UK must drop the planned £30,000 salary threshold for skilled migrants, writes Gregor Scotland Immigration is ‘economic necessity’ so £30k salary rule must go

This week CBI Scotland joined stakeholders from across Scotland in appearing before the House of Commons Scottish affairs committee to give the reaction of business to the UK government’s post-brexit immigration proposals.

With access to people and skills cited by Scottish firms as one of the biggest challenges they face, ensuring businesses can continue to access workers from overseas is crucial to the Scottish economy.

The scale of need is severe. Last year’s Cbi/pearson education and skills survey found that threequarters of businesses in Scotland expect to increase their number of higher-skilled roles over the coming years.

However, nearly two-thirds of those firms fear they won’t have enough people with the right skills to fill them. Demand is already outstripping supply and businesses are clear: the UK government’s immigration proposals need a change of direction if they are to work for the Scottish economy.

The biggest stumbling block for Scottish firms is the possibility of a £30,000 salary threshold for skilled workers. With the median annual salary in Scotland £23,833 and more than two-thirds of Scottish jobs paying under that £30,000 mark, too many skilled workers, often in vitally important jobs, simply wouldn’t meet that threshold.

Even with free movement, today many hospitals, housebuilders and manufacturers in Scotland are already struggling to find the people they need at salaries well below £30,000.

When you consider that alongside the fact that nearly 5 per cent of Scotland’s total population come from the European Union, you can understand why firms across a range of sectors are becoming increasingly anxious.

Take hospitality and accommodation for example, which is vital to the Scottish economy. More than nine in ten workers in that sector in Scotland earn less than £30,000, with 12 per cent from European Economic Area countries. A salary threshold at this level has to be ruled out if the new immigration system is to work for all sectors of the economy and all parts of the UK.

Immigration is not just about the so-called brightest and best. Businesses in Scotland need access to overseas workers of all skill levels if they are to generate the economic growth needed to fund our public services.

Yet the current proposals would see only a temporary, 12-month route for overseas workers earning less than the salary threshold. This would encourage businesses to hire a different person every year, increasing costs and churn, having a negative impact on productivity and local integration.

It’s not good for business and it’s not good for the public either.

Access to lower skilled workers is too often viewed as a false choice for businesses between investing in staff and training or accessing labour from overseas. Nine in ten firms operating in Scotland have a learning and development strategy and more than eight in ten have a dedicated training and development budget.

The reality is that businesses need to continue to invest in their staff and access overseas workers if we are to fill the skills shortages that are already biting.

The White Paper proposals have understandably led to a return of the debate about whether Scotland could, and should, do things differently to the rest of the UK.