The Migration Advisory Committee has said the UK economy could be permanently damaged if the government persists in restricting immigration for skilled workers from outside the EU.
In April this year, the coalition put in place a permanent cap on the number of skilled immigrant Tier 1 and Tier 2 visas. The Tier 1 (General) category disappeared and in its place we have a Tier 1 (Exceptional Talent) category, but hardly any applicants meet the requirements. A cap of approximately 21,000 was put on Tier 2 visas for people who have received the offer of a job from an employer in the UK.
Damian Green, the immigration minister, said the government plans to reduce the number of immigrants to tens of thousands rather than hundreds of thousands.
However, the Migration Advisory Committee has now said that when the UK reduces the number of non-EU skilled migrants by 10,000, the UK economy loses more than half a billion pounds. This could be disastrous for an economy such as ours that it still trying to recover from the 2008 global economic crisis.
The report went on to suggest that the present levels of non-EU migrants with Tier 1 and Tier 2 visas have a positive impact on GDP per capita. They make a positive contribution to public finances and have an important role to play in the provision of health, education and social services.
Furthermore, the Committee said that immigration cutbacks would not be spread evenly and could severely impact certain sectors.
The REC has been quick to respond to the question of employment-related settlement. The UK Border Agency launched a Consultation asking for opinions on granting indefinite leave to stay to Tier 1 and 2 visa holders who come to work in the UK.
Gillian Econopouly, the head of public policy at the REC, said UK employers must be able to access the best global talent and recent initiatives to create a flexible immigration system for entrepreneurs and exceptionally talented workers are particularly welcome. However, she pointed out that the Consultation proposals close off settlement routes and a result, the UK might become less attractive to highly skilled workers.
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