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A new five-point plan to reduce immigration has been announced by the government, which includes banning care workers from bringing over their families and increasing the minimum salary for a skilled worker visa.

Home Secretary James Cleverly has come under pressure since taking office three weeks ago to show he is taking a hardline on immigration.

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Conservatives are angry about the latest thwarting of the Rwanda deportation scheme in the courts and net migration hitting 745,000 last year.

Today’s five-point plan – which is “more robust” than any previous government’s stance on migration, according to Mr Cleverly – includes measures on health and care visas, skilled worker visas, family visas, the shortage occupation list and student visas.

The measures are:

Health and care visas: Overseas care workers will not be able to bring family dependants, to end the “abuse of the health and care visa”. Care firms that want to sponsor people for visa applications will need to be regulated by the Care Quality Commission;

Skilled worker visa minimum salary change: The threshold for an application will rise to £38,700 – although health and care workers will still be able to earn less before applying for the route;

Shortage occupation list: The government wants to “scrap cut-price shortage labour from overseas” by reforming the way people working in short-staffed sectors can apply to come to the UK. This will include axing the 20% discount applied to the minimum salary for people looking for a visa for shortage occupations. The types of jobs on the list will also be reviewed and reduced;

Family visas: The minimum threshold for a family visa will also be raised to £38,700 to “ensure people only bring dependants whom they can support financially”. Currently, it stands at the 2012 rate of £18,600;

Student visas: Following the tightening of who can bring in family members on student visas earlier this year, the government will ask the Migration Advisory Committee to review the graduate route “to prevent abuse and protect the integrity and quality of UK higher education”.

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Home secretary knows he needs to sound tough on migration

This is an enormously important statement for the new home secretary.

Barely three weeks into the job, he has seen his polling among Conservative members plummet as he faces pressure over legal and illegal migration.

Today he addressed the former.

A rise in the skilled worker salary threshold, a ban on health and care workers bringing dependants to the UK and a scrapping of the shortage occupation list are among the measures announced to curb net migration.

The clamp down is seen as a win for the immigration minister Robert Jenrick, who is understood to have been pushing for a more hardline approach.

Discomfort in the party has been palpable after the net migration figure for 2022 was revised up to 745,000 last month – the 2019 Conservative manifesto pledged to bring down net migration; Boris Johnson talked about cutting the number to 250,000.

Will today’s statement make a difference?

The home secretary says the package, and existing plans to reduce student dependents, will mean more than 300,000 people who came to the UK last year would now not be able to.

But there are still questions – like how different the Immigration salary discount list will actually be from the scrapped shortage occupation list?

It seems likely workers from abroad will still be able to undercut British workers in some sectors, which won’t please right wing MPs.

On the other side, there are of course concerns too over a workforce shortage and a need to fill jobs, not least in healthcare.

Today we saw a significant statement on legal migration, a new treaty with Rwanda could come as soon as tomorrow.

The home secretary knows he needs to sound tough to appeal to his party. This could well be his most significant week yet.

Mr Cleverly claimed these measures – as well as the previously announced measures on students – would mean that 300,000 people who entered the UK last year would not have been able to.

He also re-announced plans to raise the increase of the immigration health surcharge from £624 to £1,035.

He told MPs: “When our country voted to leave the European Union, we voted to take back control of our
borders.

“Thanks to this Conservative government, we now have a points-based immigration system
through which we control who comes to the UK.

“We prioritise the skills and talent we need to grow our economy and support our NHS – and
we have a competitive visa system for globally-mobile talent.”

He added: “Immigration policy must be fair, consistent, legal, and sustainable.”

Asked by Tory MP Damian Green how many care workers are expected to be dissuaded by the removal of family dependents from their visa, Mr Cleverly said it was not estimated that fewer people would be working in the UK health and care sector – hoping domestic supply can fill any gaps.

The home secretary told MPs the plan aims to stop “approximately 120,000 dependants” coming in on health and care visas.

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Yvette Cooper, Labour’s shadow home secretary, said the statement was an admission of “years of total failure” by the government – claiming that Rishi Sunak is “crashing around all over the place” and “reversing policies he introduced”.

She pointed out that Labour had called for the scrapping of the 20% discount to shortage occupation lists previously.

Sky News understands that Labour is not planning to object to any of the measures announced today, if they require a vote in parliament.

