Rachel Reeves has pledged a comprehensive review of the UK’s immigration framework, including potential new visa routes for highly skilled workers in artificial intelligence and life sciences, as part of a wider drive to stimulate economic growth.
The Chancellor revealed that a formal report will be published later this year, declaring the government’s vision “for Britain to be open for business and open for talent.”
Speaking at a breakfast during the World Economic Forum in Davos, Reeves said: “We will again look at routes for people with higher skills, and visas especially in the areas of artificial intelligence and life sciences. Britain is open for business, we are open for talent, we have some of the best universities, And some of the best entrepreneurs in the world, but we also want to bring in global talent.
While Labor has long emphasized the need to reduce immigration overall, Reeves has clearly indicated his desire to reassure international businesses and investors that the UK remains an attractive destination for skilled professionals. Ministers intend to engage with businesses on how best to reform current visa routes, including enabling British diplomats abroad to promote the UK as an attractive place to live and work.
Asked whether she was comfortable with the wealth creation that Tony Blair’s government once declared, Reeves said emphatically: “Absolutely.” She and Jonathan Reynolds, the business secretary, spent the summit emphasizing the government’s “pro-growth” ethos and insisting that major infrastructure projects such as airport expansion must not be thwarted by entrenched domestic opposition.
Reeves was also pressed about the potential approval of Heathrow’s third runway. She avoided direct confirmation, but stressed that the response to major national projects “cannot always be no.” Its stance signals a willingness to support large-scale development projects to drive growth, reflecting concerns that delays in key infrastructure have hampered the economy.
The Chancellor stressed that Markus Pokerinic’s sudden departure as head of the Competition and Markets Authority was linked to ministers’ calls for regulators to support economic growth more proactively. Bukerinck will succeed Doug Gore, Amazon’s former UK boss, after officials raised concerns that the CMA’s approach was hindering growth opportunities in vital sectors, including technology and financial services.
“Growth is our number one mission,” Reeves explained. “We want our organizers to be part of this mission… (Bokerinck) has recognized that it is time for him to move on and make room for someone who shares the mission and the strategic direction this government is taking.”
Commenting on the proposed visa reform, Karindeep Kaur, legal director at immigration law firm Migrate UK, welcomed the prospect of clearer routes for businesses relying on specialist skills. However, she cautioned that many companies remain wary of complex sponsor licensing obligations and escalating visa-related costs.
“For this to work, companies will need reassurance that acquiring specialist talent will exceed the requirements placed on them as a sponsor license holder,” said Corr. “Since 31 December 2024, UK Visas and Immigration (UKVI) has announced that companies will face immediate revocation of their licenses if they are found to be ‘recovering’ some of the costs associated with sponsorship. …Increasing pressure for compliance may prevent companies from applying for a sponsor licence.
Kaur also highlighted impending increases in visa fees, including a proposal to raise the sponsorship certificate fee from £239 to £525. When combined with sponsor license fees, skills fees and additional health immigration fees – particularly for family members – the cost to employers and employees can easily escalate into tens of thousands of pounds.
She added: “Although it may be tempting to work and live in the UK, there is still a demand on the government to reduce immigration overall. This puts them in a precarious position about how lenient these approaches are.”
Despite these concerns, the Treasury aims to emphasize the UK’s strong position with world-class universities, thriving entrepreneurship and a “pro-growth” agenda, in the hope that the revamped visa strategy will help address post-pandemic challenges and boost the country’s position as a global innovator. center.
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