RSA argues
cap on Tier 2 migrants
should be lifted

4 November 2014

Unleashing Metro Growth is the final report from the City Growth Commission, part of the RSA (Royal Society for the encouragement of Arts, Manufactures and Commerce) think tank, containing a full set of recommendations for national and local government. It makes the case for and explains how, cities can take a new role in our political economy, creating stronger and more inclusive sustainable growth in the UK. Additional powers are also being negotiated for Scotland.

‘In a world in which cities are the new drivers of growth, decentralising our political economy will boost GDP and enable our major metros to achieve their social and economic potential.’

– Ben Lucas, Chair of Public Services, RSA and City Growth Commissioner

Arguing that immigration is one of the key responsibilities which should be devolved to local powers, the report has called for more power and responsibility to be devolved from Whitehall to individual UK cities. The think tank highlights the fact that many SMEs in cities across the UK are failing to meet their recruitment needs through immigration because the system is costly and complex, and are struggling to find a satisfactory amount of highly-skilled workers, particularly as London acts as a magnet for global talent. The City Growth Commission concluded that, if the UK persists in restricting immigration in order to meet its growth-inhibiting net migration target, there is a risk that households in all metros will suffer in the long-term as GDP falls and average incomes are squeezed.

According to the report, such a devolution of power has the potential to boost the economic output of the UK’s 15 largest cities by £79 billion per annum. In order to facilitate such promising economic growth, the RSA has recommended the reforming of national immigration policies in favour of taking a metro-led approach, including lifting the cap on Tier 2 skilled immigration to signal that the UK is keen to attract the brightest and best.

Other key recommendations made by the report include significant shifts in policy making and financial decisions from centre to metro locations and the devolution of adult skills budgets, as well as additional support for universities to help fuel local economies.

In response to the report, Chancellor of the Exchequer, George Osborne, said:

‘…[the report] makes a strong contribution to delivering the northern powerhouse I am determined to build’.

The Deputy Prime Minister, Nick Clegg, has stated that, although Growth Deals and City Deals have already granted local councils more freedom to control how they spend business rates raised in their area and freed up billions which can be spent at a local level, more must be done:

‘Rebalancing and strengthening the economy right across Britain has been something the Liberal Democrats have been fighting for in government ever since we entered the coalition. We need to give our cities the space and the power to grow’.

Despite the report being warmly welcomed by politicians from across the board, it remains to be seen which recommendations, if any at all, will be actioned following the Northern Futures summit in November.

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