‘Tech visas’ to boost British industry
Chancellor’s proposed fast-track scheme aimed at attracting global talent to UK’s £7bn fintech sector
RISHI SUNAK is preparing to unveil new “tech visas” in the Budget to offer post-Brexit support for Britain’s dynamic industries and attract more foreign investment, The Sunday Telegraph understands.
The Chancellor has drawn up proposals for a new fast-track scheme to attract global talent to UK start-ups and its £7 billion fintech sector, which is considered the powerhouse of Europe due to the number of “unicorn” firms worth more than a billion pounds that are based there.
According to Whitehall sources with knowledge of the plans, the new visas are likely to be approved by Tech Nation, the national network representing tech entrepreneurs.
Boris Johnson is understood to back the proposal, with discussions already taking place between senior Downing Street officials and civil servants.
The final details are still being drawn up, but insiders expect it will be similar to the global talent visa announced last year to attract the world’s leading scientists to Britain.
While the EU and non-EU citizens hoping to live and work in the UK postBrexit must now meet a specific set of requirements under the points-based immigration system, the global talent visa contains no cap on numbers for people who are suitably qualified.
New tech visas are understood to be one of the recommendations made by Ron Kalifa, the former chief executive of Worldpay, who launched an independent review in July to identify further growth opportunities for fintech post-Brexit.
The Chancellor is keen to maintain the UK’s status as a global hub for the industry and to overcome any challenges posted by exiting the EU. Fintech firms are often heavily reliant on European talent.
With the Budget due to be dominated by the Covid-19 pandemic, Mr Sunak is also expected to roll over many of the support schemes due to expire at the end of March while lockdown restrictions are gradually lifted.
Senior business leaders expect him to announce a six-month extension of the furlough scheme, before gradually phasing it out in the summer. He is also due to extend the £20 Universal Credit uplift by a further six months.
The Chancellor is also expected to bring back the job retention bonus, the £1,000 payment for employers who kept furlough workers on.
However, this newspaper understands that bounce-back loans of up to £50,000 and coronavirus business interruption loans of up to £5 million, guaranteed up to 80 per cent by the Government, will not be extended.
Instead they will be replaced by a new system, likely to be modelled on the Enterprise Finance Guarantee, which will ensure banks continue to lend throughout the remainder of the pandemic.
The business rates holiday for retail, hospitality and leisure businesses is also due to be extended, with the Government recently instructing councils to delay issuing bills until after the Budget.
Treasury insiders have signalled that Mr Sunak is likely to delay any major tax rises until a second fiscal event in the Autumn, with senior figures in Number 10 pushing for the Budget to focus on Covid support.
Conservative MPs railing against tax rises have also been buoyed by new data released this week, showing that borrowing in the 10 months to January is now £69 billion less than the Office for Budget Responsibility had estimated in November.
Downing Street is particularly keen to kill off plans to align capital gains tax with income tax, although Mr Sunak is expected to announce some limited measures to demonstrate his determination to get on top of the country’s £400billion deficit.
This includes setting out a hike in corporation tax over the course of this Parliament and freezing the planned increase in personal income tax allowances to £12,500 and £50,000.