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Baroness Valentine writes for ePolitix.com following her debate on the economic benefits of immigration.
The government's new cap on immigration poses real issues for business. The UK, and London in particular, attracts businesses from around the world - many of the world's largest companies have invested substantial bases here. These are global organisations which compete with the best worldwide. A temporary cap, put in place in July, has proven problematic – restricting the number of experts companies can bring in to the UK to work. The government must ensure the permanent cap, due to be implemented in April next year, doesn't deter the best businesses from locating here.
The coalition government is right to be concerned about immigration – politicians reflect the views of the voters, and immigration undoubtedly was an election-time doorstep issue. As recession has hit, people are understandably concerned that immigrants may be taking their jobs or creating an unwelcome burden on public services.
But, the other side of the argument is equally politically and economically obvious: the government is reliant on economic growth as a pathway out of recession. As the public sector shrinks the private sector is expected to take up the slack. But private sector growth is partly reliant on the attraction of world class talent to work in the UK. Businesses must be able to recruit the best people and move both people and teams from 'a' to 'b' as required – otherwise eventually they will base themselves elsewhere.
Beyond the political and economic arguments there is a question of what kind of Britain we want, and of what we value about the country in which we live. We should value the academics who make our universities among the best in the world; the students whom we educate and send back to home countries with vital ties and connections to the UK; and the 13 scientists working at the Medical Research Council's laboratory of molecular biology who have received Nobel prizes – only five of whom are British. All have made significant contributions to our economy, our culture and our global standing.
Some of our biggest achievers - the likes of Anish Kapoor at the Royal Academy of Art; Iraqi-born architect Zaha Hadid, who designed our Olympics Aquatics Centre; James D Watson, who came here from Chicago, and discovered the structure of DNA at Cambridge University - all fall into the group being targeted by the cap – the highly skilled and skilled non-EU immigrants. This is the group most likely to make UK residents better off, and one which we drive away at our peril.
55,000 migrants fell into this group last year, making up less than 10 per cent of the 567,000 total immigrants which came into the UK. These individuals contribute directly to the Exchequer through tax and national insurance, indirectly through their employers or the businesses they set up, and through the extra UK jobs they create.
Whilst the government is unlikely to achieve either its political or economic objectives by implementing a cap on highly skilled and skilled non-EU migrants, I understand the difficult position they are in. What we need to achieve is to grow the economy whilst tackling voters' migration worries. The Home Office needs to work with business to find a way to do so which still enables the best businesses to locate here in the UK.
Article Comments
I agree with Duncan, I think personal circumstances and what you can give back to the country are a big factor. Look at the doctors that are foreign, but they still come to Britain to use their profession. To me, that says they prefer our country (albeit economically) over their own.
I think the fake marriage scam and other schemes to get people living in our country is the reason why many people feel this way, but they need to take a step back and look at all of the professions we have that come from a foreign background.
Natalie
31st Mar 2011 at 11:48 am
London along with Britain is the continent to the Worldwide Business and a Think Tank Engine which has never lost its cause. We can sustain the uncountable.
The Governments Cap-on Immigration Policy is not wrong, having said this we do still lose a great deal of International Contacts for Realty, Commodity Trading, Garments, Automobile, Financial Consultants Investment Capitals injecting into our economy. We still remain the Worlds Best of all sectors nothing to be afraid of.
Let our Partners regardless of Race and Equality as long they provide assurance such as financial guarantee, visa fees (Multiple Entry/Exit), what is the problem? If our government restricts immigration from entering Britain the question of the matter is it the Individual or Business Group? To ENTER BRITAIN. We need foreign investors, not entering Britain to gain 'Income Benefit' NHS what is the WORRY and Fuss about?
Lets try to Rebuild Britain Economy along with the World. Britain is the World Leader in all Sectors, we should not let tiny issues bother us.
Tuan N. Tran
2nd Nov 2010 at 11:56 pm
Immigration needs to be better managed but there should always be room for small numbers of exceptional individuals. We can specify who they are. The coalition's cap is a crude political gesture, intended to win a few votes from the unthinking. That footballers are exempt but brilliant scientists and engineers aren't says a lot about our X-Factor age.
Duncan
22nd Oct 2010 at 10:57 am
Yes, we've heard it all before. It's BORING! Train our own people. stop the braindrain by stopping immigration. We don't need anymore people in the UK.
Think about the climate! All those extra people, our island just can't sustain them all.
Sally
21st Oct 2010 at 12:51 pm
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