Given the rapidly growing labour shortage in key industries, Liz Truss launched a major review of the UK visa system. And business leaders welcomed this step.
The review could also support reducing the need for foreign workers to speak English in some areas to enable them to enter the country.
A waiver of customary requirements by companies demonstrates that there are no qualified local workers for the position. Including non-EU migrants on the Home Office list and lowering the fees simplifies entering Britain for them. Over time, the condition of a £35,800 salary for migrants to settle in the UK will be revoked after five years.
With this, Liz is also planning to remove limits on foreign workers employed in British seasonal agriculture.
The Visa scheme has enabled the issuance of 38,000 visas to agricultural workers. It was introduced to bridge the agricultural workforce gap. However, the sector has warned that this still isn’t sufficient to deal with severe labour shortages.
Several business groups have been demanding the shortage occupation list’s review so that labour gaps can be tackled. Moreover, the pandemic and Brexit have also negatively impacted certain industries. So, those groups welcomed this review.
According to the CBI employers’ organization, preventing skill and labour shortages is advantageous to everyone. It can simultaneously help control inflation and ensure that businesses have the employees they need to expand.
It is good news according to Craig Beaumont of the Federation of Small Businesses.
The Migration Advisory Committee has been asked to conduct a thorough assessment of the list of shortage occupations to include all job opportunities that are unfilled, regardless of skill level.
In this way, the number of openings in industries with a high need for new employees would be decreased.
One of the business personalities said the action came in as a genuine signal about the government’s commitment to promoting economic growth.
British Chambers of Commerce surveyed 5700 businesses this summer. More than 60% of companies mentioned the need for hiring more employees in the UK. But over three-quarters were facing trouble filling those positions. For instance, 83% of businesses in the construction industry reported having trouble hiring.
There won’t necessarily be a net rise in immigration as a result of the review, according to an official at Downing Street.
The official stated the need for actions to attract skills needed for the economy’s growth, including the rural economy. The actions will include the rising and falling of the workforce in various places.
Truss’ allies praised her for this step. They applauded her dedication to making the UK retain global leadership by luring and retaining talent.
During Brexit in 2016, the anti-immigration sentiment was a major factor in the voting decision to leave the EU. Her assessment of the immigration system is expected to encounter opposition from some of her cabinet’s Brexiters.
Many conservative MPs are already criticizing Truss for Friday’s “mini- Budget.” She introduced the largest tax cuts in around fifty years.
As markets reacted unfavourably to the £45 billion debt-financed package, the chancellor’s budget announcement caused the sterling to drop against the dollar.
Julian Smith, a former top whip of the Conservative Party referred to giving tax breaks to the highest wage earners at a time when low-wage people were experiencing “fear and uncertainty.” Many other Conservative MPs publicly criticized the Budget.
She refused to provide cabinet positions to the majority of MPs who backed Rishi Sunak, her competitor for the leadership. By doing this, Truss also infuriated many of her colleagues.
Labour leader, Sir Keir Starmer stated on Sunday that he would reinstate the 45p top Income tax rate if he were to become Prime Minister.
“After this decision, on an income of £1 million, £55,000 less tax will be levied. This amount is more than enough to employ a nurse,” he said. It’s highly divisive and will attract huge risks.
However, Starmer asserted that their government supports labour. And such a ministry would not undo Kwarteng’s 20p to 19p cut in the basic tax rate.
Sunday Telegraph reported that Truss might reduce income taxes once more in the New Year’s Budget. This will impact the lifetime and yearly allowances for pension pots. The report was deemed “speculative” by government officials.
However, Kwarteng talked to BBC on Sunday. He stated that he wants individuals to retain more money in the upcoming year through additional tax cuts.
After his Budget announcement on Friday, Kwarteng was questioned about the strong sell-off in financial markets. He responded, “As chancellor of the exchequer, I don’t comment on market movements.”
According to Treasury officials, they don’t know about any UK sovereign wealth fund. However, some are claiming that the UK government is planning for this with the proceeds of fracking.