Britain sees surge in migration despite Brexit – as skilled workers from Asia and Africa plug staff shortages
A growing number of skilled workers from Africa and Asia are moving to Britain to plug crippling staff shortages, according to new figures that reveal the changing picture of migration.
Businesses are making use of the new post-Brexit migration system to bring in IT professionals, nurses and accountants.
Since January 2021, the new system has made it easier for workers outside of Europe to enter the UK, even though the fees for businesses are high.
Nurses and care workers dominate the skilled visa scheme. File pic
While the number of European migrants has fallen in recent years, this has been more than offset by a big rise in migrants from other parts of the world.
Contrary to some initial expectations, post-Brexit Britain has experienced a surge in migration. Official figures published this week could show that net migration has hit close to one million, making it another record high.
India, South Africa and Ghana are among the countries that are having success with the new skilled visa route.
Figures obtained by the law firm Eversheds Sutherland show that 5,133 visas were granted to skilled workers from Ghana between 2019 and 2022. Their numbers are increasing at a robust pace, as are Nigerians who were granted 20,468 visas over the same period.
The number of skilled migrants obtaining visas from South Africa jumped to 6,784 but, at 116,301, it is Indians who dominate the skilled visa route.
The health sector makes great use of the scheme but software engineers have also been in particularly high demand across the economy. More than 35,000 IT professionals have come to the UK under the new system.
Another 5,368 skilled visas have been granted to chefs since January 2021. The figure for chartered and certified accountants was 9,147. However, nurses and care workers dominated the scheme with 53,820 and 35,494 visas granted, respectively.
The first skilled visas were also granted for the clergy and for band 9 nurses. In the final three months of last year, 274 clergymen and women arrived in Britain on skilled visas.
A small but growing number of hairdressers, dressmakers and therapists have also made use of this route, as have gardeners and librarians.
In the case of hairdressers and salon managers, their numbers increased to 34 in the final quarter of last year.
Skills shortages in the country’s food supply chains are also being plugged by migrants. As many as 2,458 visas were granted to butchers during this period, while the number of bakers stood at 115. A total of 104 farmers have come to Britain under the scheme since January 2021.
The data, which was obtained under the Freedom of Information Act, suggests that businesses are willing to absorb the cost of sponsorship to secure the talent they need even though the fees levied by the Home Office are high.
It comes at a time when many businesses are struggling to hire domestically. Although it is starting to weaken, Britain’s labour market is still tight and levels of economic inactivity are high.
There are still 282,000 more vacancies in the UK than before the pandemic even though the most recent official data shows that they fell by 55,000 in the three months to April. The same goes for the number of inactive workers, which fell by 156,000 over that three-month period, but is still relatively high.
A recent survey by the Federation of Small Businesses found that 80% of small firms are struggling to recruit candidates with suitable skills.
The figures will disappoint the home secretary, Suella Braverman, who recently called on businesses to train up workers in Britain before calling on overseas workers.
“High-skilled workers support economic growth. Fact,” she said in a speech at the National Conservatism Conference.
“But we need to get overall immigration numbers down, and we mustn’t forget how to do things for ourselves.”
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“It’s not xenophobic to say that mass and rapid migration is unsustainable in terms of housing supply, service, and community relations.”
Louisa Cole, principal associate at Eversheds Sutherland, said: “Since the UK exited lockdown we have seen skills shortages exposed and businesses look overseas for talented workers to plug the gaps revealed… We knew that UK businesses leaned on international talent, but since leaving the EU many have looked further afield than the EU as freedom of movement ended.
“In some respects there is now a level playing field for those outside of the EU when coming to the UK.
“This has been evident in the likes of the financial services sector where UK firms have brought more talent from countries such as India, China, Nigeria and South Africa post-Brexit.”
Rachel Reeves has been urged by a think tank to cut national insurance and increase income tax to create a “level playing field” and protect workers’ pay.
The Resolution Foundation said the chancellor should send a “decisive signal” that she will make “tough decisions” on tax.
Ms Reeves is expected to outline significant tax rises in the upcoming budget in November.
The Resolution Foundation has suggested these changes should include a 2p cut to national insurance as well as a 2p rise in income tax, which Adam Corlett, its principal economist, said “should form part of wider efforts to level the playing field on tax”.
The think tank, which used to be headed by Torsten Bell, a Labour MP who is now a key aide to Ms Reeves and a pensions minister, said the move would help to address “unfairness” in the tax system.
As more people pay income tax than national insurance, including pensioners and landlords, the think tank estimates the switch would go some way in raising the £20bn in tax it thinks would be needed by 2029/2030 to offset increased borrowing costs, flat growth and new spending commitments. Other estimates go as high as £51bn.
