A new system of London-only visas has been proposed as a solution to the economic disruption and social division surrounding immigration after Brexit.
The London Chamber of Commerce and Industry (LCCI) has called for regionally-based work visas that would allow London businesses to maintain their access to the European talent they desperately need even after Britain has left the EU.
And an Oxford University research centre has concluded that it would be feasible to devolve immigration rules from the national level, especially to the devolved administrations of Scotland, Wales and Northern Ireland. London has the next most extensive set of local powers and administrative abilities.
The immigration debate was at the heart of the Brexit referendum and demonstrated the huge differences in attitudes to immigration in various parts of the UK. The looming overhaul of the immigration system as Britain leaves the EU now risks exacerbating those regional tensions. London voters remain more open to immigration and the capital will continue to need skilled migrants while voters in northern England are more resistant to high levels of immigration.
The Migration Observatory, an Oxford University research centre with a reputation for rigour and impartiality, has released a report examining the potential of developing immigration rules at a regional rather than a national level.
Such a system would see visas allowing migrants to work in just one area of the UK, with a visa tied to a specific job to prevent the migrant leaving the region. That would allow for more flexible wages so that lower-earning regions would be able to accept workers on lower salaries.
The benefits of the scheme include giving local communities a bigger say on migration policy to reflect local attitudes rather than the Home Office’s sentiments on migration. The scheme would also enable areas that need more migrants to increase their intake without being hamstrung by national constraints. According to the report such a scheme could even see “whole visa types existing in one region but not in another”.
“This could involve post-study work visas in some areas but not others; or region-specific quotas for low-skilled workers coming from the EU after Brexit.” The research centre noted that Canada and Australia have already introduced regionally-based systems.
“London Needs Migrants”
Supporters of regional visas argue that “having different policies for different areas of the UK should bring economic benefits by allowing a better match between economic needs and policy design,” the Observatory said.
On the downside, the report found drawbacks to regionalisation. “A more complex immigration system would increase administrative burdens for its users, such as large employers who employ staff in more than one part of the UK.”
The report concluded that regional visas would be feasible for the UK despite the potential administrative costs, and the crucial decision would not be a matter of economics but the political judgement about which level of government should be setting immigration policy.
The stakes are especially high for London, with LCCI chief executive Colin Stanbridge saying “it has become increasingly clear since the (Brexit) referendum how much the London economy relies on immigrant workers”.
According to the Migration Observatory 964,000 jobs in the capital were held by EU-born workers in 2017. Some 12% of London’s population were EU nationals compared to the UK average of 4% The LCCI says that if EU nationals faced new immigration restrictions “London would lose 160,000 workers, face a £7bn negative impact on economic output and miss an estimated £2bn direct tax contributions by 2020”.
An LCCI survey of more than 500 London businesses found that 52% said that “a decrease in the level of immigration to London would have a negative impact on economic growth.”
Some 57% of London businesses said the capital “should prioritise growth, even if it means increasing immigration from EU states”.
by Thomas Chambers
The post Brexit: Visas Just for London? appeared first on Felix Magazine.
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