Post-Brexit immigration rules ‘threaten Yorkshire businesses’

NEW POST-BREXIT immigration rules could cripple Yorkshire’s manufacturing industry, according to new research.

Analysis released today by the Confederation of British Industry has laid bare the region’s reliance on workers from the European Union and warns that a £30,000 floor on wages could stifle growth.

Under restrictions being considered by ministers, firms could be prevented from employing workers on salaries of less than £30,000 for more than a year under a new visa system.

However, the CBI study outlined the severe difficulties businesses would face if the salary threshold recommended by the Migration Advisory Committee was introduced.

It warned that Yorkshire and the Humber regions were particularly exposed, with 71 per cent of workers earning less than £30,000 per year and the average wage in the region at £21,803 – well below the UK average of £24,006. And it suggested that the manufacturing sector in region – where 60 per cent of workers earn under £30,000 – would be particularly impacted.

It highlighted food and drink manufacturing, which employs 26 per cent of its workers from the European Economic Area.

Beckie Hart, CBI Regional Director for Yorkshire and the Humber, said: “We know that businesses in Yorkshire and the Humber are creating jobs but many are already struggling to fill vacancies and suffering from skills shortages.

“Continued access to overseas workers after Brexit is vital to drive growth, innovation and prosperity in the region. The Government’s current proposals risk causing significant harm at a time of uncertainty for business.

“A one-year limit on workers earning less than £30,000 would encourage firms to hire a different person each year, needlessly increasing costs and discouraging migrants from integrating into communities.”

A Home Office spokesperson said: “We are confident the future immigration system will support Yorkshire’s businesses, for example, by removing the caps on the number of work visas, reducing the skills threshold, abolishing outdated labour market tests and bringing in a new digital sponsorship system to cut processing times.”