In her first major statement on Labour's approach to regular immigration, the UK's new Home Secretary, Yvette Cooper, set out a plate full of opportunities to influence immigration policy.
Businesses are advised not to focus on the new government's position regarding net migration and its support for the majority of restrictions implemented by the previous administration.
Instead, businesses are encouraged to focus on the new Home Secretary's opening acknowledgment of the historical importance of migration in contributing to the UK's economy, public services, cultural diversity and global competitiveness, along with the emphasis on policy necessary to deliver the new government's missions, which are centred around growth determined by review of evidence.
Statement's Key Takeaways
It is true that having acknowledged the important multi-layered role immigration has played in the development of the UK, the new Home Secretary swiftly highlighted the substantial increase in net migration under the watch of the previous government.
Critically, in her statement, though she indicated that the new government feels net migration "must come down," the Home Secretary did not specify the exact level of the reduction. This omission should not be assumed to be unwitting but intentionally reflecting the government's focus on quality and impact, and recognising that optimal immigration for any country depends on its strategic needs and resources.
Further, with a natural decline in net migration anticipated, the new government can frame reducing net migration as a policy objective while allowing time to assess the effectiveness of the immigration system without political pressure.
The Home Secretary also highlighted the need for a more 'controlled and managed' immigration system to address domestic labour market challenges and reduce over-reliance on international recruitment. This is a neutral statement and does not specify what the UK's immigration system must look like.
Distinctly, she set out her government's new approach: to align immigration policy with the broader labour market and skills strategies to encourage domestic skills development and ensure that migration supports rather than substitutes local workforce improvements. This was another neutral statement.
Additionally, the Home Secretary goes on to explain that her government's new approach involves a strengthened Migration Advisory Committee (MAC) that will assess sector-specific needs. It would do so whilst collaborating with new bodies like Skills England and the Industrial Strategy Council.
She said she is commissioning the MAC to look at the IT and engineering sectors as a "first step," likely because these sectors were consistently included on the (now defunct) Shortage Occupation List for prolonged periods and rely on significant levels of international recruitment. Of course, some other sectors and occupations have similar profiles and should expect to benefit from reviews in later steps.
The commitment to sector-based reviews indicates that the Home Secretary's statement, which said the new government "supported all restrictions introduced by the last government and would continue to implement them," should be viewed as having limited significance.
The Home Secretary also referred to measures to protect the integrity of the student visa system and a review of family immigration financial requirements were set out as part of the broader agenda to create a balanced and sustainable immigration policy.
Ultimately, the Home Secretary has highlighted the new government's approach to finalising immigration policy will be evidence-based, focused on practical outcomes rather than ideology, chiming with the first speech of the new Prime Minister.
All this underscores both significant opportunities for active business and sector engagement.
Businesses as Counsel
Businesses must not only recognise the invitations and opportunities to influence immigration policy reflected in the Home Secretary's statement but also see the need for and benefit of engaging with the new government.
Businesses are ideally positioned to provide valuable feedback on the current system. They have firsthand experience with its challenges and limitations, including the difficulties of adapting and training. They can offer credible insights into proposed changes based on their experiences and suggest improvements that address their needs while aligning with the UK's overall goals and the new government's objectives.
Businesses are encouraged to have data-driven analysis ready for a MAC call for evidence, focussed on where they experience shortages, number of unfilled roles, time to fill roles, how long it takes to upskill and attempts underway to train.
Ultimately, if economic growth is the new government's central mission, immigration will be crucial to deliver it – and to support related missions. Improving local skills is vital but will take time and cannot fully meet immediate and evolving demands.
Efforts to reduce dependency must still be supported by a system
that meets demand as needed. Equally crucial for growth is a steady
influx of international talent, which fosters innovation and new
ideas. The new government must recognise that immigration, in terms
of both demand and supply, plays an ongoing role in the development
of the UK's economy.
By addressing these issues, businesses can help shape a more
responsive and balanced immigration system under the new Labour
government.
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