To alleviate a labor shortfall in the building industry and draw more foreign builders to the UK, Prime Minister Rishi Sunak’s administration will relax immigration regulations.
On Wednesday, March 15, the Treasury officially announced the change in budget documents, as the Office for Budget Responsibility predicted that net migrant flows will stabilize at 245,000 per year by 2027–28, up from the 205,000 expected in its November prediction.
The UK’s “shortage occupation list” will now include construction workers after ministers agreed to the recommendations of the Migration Advisory Committee. The committee advised the government on immigration. Other sectors may be added to the list due to a larger review expected to be finished later this year.
That might be problematic among Brexit supporters and Conservative Party supporters, many of whom voted for the UK’s exit from the EU because the “Leave” campaign promises to “take back control” of Britain’s borders and minimize immigration in 2016.
Before the anticipated general election next year, Sunak is balancing his efforts to fill employment shortfalls in the UK with keeping his Tory grassroots satisfied.
To relieve the immediate pressure on the labour supply, the government agreed to add construction workers to the list of short-supplied occupations. Carpenters, roofers, plasterers, and bricklayers are included in this category.
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With a persistent labour shortage, Wednesday’s ruling is a huge boon for UK homebuilders. Employers can hire foreign workers from the list at a lower wage threshold than the typical “skilled worker” level and with lower visa costs.
The MAC stated that, despite requests from the hospitality industry to have its employees added to the list, it did not currently suggest adding any jobs in that field. Healthcare professionals, civil engineers, veterinarians, and architects are among the professions that are currently in short supply.
Chancellor of the Exchequer Jeremy Hunt detailed several initiatives in his budget statement that encourage individuals, especially those over 50, to find employment. However, the budget materials didn’t contain information about the relaxation of immigration laws in important industries.
In an interview with the BBC news channel on Wednesday, Hunt stated, “What we learned in the Brexit referendum was the country doesn’t want us to fill vacancies with unlimited low-skilled migration,” he said.
Hunt had previously emphasised his desire for the UK to have a high-skill economy and utilise the potential of the more than seven million unemployed British adults. In Parliament, he stated, “There are potentially seven candidates for every open position.”
According to James Kirkup, director of the nonpartisan research tank Social Market Foundation, the entire budget package depends on OBR growth estimates, which are based on the premise that there will be 245,000 net immigrants entering the UK annually.
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That’s merely the most recent instance of government evidence that immigration can boost the UK’s economy and finances by providing firms with access to higher-skilled people. The Conservative Party pledged to alleviate net migration to around 100,000 per year under the leadership of past leaders David Cameron and Theresa May but continually fell short of the mark.
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