Business leaders sound the alarm over new plans

SCOTTISH business groups have warned the proposed new UK immigration rules would pose major challenges for firms north of the Border.

Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce said the plans would also require “continuous review” to address critical labour shortages.

She said: “Companies need to secure talent which is both domestic and international.

“The expansion of the seasonal workers scheme is clear recognition of the important economic contributions the agriculture sector makes to Scotland. However, the proposed salary threshold does not go far enough to support specific sectors in Scotland.

“The proposals will present major challenges for key sectors, such as hospitality, care and tourism to be able to recruit and we urge the UK Government to ensure all workable options are in the mix, including proposals from the Scottish Government and other partners.’’

Andrew Mcrae of Federation of Small Businesses in Scotland, said only five per cent of Scottish small businesses currently engaged with the immigration system, so employers were understandably concerned about the added burdens.

He said: “The system is notoriously complex and few small businesses will be able to absorb high administration costs – or have the resources to prepare for new rules in 10 months’ time.

“For well-known sectoral and demographic reasons, Scotland’s small employers have a greater reliance on EU workers than the UK average.

“These staff are central to the success of many businesses in Scotland and therefore it’s crucial that employers encourage them to apply to the EU Settlement Scheme.

“Small businesses need a system that reflects Scotland’s needs without tying them in red tape.”