Calls for lighter visa restrictions mount as UK tech faces talent shortfall
Multiple firms have backed a report addressed to the Home Office pushing back on curbed restrictions
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Companies across UK tech are calling on the Labour government to change visa restrictions brought in under previous Tory rule, according to Centuro Global, the firm leading the charge.
Capitalizing on the change in administration, Centuro is asking that the government “reconsider recent restrictions” placed on the ‘Skilled Worker’ visa route. As part of this request, the firm will present the Home Office with a report representing the “critical mass” of affected businesses.
The restrictions in question are those imposed by the previous home secretary, James Cleverly, announced at the end of 2023. Changes included an increase of the baseline minimum salary to be sponsored for a Skilled Worker visa from £26,200 to £38,700.
Centuro claims such an increase is in direct conflict with the UK’s growth as the country's startups are also those most threatened by the current visa conditions.
“From high-growth startups to global-facing enterprises, the companies we work with tell us about the stark choice they face: give up on finding the best people or pay at rates they can’t afford,” Centruo said.
Centuro CEO Zain Ali added that the new parliament offers the “perfect opportunity” to reassess existing policies on immigration so they reflect both political and business needs. Centuro is calling on any other businesses to add their support.
Should the current visa restrictions remain in place, UK businesses could face a barrage of short-term talent acquisition difficulties that would have a ripple effect on the wider economy.
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“Businesses will struggle to find the right talent, leading to longer hiring times and higher recruitment costs. What's more, limiting the talent pool could drive up salaries, making it harder for smaller businesses and startups to compete,” Fozia Iqbal, a senior business immigration solicitor at law firm Harper James, told ITPro.
Iqbal added that companies could be forced to relocate roles overseas, potentially triggering widespread job losses, falling tax revenue for the government, and a sullied reputation for the UK as an attractive global tech hub.
“Tech is one of the crucial drivers for the economic development of the UK, and a restriction in access to essential talent may be perceived as hindering this innovation and the UK’s ability to stay competitive in a global market,” Iqbal said.
UK tech needs a diverse talent pool
As a fast-changing industry, tech feeds off access to a dynamic workforce which is constantly adapting to new requirements and filling gaps in burgeoning growth areas.
“The technology industry has historically relied on international talent to fill specialized roles. Fewer visa applications could make it harder for companies to find qualified candidates for important positions,” Riaz Moola, CEO and founder of edtech firm HyperionDev, told ITPro.
“Companies also thrive on new ideas, often driven by a diverse workforce. A reduction in overseas talent might lead to stagnation of new ideas and slow down innovation development,” he added.
According to Moola, UK tech could “lose its competitive edge” if it loses access to the best talent, and operations may be driven out of the country. He added that the UK could also see a push towards AI and automation as businesses look to compensate for dwindling staff.
“Ultimately, unless the new government makes positive changes, the UK may struggle to maintain its competitive edge on the global stage. Top-tier tech talent are more likely to choose a country with an easier immigration system,” Ashley Stothard, immigration executive at law firm Freeths, told ITPro.
George Fitzmaurice is a staff writer at ITPro, ChannelPro, and CloudPro, with a particular interest in AI regulation, data legislation, and market development. After graduating from the University of Oxford with a degree in English Language and Literature, he undertook an internship at the New Statesman before starting at ITPro. Outside of the office, George is both an aspiring musician and an avid reader.
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