mobile and talented people.
“This is not just a financial services issue or one that is
limited to London: an absolute, rigid or even reduced cap on
migration is potentially damaging to all areas of the economy
drawing on international talent, such as IT and life sciences. This
issue is therefore about economic growth across the UK rather than
just the needs of City firms.
“Against the current backdrop of continuing uncertainty, some
global firms are reported to be considering whether they could move
key business areas out of the UK. International companies such as
these are also likely to employ large numbers of British workers,
with relocation having the potential to damage employment levels,
the UK’s pool of skills and the tax revenue.
“A predictable operating environment for business is essential
in planning business investment and promoting economic growth. If
immigration is to be capped, we must find a way for the UK’s
business to attract the international talent they need. Un-capped
Intra-Company Transfers remain one such method.”
Ends
Notes to editors
- Press enquiries:
Sanjay Odedra, Media Officer, City of London Corporation
Tel 020 7332 1835 / Mobile 07831 542856
Email
sanjay.odedra@cityoflondon.gov.uk
- About the City of London Corporation:
The City of London Corporation is a uniquely diverse organisation.
It supports and promotes the City as the world leader in
international finance and business services and provides local
services and policing for those working in, living in and visiting
the Square Mile. It also provides valued services to London and the
nation. These include the Barbican Centre and the Guildhall School
of Music & Drama; the Guildhall Library and Art Gallery and
London Metropolitan Archive; a range of education provision
(including three City Academies); five Thames bridges (including
Tower Bridge and the Millennium Bridge); the Central Criminal Court
at Old Bailey; over 10,000 acres of open spaces (including
Hampstead Heath and Epping Forest), and three wholesale food
markets. It is also London’s Port Health Authority and runs the
Animal Reception Centre at Heathrow. It works in partnership with
neighbouring boroughs on the regeneration of surrounding areas and
the City Bridge Trust, which it oversees, donates more than £15m to
charity annually.
- Consensus Research:
Consensus Research is a results-driven consultancy specialising in
issues affecting the corporate finance community, including
international financial institutions and professional services
providers. Consensus provides incisive research to a wide range of
clients across the City and beyond.
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Download the report here (PDF,
475kb)