A new report from an influential House of Commons committee has revealed that the proposed cap on immigration could have a detrimental effect on the UK economy.
The home affairs committee also found that less than 20% of migrants would be affected by the cap.
It is now thought that David Cameron will bow to the concerns of business and umbrella companies and significantly increase the amount of non European immigrants who are allowed entry to the UK each year.
Currently, 2,600 immigrants from outside the European Union are permitted entry every month but this limit is likely to be increased to 4,000 in 2011. The final figure is still under discussion but it will be revealed later this month.
The Business Secretary, Vince Cable, has been outspoken in his criticism of the coalition’s previous plan and London mayor, Boris Johnson, has warned of potential dangers of the cap.
In September, Cable spoke to people in the City and discovered that 2 investment banks recruited hundreds of people from outside the EU. Since the cap was introduced they have only been allowed between 30 and 40 with the result that some of their operations have been moved to Hong Kong. He also said he had a file full of examples of other companies thinking about relocating overseas because key staff members are not allowed to come to London. The Prime Minister seems to have taken this on board and is now believed to have become more supportive of his Business Secretary’s view.
Meanwhile, APSCo is still concerned about the intra-company transfer rule that allows IT workers to enter Britain. As chief executive Ann Swain pointed out, we have an existing pool of talented IT contractors already resident in the UK. Most of these IT workers have generic skills that can easily be found in this country.
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