Cutting migrant wage threshold won’t help Scotland, SNP claims

● Policy review dismissed as ‘extremely disappointing’ after it rules out different criteria for Scotland to boost immigration

The Scottish Government has issued a fresh call for powers to be devolved after a major review of migration policy ruled out applying a different wage threshold for immigrants in Scotland.

A report by the Migration Advisory Committee (MAC) recommended that the UK Government cuts the salary threshold for skilled migrants from £30,000 to £25,600 for those coming to the UK with a job offer.

But it ruled out having a different threshold for different parts of the UK, arguing that the differences in average wages was too small. It also warned that letting migrants work in parts of the UK outside London could also encourage a low-wage economy in less prosperous areas.

In a blow to ministers, the MAC said the government’s proposed points-based immigration system could have “zero effect” on providing more British jobs for British workers.

Ending freedom of movement after Brexit is also “likely to reduce future growth of the UK economy” as well as the population, the report states.

And it said that keeping new immigration rules “simple” but labelling them as a pointsbased system would “only be cosmetic and have no purpose”.

Scottish Government migration minister Ben Macpherson said there was a “clear need for a fundamentally different approach to migration policy to reflect Scotland’s distinct demographic and geographical needs”.

“It is extremely disappointing that the MAC report fails to respond to the serious concerns of respondents from across all sectors of the Scottish economy,” Mr Macpherson said.

“The committee recommendations offer little in the way of practical measures to help Scotland address acute issues of depopulation and skills gaps. Worryingly, it accepts the proposed changes will cut immigration, reducing the size of the UK population and total GDP.

“While the proposed reduction in salary thresholds from £30,000 to £25,600 is welcome, it does not go far enough given that around half of Scottish employees earn less than the proposed threshold. That rises to almost 90 per cent in the vital care sector.”

Downing Street has said legislation putting a new immigration system into law will only be revealed in March, with implementation likely to take many months.

Speaking to journalists, MAC committee chairman Professor Alan Manning said there was “an inherent unpredictability as to what will happen” under a new system.

“Immigration hasn’t really harmed people’s employment opportunities or their wages but equally it hasn’t really benefitted them very much either,” Prof Manning said.

The review considered the arrangements in Australia, Canada and New Zealand, which have long-standing points-based immigration systems.

It stated that an “important potential difference” in policy is that “Australia, Canada and New Zealand all want positive population growth” but that in contrast to the Scottish and Welsh governments, “the Westminster government makes no such statement”.

Ending free movement would see “slightly reduced pressures” on hospitals, schools and social housing and “slightly increased pressure” on social care, according to the MAC’S findings.

Immigration powers are reserved under the Scotland Act. Downing Street repeated its rejection of calls to devolve powers following the Scottish Government’s publication of plans for a separate “Scottish visa” on Monday.

The SNP’S immigration spokesman at Westminster, Stuart Mcdonald, said the UK government’s immigration plans would “completely fail Scotland”.

“When it comes to addressing Scotland’s specific needs, MAC reports are not fit for purpose. They give only limited attention to Scotland’s rural population and the needs of our health and social care workforce, and totally ignore other hugely important Scottish sectors including agriculture, hospitality and tourism,” Mr Macdonald said.

“It is now vital that migration powers are now devolved to Holyrood to ensure we can build a system that meets Scotland’s specific needs and values, including addressing the country’s unique issues of depopulation and ageing demographics.”

“The MAC report fails to respond to the serious concerns of respondents from across all sectors of the Scottish economy” BEN MACPHERSON Scottish Government migration minister