Pace of immigration changes must work for business – Chamber

Business leaders in Greater Birmingham today warned businesses cannot afford to lose access to the international talent pipeline.

Prime Minister Keir Starmer yesterday announced an overhaul of the legal immigration system, including tightening overseas carer recruitment and English language tests.

The 82-page document outlining the proposed changes also includes the creation of a Labour Market Evidence Group to use data to make decisions about the state of the jobs market, an increase to the minimum salary requirement for skilled workers at graduate level and new requirements for educational institutions to recruit international students.  

Social care visas could be scrapped, while only occupations with long-term shortages will be able to recruit from abroad, as long as a workforce strategy is in place and employers are committed to increasing domestic recruitment.

Greater Birmingham Chambers of Commerce warned the proposals could place an additional burden on firms who are already struggling to fill vacancies.

Director of external affairs Raj Kandola (pictured) said: "We’ve long called for a more strategic, joined-up approach to immigration planning that reflects the real skills needs on the ground.

“Better coordination between the Migration Advisory Committee, Skills England, and government is essential to ensure that businesses can access the right talent, in the right places, at the right time.

“The West Midlands and Warwickshire Local Skills Improvement Plan, led by the Chambers of Commerce across the region, is well placed to contribute to this strategic thinking, having gathered insights from more than 1,000 engagements with local employers on their current and future skilled needs.

“But while work is underway to strengthen the domestic talent pipeline, we mustn’t lose access to international skills in the process.

“Many businesses only turn to the immigration system when every other option has been exhausted — yet the further rise in fees to use what is already a hugely expensive immigration system will place additional burdens on firms who need to fill urgent vacancies. 

“This comes at a time when businesses are already facing mounting cost pressures. For smaller firms in particular, the burden is becoming unsustainable.”

On the wider skills challenges facing businesses, Mr Kandola added: “Tackling the UK’s skills crisis requires urgent action. That means helping more people into work, boosting vocational training, and reforming the Apprenticeship Levy to be more flexible and responsive to employer needs.

“Yesterday’s announcement also doesn’t change our long-held call for a balanced Youth Mobility scheme between the UK and the EU, including school visits and exchanges, and time-limited work opportunities for young people on both sides.

“The West Midlands is also home to world-class higher education institutions, and research shows that international students bring huge benefits to the economy, both regionally and nationally.

“We urge the government to carefully review the impact that the proposed levy on universities' international student income could have, on the higher education sector, the attractiveness of the UK as a study destination, and ultimately, economic growth.”

During the last quarter, 60 per cent of firms in Greater Birmingham who tried to recruit experienced difficulties in doing so.

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