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New family visa rules could leave British citizens with a foreign partner facing greater restrictions on who they can live with than migrant workers, according to leading immigration researchers.

Under new rules announced by Home Secretary James Cleverly, the minimum income for British citizens who want to live with family members in the UK is up to £38,700, an increase of more than £20,000 from the previous figure of £18,000.

The change has been met with dismay and anger by many of those affected, who now face being unable to live with partners or children in the UK.

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The new threshold is above the average salary earned by 70% of UK workers and has been characterised as allowing only the richest Britons to choose who they can marry.

The Migration Observatory at Oxford University said it is not clear why the new earnings threshold was chosen, and concluded the rules will leave migrant workers employed in the NHS or other public service roles with more rights than British employees doing the same job.

It said: “Counterintuitively, the package taken together means that, in some circumstances, British workers would face more restrictive rules on family than migrant workers in the same job.”

“For example, health professionals in the NHS who come to the UK on skilled work visas would be able to bring their non-UK citizen partners with them.

“A new restriction on dependants applies to care and senior workers, but not to other health jobs.

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“However, the majority of British nurses working in the NHS earn less than £38,700 per year and so would not have the same rights.”

Their analysis also concludes the new policy will disproportionately affect women, a smaller proportion of whom earn the higher salary, and exclude almost all part-time workers.

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The group said: “Whereas around 60% of men earn less than the new income requirement, this rises to more than 75% for women.

“The earnings of almost all part-time employees fall below the threshold too, in effect limiting the right to live in the UK with migrant dependants to full-time workers.”

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Sky News has been contacted by dozens of people who face being unable to live with partners and spouses as a result of the policy change.

One Briton living in China who had been planning to return with his Chinese wife said “I feel like I have been exiled”.

A British woman with a Belgian partner, who has no immediate prospect of earning above the new threshold, said: “I feel like I’m being banished from my own country for having fallen in love with someone.”

The Home Office has been contacted for comment.

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Miniature classic car-maker Hedley Studios revs up rescue deal

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Miniature classic car-maker Hedley Studios revs up rescue deal

A company which makes miniaturised electric versions of classic cars has secured a rescue deal led by an American merchant banking group.

Sky News understands that the future of Hedley Studios – formerly known as The Little Car Company – has been salvaged through a pre-pack administration deal.

FRP Advisory is understood to have acted as administrator before selling the business to an entity controlled by Island Capital Group.

Hedley Studios was founded in 2018, when luxury car-maker Bugatti approached Ben Hedley to see if he could recreate a 1920s Type 35 racing car at half-scale to mark its 110th anniversary.

In a statement issued in response to an enquiry from Sky News, the company said it had built and delivered more than 500 vehicles to clients in more than 60 countries in the last 17 months.

Hedley Studios manufactures its cars at three-quarters the size of the original model, with the resulting vehicles typically costing £75,000 or more.

Pic: Hedley Studios
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Pic: Hedley Studios

“We’re thrilled to welcome Island Capital Group as a strategic partner in the next phase of Hedley Studios’ growth,” Mr Hedley said.

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“Its investment and belief in our vision mark a pivotal moment for the company as we accelerate our expansion and reach new global audiences.

Hedley Studios makes its cars in partnership with a range of luxury manufacturers, including Aston Martin, Bentley and Ferrari.

Andrew Farkas, founder, chairman and CEO of Island Capital, which initially backed Hedley Studios in 2023, said: “This latest investment is testament to the entrepreneurial spirit of Ben and his team in building a successful British luxury brand in a short period of time.

“Automotive enthusiasts globally are increasingly keen to honour these historic icons, bringing them to new audiences in a new, fully electric way.

“Our broader investment marks the beginning of a new chapter for Hedley Studios, reinforcing its position as a leader in the creation of luxury, driveable artworks, and Island Capital is excited to be part of that growth journey.”

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Whitehall on alert for collapse of Gupta’s steel empire

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Whitehall on alert for collapse of Gupta's steel empire

The metals tycoon Sanjeev Gupta is this weekend plotting a controversial deal to salvage his remaining UK steel operations and avert their collapse into compulsory liquidation – a move that would put close to 1,500 jobs at risk.

Sky News has learnt that Mr Gupta is in talks about a so-called connected pre-pack administration of Liberty Steel’s Speciality Steel UK (SSUK) arm, which would involve the assets being sold – potentially to parties linked to him – after shedding hundreds of millions of pounds of tax and other liabilities to creditors.

Begbies Traynor, the accountancy firm, is understood to be working on efforts to progress the pre-pack deal.

This weekend, Whitehall sources said that government officials had stepped up planning for the collapse of SSUK if an already-deferred winding-up petition scheduled to be heard next Wednesday is approved.

If that were to happen, SSUK would be likely to enter compulsory liquidation within days, with a special manager appointed by the Official Receiver to run the operations.

Mr Gupta’s UK business operates steel plants at Sheffield and Rotherham in South Yorkshire, with a combined workforce of more than 1,400 people.

SSUK is Britain’s third-largest steel producer.

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Sources close to Mr Gupta could yet secure a further adjournment of the winding-up petition to buy him additional breathing space from creditors.

In May, a hearing was adjourned after lawyers acting for SSUK said talks had been taking place with “a third-party purchaser”.

Their identity has not been publicly disclosed, and it has been unclear in recent weeks if any such discussions were continuing.

A connected pre-pack risks stiff opposition from Liberty Steel’s creditors, which include HM Revenue and Customs.

