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Scottish businesses ‘would prefer UK-wide immigration system’

UK News | Published:

A post-Brexit minimum salary could make it difficult for firms to employ EU workers, policy advisers told a Westminster committee.

Businesses in Scotland have indicated a preference for a single UK-wide immigration system rather than adopting a devolved Scottish one, according to industry advisers.

The Scottish Affairs Committee at Westminster on Tuesday discussed the impact the UK Government’s immigration approach post-Brexit would have on companies.

There have been calls for immigration policy to be devolved to Scotland to meet business demands for EU workers.

Concerns have been raised that a proposal to introduce a £30,000-a-year minimum salary threshold on EU workers would make it more difficult for firms to attract and retain staff required for lower-income positions.

Gregor Scotland, CBI Scotland principal policy adviser, indicated the priority for businesses is on having a single system for the UK.

He said: “From my conversations with businesses in Scotland, both since the White Paper was published and beforehand, I would say that the focus of the businesses I’ve spoken to has very much been on the practicalities of this, not about the politics, not about the wider constitutional issues.

“They want a system that is as simple as possible, that is as easy to access as possible and that allows them to access the people and the skills that they need to grow the economy.”

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Mr Scotland said that if following a year-long consultation period the current proposals did not work for businesses then it would be important to carry out work to assess the advantages and disadvantages of a differentiated system.

He added discussions had taken place with Ben Macpherson, the Minister for Europe, Migration and International Development, with members agreeing proposals for a differentiated system had merit, although indicating it was not their preferred option.

“Their priority and their ideal outcome is still a single UK-wide system that genuinely works for all parts of the UK, because if you do have two systems it would inevitably be greater demand on HR individuals, there would be a burden of responsibility for enforcement,” Mr Scotland said.

“So there would be questions about how it would operate, which I think is one of the reasons our members still would like us to use this 12-month period to try to ensure that what the final proposals look like are ones that would genuinely work for Scotland and the whole of the UK”.

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Barry McCulloch, senior policy adviser for FSB Scotland, said there would be merit in piloting the extent to which differentiation could work in Scotland.

Mr McCulloch said: “I would proceed on the basis that a separate visa system controlled by the Scottish Government is not on the table, it’s not up for grabs and I think just from a practical perspective, our members are telling us to operate within what is possible and in that light, we are looking to work with the UK Government to make the system work for Scottish firms.”

A UK Government spokesman said: “The new immigration system, operating from 2021, is designed to help drive up wages and productivity across the UK economy, including in Scotland, and will support businesses, communities and our public services.

“One of its strengths is its flexibility through a skills-based immigration system, allowing us to attract the talented workers we need but also delivering on the referendum result following the end of free movement.

“Whilst immigration remains a matter for the whole of the UK, we will also be making every effort to understand the specific needs of Scotland, which is why we will be engaging with business, stakeholders and the public over the next 12 months.”

Scottish Labour MP Ged Killen, a member of the committee, said: “SNP MPs on the committee were aggressively trying to pressurise business representatives into accepting that a devolved system was needed.

“However, business representatives were having none of it, saying that the priority isn’t where the policy is made, but that it is straightforward and works for business.

“Both the Conservatives and the SNP are not treating this debate with the levity it deserves.

“The overwhelming takeaway from the committee session is that business wants MPs to come together to create a common-sense immigration system that works for the whole of the UK.”

Scottish Migration Minister Ben Macpherson said: “Scotland requires flexible migration policies to match our current and future needs.

“The UK Government talks about creating a future immigration system that works for all parts of the UK but we need them to actually make good on that sentiment and listen to the deep concerns that there are in Scotland about their immigration proposals.”

He added: “The UK Government’s damaging proposals underline the growing need for a tailored approach to immigration for Scotland that would create additional opportunities and solutions within the UK system for people to live, work and raise their families here.”

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