UKHospitality, a trade body for the hospitality sector, said the changes would have stopped 95% of the 8,500 visas granted for chefs and managers last year – which would “worsen the shortages hospitality businesses are facing”.

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Trump trade war escalation sparks global market sell-off

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Trump trade war escalation sparks global market sell-off

Donald Trump’s trade war escalation has sparked a global sell-off, with US stock markets seeing the biggest declines in a hit to values estimated above $2trn.

Tech and retail shares were among those worst hit when Wall Street opened for business, following on from a flight from risk across both Asia and Europe earlier in the day.

Analysis by the investment platform AJ Bell put the value of the peak losses among major indices at $2.2trn (£1.7trn).

The tech-focused Nasdaq Composite was down 5.8%, the S&P 500 by 4.3% and the Dow Jones Industrial Average by just under 4% at the height of the declines. It left all three on course for their worst one-day losses since at least September 2022 though the sell-off later eased back slightly.

Trump latest: UK considers tariff retaliation

Analysts said the focus in the US was largely on the impact that the expanded tariff regime will have on the domestic economy but also effects on global sales given widespread anger abroad among the more than 180 nations and territories hit by reciprocal tariffs on Mr Trump‘s self-styled “liberation day”.

They are set to take effect next week, with tariffs on all car, steel and aluminium imports already in effect.

Price rises are a certainty in the world’s largest economy as the president’s additional tariffs kick in, with those charges expected to be passed on down supply chains to the end user.

The White House believes its tariffs regime will force employers to build factories and hire workers in the US to escape the charges.

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The latest numbers on tariffs

Economists warn the additional costs will add upward pressure to US inflation and potentially choke demand and hiring, ricking a slide towards recession.

Apple was among the biggest losers in cash terms in Thursday’s trading as its shares fell by almost 9%, leaving it on track for its worst daily performance since the start of the COVID pandemic.

Concerns among shareholders were said to include the prospects for US price hikes when its products are shipped to the US from Asia.

Other losers included Tesla, down by almost 6% and Nvidia down by more than 6%.

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PM: It’s ‘a new era’ for trade and economy

Many retail stocks including those for Target and Footlocker lost more than 10% of their respective market values.

The European Union is expected to retaliate in a bid to put pressure on the US to back down.

The prospect of a tit-for-tat trade war saw the CAC 40 in France and German DAX fall by more than 3.4% and 3% respectively.

The FTSE 100, which is internationally focused, was 1.6% lower by the close – a three-month low.

Financial stocks were worst hit with Asia-focused Standard Chartered bank enduring the worst fall in percentage terms of 13%, followed closely by its larger rival HSBC.

Among the stocks seeing big declines were those for big energy as oil Brent crude costs fell back by 6% to $70 due to expectations a trade war will hurt demand.

The more domestically relevant FTSE 250 was 2.2% lower.

A weakening dollar saw the pound briefly hit a six-month high against the US currency at $1.32.

There was a rush for safe haven gold earlier in the day as a new record high was struck though it was later trading down.

Sean Sun, portfolio manager at Thornburg Investment Management, said of the state of play: “Markets may actually be underreacting, especially if these rates turn out to be final, given the potential knock-on effects to global consumption and trade.”

He warned there was a big risk of escalation ahead through countermeasures against the US.

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Sandra Ebner, senior economist at Union Investment, said: “We assume that the tariffs will not remain in place in the
announced range, but will instead be a starting point for further negotiations.

“Trump has set a maximum demand from which the level of tariffs should decrease”.

She added: “Since the measures would not affect all regions and sectors equally, there will be winners and losers as in 2018 – although the losers are more likely to be in the EU than in North America.

“To protect companies in Europe from the effects of tariffs, the EU should not respond with high counter-tariffs. In any case, their impact in the US is not likely to be significant. It would be more efficient to provide targeted support to EU companies in the form of investment and stimulus.”

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British businesses issue warning over ‘deeply troubling’ Trump tariffs

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British businesses issue warning over 'deeply troubling' Trump tariffs

British companies and business groups have expressed alarm over President Donald Trump’s 10% tariff on UK goods entering the US – but cautioned against retaliatory measures.

It comes as Business Secretary Jonathan Reynolds launched a consultation with firms on taxes the UK could implement in response to the new levies.

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A 400-page list of 8,000 US goods that could be targeted by UK tariffs has been published, including items like whiskey and jeans.

