British businesses are urging Rishi Sunak to rethink a planned rise in visa fees for migrant workers, arguing it would harm the UK’s competitiveness and efforts to plug labour shortages.
The Financial Times reports John Dickie, chief executive of lobby group BusinessLDN, has called upon the Prime Minister to reassess the measure as businesses struggle to recruit staff in a tight labour market.
Dickie further argued UK work visas are already among the world’s most expensive, with the cost of a skilled worker visa for more than three years to rise from £1,235 to £1,480. The immigration health surcharge, which funds NHS access for migrants and has been frozen since 2020, will increase 66% to £1,035.
The move is intended to help fund public sector pay rises.
Dickie added: “At a time when businesses face a difficult economic outlook and are struggling with significant skills gaps, this measure undermines our competitiveness when it comes to attracting top talent compared to other countries.”
Jonathan Haseldine, policy manager at the British Chambers of Commerce, urged the government to expand its shortage occupation list to make it easier for more sectors to hire from overseas.
“It comes at a time when firms are also struggling with rises in interest rates, energy costs and broader inflationary pressures,” he said. “There is a limit to how much additional cost businesses can take.”
