London Chamber of Commerce Warns Immigration Charges Will Widen Skills Gap

This week the country has received a warning from the London Chamber of Commerce as they announce that hundreds of UK businesses will struggle to meet the cost demands of the new charges that have been introduced to immigration. They believe that due to the charge, it will cause a clear widen and gap in employment skills for business.

ComRes – who conducted the new survey – released results that state that less than 25% of business executives in London think that their firm can actually come up with the £1,000 annual charge per non-EU employee, which comes into effect as of April 2017.

Another plan has also been drafted that aims to cut costs to pay the levy and employ workers on Tier 2 Visas, with a total of 37% saying that they be more encouraged to hire or train British workers as an alternative. However, in the case that they’re unable to so, 45% of the questioned firms think that it will create a clear gap in skill levels.

The companies that are currently sponsoring skilled workers from outside of EEA will now have to pay £1,000 per each employee under the Immigration Act of 2016. That fee will be reduced by a sum of £364 for small or non-profit organisations.

The Chief Executive of the London Chamber of Commerce, on news of the results, said: ‘While we obviously recognise the aim behind this act, we are concerned that the charge will hit many of those for whom it was not actually intended… Our findings suggest that businesses do not always have a choice when hiring and are looking for those who have the right skills regardless of whether they are from the EEA or not… These charges will have a significant effect on businesses and may force some to cease trading either because they can no longer afford to or they can no longer find the skills.

As always, if you would like some more clarification on the up and coming changes or charges, please don’t hesitate to get in touch with one of our immigration solicitors in London.

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