Immigration charges
could create
London skills gap

The London Chamber of Commerce has warned that rising immigration costs may lead to a skills gap in the UK’s labour market.

UK employers face steadily rising Home Office fees should they seek to hire a non-EEA national in the UK, and with many small medium business already struggling to recruit the migrant talent they need, the upcoming changes to UK immigration legislation will only serve to compound their straining budgets.

From April 2017, employers will be asked to pay any new Tier 2 migrant hires 44% more than they currently do now, and even more importantly April will see the introduction of the Immigration Skills Charge (ISC).

This new charge will cost UK businesses an upfront fee of £1,000 for each non-EEA hire, per the number of years for which their employment visa is valid.

A new survey has revealed that less than a quarter (21%) of London businesses would be able to afford the new ISC, and 45% feel that the new charge will lead to a skills gap in their organisations should the resident labour market fail to meet their business’s needs.

Only 36% of London business decision makers say that the new fee would encourage them to hire and train more British talent, however, suggesting that many UK companies may indeed attempt to absorb these extra costs.

Smith Stone Walters advises UK business owners to look ahead at the various changes which are to be introduced to the UK Immigration Rules in two stages over the next six months, and prepare their organisations accordingly.

The first batch of amendments will arrive this October, shortly followed by a second set in April 2017.

 

More on this topic:

Immigration skills charge for UK employers

New minimum salary for Tier 2 hires

Tier 2 changes announced!

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