Midlands businesses in warning over cutting immigration

Home Secretary Sajid Vavid says there will be no "specific target" for reducing the numbers.

He is publishing a long-awaited white paper setting out the Government's plans for a post-Brexit immigration system, ending freedom of movement.

Under the blueprint, there will be a new visa route for skilled workers and no cap on high-skilled professions such as doctors and engineers.

Sophie Boothroyd, financial director at Telford-based manufacturer Corbetts the Galvanziers, said: "We currently employ in excess of 130 people and a significant number of those are migrants workers from Eastern Europe, some of which have been based in the UK for a long time. There hasn't been any murmurings yet of mass movement back to their native homeland, but it is certainly something we are keeping an eye on and taking measures to protect our skills.

"One example, is the way we are building relationships with local employment agencies, another is looking at wider catchment areas and how we can transport people in from Wolverhampton and the surrounding areas."

Jimmy Donaghey, Professor of international human resource management at Warwick Business School, said: "A skills-based immigration system for EU workers goes against the entire thrust of UK labour market policy for the last 45 years. Even since the referendum the UK economy has continued to rely on migrant labour.

"Tougher restrictions on entry to the UK could create a huge shortage of unskilled and semi-skilled workers, who do not earn the required income levels. It is hard to see how radically scaling back immigration would not lead to severe labour shortages, particularly in the retail, restaurant and hotel sectors."

'Devastate'

The National Federation of Builders' chief executive Richard Beresford warned the immigration white paper’s proposals would impose an annual salary threshold of £30,000 for immigrants in low-skilled trades, among which it includes construction.

The white paper shows the Government isn’t listening to the business community as it sets out a post-Brexit immigration system that would devastate the construction industry, according to the Federation of Master Builders chief executive Brian Berry.

"The Government seems hell-bent on ignoring the business community when it comes to its immigration policy, as demonstrated by this disastrous white paper. Despite more than two years of constructive engagement, what has been proposed by ministers takes on none of our feedback. If the Government wants to jeopardise the UK economy for the sake of meeting an arbitrary immigration target, it’s going the right way about it," he said.

Mr Javid has confirmed the Government intended to set a minimum salary requirement for higher-skilled workers applying for five-year visas.

However, after the independent Migration Advisory Committee recommended a £30,000 threshold, he said they would be consulting further on what the level should be.

Mr Javid said while the UK would remain an "open, welcoming country" to migrants, the proposals would deliver on one of the "key messages" from the 2016 EU referendum vote.

"We are delivering on the clear instruction to get control over our borders and will bring in a new system that works in the interest of the British people," he said.

"It will be a single, skills-based immigration system built around the talent and expertise people can bring, rather than where they come from - maximising the benefits of immigration and demonstrating the UK is open for business."

The new immigration and borders system will be implemented in a "phased" approach from 2021, following the post-exit transition period.

On Thursday, an Immigration and Social Security Coordination (EU Withdrawal) Bill will be presented in the House of Commons.