Torsten Bell appearing on Sky News
‘Significant tax rises needed’
Another proposal by the think tank would see a gradual lowering of the threshold at which businesses pay VAT from £90,000 to £30,000, as this would help “promote fair competition” and raise £2bn by the end of the decade.
The Resolution Foundation also recommends increasing the tax on dividends, addressing a “worrying” growth in unpaid corporation tax from small businesses, applying a carbon charge to long-haul flights and shipping, and expanding taxation of sugar and salt.
“Policy U-turns, higher borrowing costs and lower productivity growth mean that the chancellor will need to act to avoid borrowing costs rising even further this autumn,” Mr Corlett said.
“Significant tax rises will be needed for the chancellor to send a clear signal that the UK’s public finances are under control.”
He added that while any tax rises are “likely to be painful”, Ms Reeves should do “all she can to avoid loading further pain onto workers’ pay packets”.
The government has repeatedly insisted it will keep its manifesto promise not to raise income tax, national insurance or VAT.
A Treasury spokesperson said in response to the think tank report it does “not comment on speculation around future changes to tax policy”.
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Chancellor urged to freeze alcohol duty
Meanwhile, Ms Reeves has been urged to freeze alcohol duty in the upcoming budget and not increase the rate of excise tax on alcohol until the end of the current parliament.
The Scotch Whisky Association (SWA), UK Spirits Alliance, Welsh Whisky Association, English Whisky Guild and Drinks Ireland said in an open letter that the current regime was “unfair” and has put a “strain” on members who are “struggling”.
The bodies are also urging Ms Reeves “to ensure there will be no further widening of the tax differential between spirits and other alcohol categories”.
A Treasury spokesperson said there will be no export duty, lower licensing fees, reduced tariffs, and a cap on corporation tax to make it easier for British distilleries to thrive.
Leave retailers alone, Reeves told
This comes as the British Retail Consortium (BRC) warned that food inflation will rise and remain above 5% into next year if the retail industry is hit by further tax rises in the November budget.
The BRC voiced concerns that around 4,000 large shops could experience a rise in their business rates if they are included in the government’s new surtax for properties with a rateable value – an estimation of how much it would cost to rent a property for a year – over £500,000, and this could lead to price rises for consumers.
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Latest ONS figures put food inflation at 4.9%, the highest level since 2022/2023.
The Bank of England left the interest rate unchanged last week amid fears that rising food prices were putting mounting pressure on headline inflation.
“The biggest risk to food prices would be to include large shops – including supermarkets – in the new surtax on large properties,” BRC chief executive Helen Dickinson said.
She added: “Removing all shops from the surtax can be done without any cost to the taxpayer, and would demonstrate the chancellor’s commitment to bring down inflation.”
Donald Trump has revealed that media mogul Rupert Murdoch and his son Lachlan could be part of a deal in which TikTok in the United States will come under American control.
The US president also namedropped Michael Dell, the founder and CEO of Dell Technologies, as a possible participant in the deal during an interview with Fox News, which is owned by the Murdochs.
“I think they’re going to be in the group. A couple of others. Really great people, very prominent people,” Mr Trump said. “And they’re also American patriots, you know, they love this country. I think they’re going to do a really good job.”
Mr Trump said that Larry Ellison, founder and CEO of software firm Oracle, was part of the same group. His involvement in the potential TikTok deal had previously been revealed.
President Donald Trump speaking to reporters outside the White House. Pic: AP/Mark Schiefelbein
White House press secretary Karoline Leavitt said on Saturday that Oracle would be responsible for the app’s data and security, with Americans set to control six of the seven seats for a planned TikTok board.
This comes after Mr Trump said he and China’s Xi Jinping held a “very productive call” on Friday, discussing the final approval for the TikTok deal, much of which is still unknown.
Once confirmed, the deal should stop TikTok from being banned in the US after lawmakers decided it posed a security risk to citizens’ data.
Officials warned that the algorithm TikTok uses is vulnerable to manipulation by Chinese authorities, who can use it to push specific content on the social media platform in a way that is difficult to detect.
Congress had ordered the app shut down for American users by January 2025 if its Chinese owner ByteDance didn’t sell its assets in the country – but the ban has been delayed four times by President Trump.
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Mr Trump said on Sunday that he might be “a little prejudiced” about TikTok, after telling reporters on Friday: “I wasn’t a fan of TikTok and then I got to use it and then I became a fan and it helped me win an election in a landslide.”
After the call with Mr Xi, Mr Trump said in a Truth Social post: “We made progress on many very important issues, including Trade, Fentanyl, the need to bring the War between Russia and Ukraine to an end, and the approval of the TikTok Deal.”
Mr Trump later told reporters at the White House that Xi had approved the deal, but said it still needed to be signed.
Representatives for the Murdochs, Mr Dell and Mr Ellison have not yet commented on a potential TikTok deal.
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