The call for short-term worker visas in London has become increasingly urgent, as business leaders warn of potential economic repercussions from strict immigration policies. They advocate for a faster visa process to maintain the city’s competitive advantage.
Economic Concerns Highlighted by LCCI
The London Chamber of Commerce and Industry (LCCI) realizes that tightening the immigration policies will have consequences on the economy. In their latest quarterly economic survey, the expectation of the executives sampled is improving, but they emphasize that visa accessibility is essential for sustaining this momentum.
Karim Fatehi, CEO of LCCI, stated, “London’s success is built on its openness and diversity.” He underscored the need for a visa and immigration framework that supports economic growth and employment in the capital.
Recommendations for Visa System Improvements
Fatehi outlined several recommendations for the government to bolster London’s position as a prominent global business hub:
- Increase short-term worker visas across critical industries.
- Accelerate business visa processing times.
- Develop a comprehensive, long-term immigration and skills strategy.
Optimism in Business Sector
The LCCI’s survey revealed a notable surge in optimism among London businesses for the third quarter of 2024:
- 40% anticipate economic growth in the next year, an increase from 35% in Q2.
- 13% reported workforce expansions in Q3.
- 26% expect to increase their workforce in the upcoming quarter.
- 26% noted a rise in domestic sales, while 22% experienced increased domestic orders.
- 10% reported growth in export sales, with the same percentage seeing higher export orders.
- 29% indicated an improvement in cash flow, with 18% investing more in equipment.
Fatehi remarked on the encouraging optimism but stressed the need for government stability to foster long-term growth.
Upcoming Budget Challenges
Now that there is a Budget to be delivered on 30th October, Rachel Reeves, Chancellor, has indicated that these will not be easy and there are more tax rises and cuts in spending in the future. At the same time, Sir Keir Starmer sought to calm the business community, stating that there will be no rush to restrict foreign worker visas. A strategy would be adopted to build up skill levels in the UK’s workforce without harming businesses.
The most recent data released by the UK government stats is that the country recorded an unprecedented population high since the 1970s, thanks to net migration. Looking at the macro figures, the ONS stated that there was a 1% population increase for the year ending June 2023.