UBS, the investment bank which rescued Credit Suisse, a major backer of the collapsed finance firm Greensill Capital – which itself had a multibillion dollar exposure to Liberty Steel’s parent, GFG Alliance – is also a creditor of the company.

Grant Thornton, the accountancy firm handling Greensill’s administration, is also watching the legal proceedings with interest.

The Serious Fraud Office launched a probe into GFG – which stands for Gupta Family Group – in 2022.

On Saturday, a Liberty Steel spokesperson said: “Discussions are ongoing to finalise options for SSUK.

“We remain committed to identifying a solution that preserves electric arc furnace steelmaking in the UK-a critical national capability supporting strategic supply chains.

“We continue to work towards an outcome that best serves the interests of creditors, employees, and the broader community.”

Last month, The Guardian reported that Jonathan Reynolds, the business secretary, was monitoring events at Liberty Steel’s SSUK arm, and had not ruled out stepping in to provide support to the company.

Such a move is still thought to be an option, although it is not said to be imminent.

The Department for Business and Trade has been contacted for comment.

It has previously said: “We continue to closely monitor developments around Liberty Steel, including any public hearings, which are a matter for the company.

“It is for Liberty to manage commercial decisions on the future of its companies, and we hope it succeeds with its plans to continue on a sustainable basis.”

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Wednesday’s winding-up petition was filed by Harsco Metals Group, a supplier of materials and labour to SSUK, and is said to be supported by other trade creditors.

Mr Reynolds has already orchestrated the rescue of British Steel, the Scunthorpe-based steelmaker, after failing to reach a government aid deal with Jingye Group, the company’s Chinese owner.

Jingye had been preparing to permanently close Scunthorpe’s remaining blast furnaces, prompting Mr Reynolds to step in and seize control of the company in April.

The government has yet to make a decision to formally nationalise British Steel, although that is anticipated in the autumn.

Tata Steel, the owner of Britain’s biggest steelworks at Port Talbot, has agreed a £500m government grant to build an electric arc furnace capable of manufacturing greener steel.

Other parts of Mr Gupta’s empire have been showing signs of financial stress for years.

The Financial Times reported in May that he was preparing to call in administrators to oversee the insolvency of Liberty Commodities.

Separately, HMRC filed a winding-up petition against Liberty Pipes, another subsidiary, earlier this month, The Guardian reported.

Mr Gupta is said to have explored whether he could persuade the government to step in and support SSUK using the legislation enacted to take control of British Steel’s operations.

Whitehall insiders told Sky News in May that Mr Gupta’s overtures had been rebuffed.

He had previously sought government aid during the pandemic but that plea was also rejected by ministers.

SSUK, which also operates from a site in Bolton, Lancashire, makes highly engineered steel products for use in sectors such as aerospace, automotive and oil and gas.

The company said earlier this year that it had invested nearly £200m in the last five years into the UK steel industry, but had faced “significant challenges due to soaring energy costs and an over-reliance on cheap imports, negatively impacting the performance of all UK steel companies”.

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Trump’s son-in-law Kushner takes stake in UK lender OakNorth

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Trump's son-in-law Kushner takes stake in UK lender OakNorth

The private equity firm set up by Jared Kushner, President Donald Trump’s son-in-law, is to take a stake in OakNorth, the British-based lender which has set its sights on a rapid expansion in the US.

Sky News has learnt that Affinity Partners, which has amassed billions of dollars in assets under management, has signed a deal to acquire an 8% stake in OakNorth.

The deal is expected to be concluded in the coming weeks, industry sources said on Friday.

Mr Kushner established Affinity Partners in 2021 after leaving his role as an adviser to President Trump during his first term in the White House.

He is married to Ivanka, the president’s daughter.

Affinity manages money for a range of investors including the sovereign wealth funds of Qatar and Saudi Arabia.

Insiders said that Affinity Partners was buying the OakNorth stake from an unidentified existing investor in the digital bank.

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The valuation at which the transaction was taking place was unclear, although OakNorth was valued at $2.8bn in its most recent funding round in 2019.

OakNorth, which was founded by Rishi Khosla, is targeting substantial loan growth in the US in the coming years.

Earlier this year, it agreed to buy Community Unity Bank (CUB), which is based in Birmingham, Michigan, in an all-share deal.

The transaction is awaiting regulatory approval.

OakNorth began lending in the US in 2023 and has since made roughly $1.3bn of loans.

The bank is chaired by the former City watchdog chair Lord Turner, and is among a group of digital-only British banks which are expected to explore stock market listings in the next few years.

Monzo, Revolut and Starling Bank are all likely to float by the end of 2028, although London is far from certain to be the destination for all of them.

Similarly, OakNorth’s ambition to grow its US presence means it is likely to be advised by bankers that New York is a more logical listing venue for the business.

Launched in 2015, the bank is among a group of lenders founded after the 2008 financial crisis.

Its UK clients include F1 Arcade and Ultimate Performance, both of which have themselves expanded into the US market.

Its existing backers include the giant Japanese investor SoftBank, GIC, the Singaporean state fund, and Toscafund, the London-based asset management firm.

Since its launch, OakNorth has lent around £12.5bn and boasts an industry-leading loan default ratio.

Last year, it paid out just over £30m to shareholders in its maiden dividend payment.

OakNorth has been growing rapidly, saying this year that it had recorded pre-tax profits of £214.8m in 2024, up from £187.3m the previous year.

It made more than £2.1bn of new loans last year.

On Friday, a spokesperson for OakNorth declined to comment.

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