UK Labour Government + Immigration policy = More Quangos. UK business should follow the math and plan for 2030

A month on from Labour winning the UK general election, we now have a hint of what we can expect to see in the fast-paced, politically charged arena of UK immigration law. 

Thankfully for immigration lawyers, the changes are modest with the addition of two new quangos (Border Security Command and Skills England). We do not expect any specific changes to UK immigration law until Autumn 2024 or Spring 2025, but businesses should take heed of the language used by the Government when reviewing recruitment processes and skills shortages and expect more friction when sponsoring skilled workers from outside the UK. 

A fair and properly managed immigration system

The Labour Manifesto was thin in detail on immigration, using just 278 words to outline their plans. By comparison, the latest Statement on Changes to Immigration Rules in March 2024 ran to 292 pages. The King’s Speech devoted even fewer words to immigration. The Home Secretary’s statement to Parliament on 30 July 2024 highlighted Labour’s agenda and the most relevant parts to business are:

1. Strengthening the Migration Advisory Committee. This is likely to mean their reports will carry more weight with recommendations more likely to be implemented. The Committee is to review the reliance of key sectors on international recruitment. It will focus on the IT and engineering sectors first, meaning these sectors should prioritise reviewing recruitment practices and engaging with the Committee where possible. 
2. The establishment of Skills England to work with the Migration Advisory Committee to help reduce reliance on overseas workers. This could lead to the Education Department having more of a say on immigration policy.
3. Immigration audits are likely to be more common. Between January and March 2024, 210 Skilled Worker licences were revoked and 309 suspended, the largest numbers in the past decade. Businesses found to be misusing the visa route can be prevented from hiring migrant workers. Directors can also be disqualified from being Directors (see the case of Secretary of State for Business and Trade, petitioner 2024 Scot (D) 18/5).
4. It is possible that the disliked resident labour market test will be re-introduced. This was abolished in the previous Parliament and replaced with a ‘genuine vacancy’ test, which has not been policed by the immigration authorities with as much rigour as the old test. 
5. Workforce and Training Plans to be introduced, with the initial targets to be the construction and healthcare sectors to reduce reliance on overseas workers. 
6. Labour has been silent on visa fees and surcharges. The Migration Advisory Committee has previously recommended new surcharges to dissuade employers from sponsoring skilled workers from abroad and it is feasible for the existing immigration skills charge to be increased from the current level of up to £1,000 per year of a Skilled Worker visa to further disincentivise sponsoring workers from abroad. 
7. E-visas are due to replace physical biometric residence permits (BRP) from 1 January 2025, but not everyone who has a BRP card has been invited to create a new e-visa account on the UKVI website. With just 4 months to go before this self-imposed deadline, there is a real risk of border friction and challenges evidencing a migrant’s right to work in the UK. 

What can businesses do now?

Businesses should be reviewing their recruitment plans and consider ways of upskilling their existing workforce to reduce reliance on skilled workers from abroad. The IT, engineering, construction and healthcare sectors are likely to see changes first, so these sectors should be actively looking for solutions to the skills gap in the UK. 

Businesses should also review their immigration compliance and right to work policies to reduce the risk that an immigration audit can find deficiencies in processes. A ‘mock audit’ is an effective way of identifying such deficiencies, whilst showing the immigration authorities that the business strives to maintain immigration compliance at all times. 

Businesses should encourage their migrant workers to switch their physical BRP cards to e-visas as soon as possible and no later than December 2024. 

Finally, businesses in sectors at risk of imminent changes (IT, engineering, construction and healthcare) may want to consider innovative partnerships with established UK and Irish educational institutions to create tailor-made career pathways where there is a current skills shortage so that by 2030 there may be a UK and Ireland grown cohort of skilled workers to reduce reliance on skilled workers from further afield. 

Immigration law and policy is subject to regular change. If you have any questions, please contact Paul McCarthy.