On so-called “Liberation Day”, Mr Trump announced UK goods entering the US will be subject to a 10% tax while cars will be slapped with a 25% levy.

The government’s handling of tariff negotiations with the US to date has been praised by representative and industry bodies as being “cool” and “calm” – and they urged ministers to continue that approach by not retaliating.

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The latest numbers on tariffs

Business lobby group the CBI (Confederation of British Industry) said: “Retaliation will only add to supply chain disruption, slow down investment, and stoke volatility in prices”.

Industry body the British Retail Consortium (BRC) also cautioned: “Retaliatory tariffs should only be a last resort”.

‘Deeply troubling’

While a major category of exports, in the form of services – like finance and information technology (IT) – has been exempted from the tariffs, the impact on UK business is expected to be significant.

Mr Trump’s announcement was described as “deeply troubling for businesses” by the CBI’s chief executive Rain Newton-Smith.

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The Federation of Small Businesses (FSB) also said the tariffs were “a major blow” to small and medium companies (SMEs), as 59% of small UK exporters sell to the US. It called for emergency government aid to help those affected.

“Tariffs will cause untold damage to small businesses trying to trade their way into profit while the domestic economy remains flat,” the FSB’s policy chair Tina McKenzie said. “The fallout will stifle growth” and “hurt opportunities”, she added.

Companies will need to adapt and overcome, the British Export Association said, but added: “Unfortunately adaptation will come at a cost that not all businesses will be able to bear.”

Watch dealer and component seller Darren Townend told Sky News the 10% hit would be “painful” as “people will buy less”.

“I am a fan of Trump, but this is nuts,” he said. “I expect some bad months ahead.”

Industry body Make UK said the 25% tariffs on cars, steel and aluminium would in particular be devastating for UK manufacturing.

Cars hard hit

Carmakers are among the biggest losers from the world trade order reshuffle.

Auto industry body the Society of Motor Manufacturers and Traders (SMMT) said the taxes were “deeply disappointing and potentially damaging measure”.

“These tariff costs cannot be absorbed by manufacturers”, SMMT chief executive Mike Hawes said. “UK producers may have to review output in the face of constrained demand”.

The new taxes on cars took effect on Thursday morning, while the measures impacting car parts are due to come in on 3 May.

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Trump trade war: The blunt calculation that should have spared UK from reciprocal tariffs

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Trump trade war: The blunt calculation that should have spared UK from reciprocal tariffs

Economists immediately started scratching their heads when Donald Trump raised his tariffs placard in the Rose Garden on Wednesday. 

On that list he detailed the rate the US believes it is being charged by each country, along with its response: A reciprocal tariff at half that rate.

So, take China for example. Donald Trump said his team had run the numbers and the world’s second-largest economy was implementing an effective tariff of 67% on US imports. The US is responding with 34%.

Trump latest: UK considers tariff retaliation

How did he come up with that 67%? This is where things get a bit murky. The US claims it studied its trading relationship with individual countries, examining non-tariff barriers as well as tariff barriers. That includes, for example, regulations that make it difficult for US exporters.

However, the actual methodology appears to be far cruder. Instead of responding to individual countries’ trade barriers, Trump is attacking those enjoying large trade surpluses with the US.

A formula released by the US trade representative laid this bare. It took the US’s trade deficit in goods with each country and divided that by imports from that country. That figure was then divided by two.

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So, in the case of China, which has a trade surplus of $295bn on total US exports of $438bn, that gives a ratio of 68%. The US divided that by two, giving a reciprocal tariff of 34%.

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PM will ‘fight’ for deal with US

This is a blunt measure which targets big importers to the US, irrespective of the trade barriers they have erected. This is all part of Donald Trump’s efforts to shrink the country’s deficit – although it’s US consumers who will end up paying the price.

But what about the small number of countries where the US has a trade surplus? Shouldn’t they actually be benefiting from all of this?

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That includes the UK, with whom the US has a surplus (by its own calculations) of $12bn. By its own reciprocal tariff formula, the UK should be benefitting from a “negative tariff” of 9%.

Instead, it has been hit by a 10% baseline tariff. Number 10 may be breathing a sigh of relief – the US could, after all, have gone after us for our 20% VAT rate on imports, which it takes issue with – but, by Trump’s own measure, we haven’t got off as lightly as we should have.

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