Brexit worker shortage could hit Lochaber firms

More than a fifth of businesses in Lochaber could close or be forced to radically change their operations if recruiting EU workers becomes much harder due to Brexit, the Federation of Small Businesses Scotland (FSB Scotland) has warned.

Coupled with the potential threat of the coronavirus outbreak spreading, it means businesses, including those in hospitality, fish farming and forestry, are facing worrying times.

Research for FSB Scotland’s new report on building an immigration system that works for Scottish small businesses found the further north and more remote one gets, the more reliant businesses are on EU workers.

Currently 40 per cent of Scottish firms employ at least one EU worker and, based on past research, the Highlands and Islands figure is likely to be at least 55 per cent.

Skye-based Hamish Fraser, FSB Highlands and Islands area leader, dismissed suggestions the growth in EU worker numbers is simply due to low wages being paid.

‘It happens because businesses really do have no choice. What with low unemployment, a declining and ageing population, and a variety of well-known remoteness barriers, Highlands and Islands employers seeking staff with the skills and approach to work they require are forced to cast their nets ever wider,’ said Mr Fraser.

‘Clearly, the UK is a diverse country with differing needs, but we now have a new UK migration policy based on a one-size-fits-all approach.

‘For a whole variety of reasons, national one-size policies don’t work in the Highlands and Islands, and the consequence for this region if the new policy is implemented will be dire.

‘Indeed, our research found one fifth of small Scottish businesses could close or radically change their business models if recruiting EU workers became much harder; the figure for this region [Highlands and Islands] would be higher still.’

FSB Scotland’s new report has identified steps the UK Government can adopt to meet the needs of small Scottish businesses, including separate visas piloted for remote parts of Scotland and the UK, making it easier for migrant workers to come here.

FSB development manager for the Highlands and Islands, David Richardson, added: ‘Claims that hiring European workers is about cheap labour are just rubbish. These people want jobs, they want the training and skills that come with them, and employers want people with that right approach to work.

‘With Lochaber’s population forecast to fall over the next 20 years, coupled with an already ageing population, it will become a seller’s market when it comes to labour as there won’t be enough workers to go round,’ he said.

‘Claims that this is about cheap labour are just rubbish.’