Ideas for a regional visa system have been set out by the local authority for London’s financial district in an attempt to avoid staff shortages after the vote to leave the EU.
City of London Corporation published the proposals, drawn up by accountants PriceWaterhouseCoopers, after scrutinising the visa systems used in Australia and Canada. It outlines two ideas: one could be run by the local authorities which would listen to the business case for needing to recruit from abroad; the other would be run by UK Visas and Immigration (UKVI) which would judge the merits of cases put forward.
Regional visas, according to the report, would allow regional centres such as Manchester, Newcastle and Birmingham to become more competitive and lure more overseas talent. Individuals would be required to live in the area.
“A regional visa could present an opportunity for the UK to have a nuanced immigration system that successfully meets the requirements of UK business and economy post Brexit. Economies that are dependent on a single city hub are less resilient to global economic shocks. A regional visa system could facilitate and promote economic development outside of London,” the report said.
Immigration has been a key part of the Brexit debate. The home secretary, Amber Rudd, raised the idea of companies disclosing the proportion of foreigners they employ.
“By allowing the regions to control immigration this will recognise the fact that the needs of London and Yorkshire will differ dramatically. Whilst all regions will have to adhere to the same overall requirement criteria set by the Home Office they will be allowed to control the numbers of migrants and the skills they require for their region,” the report said.
It is not clear what visa regime will apply to EU workers after Brexit, but the report said that if the current visa system was applied around three-quarters of Britain’s EU workforce would not meet these requirements. This could have an impact on the City of London – where 32% of the workforce is international, with 12% hailing from Europe. It would also affect healthcare, agriculture and construction.
Australia and Canada are seen as the most relevant comparisons for a UK regional visa. The report said: “Both countries designed their systems to attract migrants to help combat problems of sparsely populated regions and declining populations. Whilst we acknowledge that a post-Brexit visa system will have different motivations, the mechanisms and lessons are relevant, as these relate to tying migration to particular area needs.”
Australia uses a regional sponsored migration scheme where a three-year visa is granted for workers sponsored by employers. Canada has a four-year programme where employers are able to hire from abroad when they have not been able to recruit at home.
The UK could adopt two types of visas – a 12-month visa for those recruited to fill a skills shortage or one for six years to fill a permanent role that could also lead to permanent residency after five years. Individuals entering the UK on the longer term visa would be permitted to purchase property in the area where they had been granted permission to work.
“This is not a London solution to a national problem, but actually something that can support growth outside of the capital across a wide variety of sectors,” said Mark Boleat, policy chairman at the City of London Corporation.
