09 Feb 2011
Wealthy migrants in, skilled and highly skilled workers out. has the Government got its focus wrong?
The Government, in an attempt to bolster the UK's economy, is proposing to introduce changes aimed at increasing the number of wealthy migrants coming to the country. As part of this overall strategy, individuals applying under the investor and entrepreneur immigration categories have already been exempted from the Government's cap on non-European migrants coming to the UK. If the Government's newest proposals are approved:
wealthy migrants will only have to spend 6 months in the UK in order to qualify for an investor visa, as opposed to the current 9 month requirement;
investors who bring £10 million into the UK will qualify for permanent residency rights within 2 years. Individuals with £5 million will qualify for permanent residency in three years and those with £1million will qualify after 5 years. Currently, all individuals must have spent a continuous period of at least 5 years before being eligible to apply for permanent residency in the UK; and
visa restrictions for individuals applying under the entrepreneur category will be eased and businesses will be permitted to bring in an extra employee from overseas in return for additional investment of £50,000.
The Government's proposals are likely to see increased interest from wealthy families seeking to establish a base in the UK. It is hoped that this interest will translate into new investment in the country and boost the economy. Commentators, however, have already pointed out that individuals who are granted permanent residency would then be free to take their money out of the UK which, in some cases, may be after only two or three years. There are concerns therefore that the proposals will not have the long term effect on the economy that the Government is hoping for.
The proposed changes have been introduced against a backdrop of increased restrictions on skilled and highly skilled workers coming to the UK from non-European countries. These restrictions, which include caps on the number of workers allowed into the UK and the eventual abolition of certain immigration routes most notably the Tier 1 (General) category, have led some employers to question why they are being prevented from employing skilled workers who will benefit their businesses as well as contribute to the UK economy in general.