Plan for UK visa clampdown threatens tech companies

Source: Financial Times, 20/12/2015

The UK government`s immigration advisers are pushing for a clampdown
on visas for skilled workers from outside the EU, in a move that would
be a blow to global technology companies that operate in Britain.


The Home Office is looking at ways to tighten the rules for "tier 2"
visas that apply to internal company transfers, and the Migration
Advisory Committee is expected to recommend focusing on big
international businesses that move staff to projects in different
countries.


IN UK Politics & Policy
Sir David Metcalf, chairman of the MAC, is due to present his
proposals to the Home Office this week and his report will be made
public towards the end of January. The committee would not comment on
his recommendations.


Among the options Sir David is understood to be considering, is a
skills levy on employers recruiting from outside the EU. While he may
hold back from proposals to raise the minimum salary to qualify for a
visa or to limit dependants` right to work, companies are worried
about any plans that will limit their ability to transfer
employees.


Four of the top five short and long-term intra-company transfers in
the year ending in March were in IT, telecoms or software development,
according to Home Office data.
By country, India is top, accounting for 31,093 sponsored skilled visa
applications in the year to September, followed by the US with 6,533.
Companies including Infosys, Wipro and Tata Consultancy Services from
India and Accenture and IBM from the US are likely to be hardest hit.
India`s National Association of Software and Services Companies said
it had engaged in the public consultation and had stressed the
importance of tier 2 visas.


"These skilled workers make a valuable contribution to the UK economy
by delivering specialist technical knowledge and skills to British
companies," the association said.


"This is not something that we would support," said Emanuel Adam, head
of policy at British American Business. "Restricting tier 2 in any way
will have a negative impact on companies and organisations assessing
business opportunities . . . in the UK."


Controlling immigration has become one of the defining issues of David
Cameron`s government and is a key factor in negotiations to reshape
Britain`s relationshipwith the rest of the EU.


But efforts to reduce the number of people coming from Europe — often
cited as a worry by voters — remain subject to the unpredictable
outcome of negotiations with the rest of the bloc.


That has left the government looking to reduce workers from outside
the EU in order to bring net migration down to the promised "tens of
thousands" from the most recent figure of 336,000.


"We have to be extremely cautious, as this will have a very
significant impact — we must not to cut off our nose to spite our
face," said Jurga McCluskey, head of immigration at consultancy
Deloitte.


The number of tier 2 visas — including extensions, visas for
dependants and new visas — increased by almost a third to 151,659
between 2009 and 2014, according to the Home Office. More than twice
as many visas are granted for intra-company transfers as for other
skilled workers with a job offer.


Matthew Percival, head of employment law at the Confederation of
British Industry, the country`s biggest employers` group, said: "The
net migration target remains a blunt instrument that is not fit for
purpose and should have been scrapped long ago."


The restrictions would face stiff opposition from George Osborne,
chancellor, and could sour relations with India. Last month, both
countries signed a joint statement agreeing "to facilitate the
temporary movement of skilled personnel" in the IT industry.


Keith Vaz, chairman of the home affairs committee of MPs, said last
week the cap was "counter-productive" because it did little to reduce
net migration but made it hard to find staff. Tony Haque, immigration
lawyer at Baker & McKenzie, said the curbs might simply result in more
workers being brought in from the EU.


Julia Onslow-Cole, the head of PwC`s global immigration practice, said
Sir David was likely to recommend differentiating between traditional
forms of intra-company transfers and those used mainly by the IT
sector.


She also expected the committee to favour a skills levy that raises
money for the exchequer, instead of increasing the salary threshold.


Sir David is looking to use this money to fund apprenticeships.
The Home Office had no immediate comment