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Skilled workers 'may be exempt from immigration controls': Hammond | |
(35 minutes later) | |
The chancellor has indicated that highly skilled workers may be exempt from the Government's planned immigration controls. | |
Philip Hammond said he could not see why firms should be restricted from recruiting "high level" workers. | |
The public was not concerned about controls on "computer programmers, brain surgeons, bankers", he said. | |
The chancellor said voters wanted restrictions on those migrants competing for "entry level jobs." | |
Giving evidence to MPs on the Treasury Select Committee, Mr Hammond did not dispel suggestions that he supported students being taken out of the target for reducing net migration. | |
Mr Hammond's comments will fuel growing speculation that the government wants to introduce a work visa scheme aimed at low-skilled migrants. | |
On Tuesday night Downing Street released details of the aims of the government's immigration sub-committee, which included a commitment to introduce a "targeted visa scheme". | |
Elsewhere, Mr Hammond - who supported the remain campaign - appeared critical of some of his pro-Brexit cabinet colleagues. | |
He said those seeking "hard decisions" risked undermining the prime minister's negotiations with the European Union. | |
The chancellor also criticised some of the recent briefing against him: "It would be far more helpful if we could conduct negotiations privately without leaks to newspapers." | |
Analysis: Kamal Ahmed, Economics editor | Analysis: Kamal Ahmed, Economics editor |
The chancellor has said controversial Treasury analysis of the economic shock the UK might face if it left the European Union is now "partially invalid". | The chancellor has said controversial Treasury analysis of the economic shock the UK might face if it left the European Union is now "partially invalid". |
It is a significant break with his predecessor, George Osborne, and with what became known by critics of the Remain campaign as "Project Fear". | It is a significant break with his predecessor, George Osborne, and with what became known by critics of the Remain campaign as "Project Fear". |
Philip Hammond said some of the assumptions behind the document - which suggested a significant drop in economic growth - had been superseded by events. | Philip Hammond said some of the assumptions behind the document - which suggested a significant drop in economic growth - had been superseded by events. |
Those close to the chancellor made it clear the models were not wrong for the time, but the circumstances had now changed. | Those close to the chancellor made it clear the models were not wrong for the time, but the circumstances had now changed. |
It is also clear that Treasury officials still believe that there will be an economic slowdown as Britain negotiates its exit from the EU, a position backed by the Bank of England. | It is also clear that Treasury officials still believe that there will be an economic slowdown as Britain negotiates its exit from the EU, a position backed by the Bank of England. |
Read Kamal's blog in full | Read Kamal's blog in full |
MPs on the select committee also questioned the chancellor about the impact of Brexit on the economy. | MPs on the select committee also questioned the chancellor about the impact of Brexit on the economy. |
Mr Hammond said they were right to identify that "uncertainty is the big challenge in the next phase of this process", adding: "It's a challenge to our economy - there will be a period inevitably of uncertainty until we know the outcome of the negotiations." | Mr Hammond said they were right to identify that "uncertainty is the big challenge in the next phase of this process", adding: "It's a challenge to our economy - there will be a period inevitably of uncertainty until we know the outcome of the negotiations." |
He also tried to calm fears that the financial services sector would be hit hard by Brexit by saying that retaining passporting was important and "would be the ideal outcome". | He also tried to calm fears that the financial services sector would be hit hard by Brexit by saying that retaining passporting was important and "would be the ideal outcome". |
Passporting refers to the sector maintaining the same access to the EU's financial services market as it enjoys under the UK's membership of the union. | |
'Extremely important' | 'Extremely important' |
"The reality is that financial services remains our single largest sector; it is responsible for a very large number of jobs straight across the United Kingdom, it's not London-based industry," Mr Hammond said. | "The reality is that financial services remains our single largest sector; it is responsible for a very large number of jobs straight across the United Kingdom, it's not London-based industry," Mr Hammond said. |
"The industry knows that we regard it as extremely important, the industry knows that we understand that it has a particular set of challenges as we go into this period of negotiation with the European Union. And I hope the industry knows - it certainly should know - that helping to address these challenges and taking account of these challenges will be a very high priority for the government." | "The industry knows that we regard it as extremely important, the industry knows that we understand that it has a particular set of challenges as we go into this period of negotiation with the European Union. And I hope the industry knows - it certainly should know - that helping to address these challenges and taking account of these challenges will be a very high priority for the government." |
However, the Chancellor admitted that some banks and financial firms were being "realistic and are looking at other options beyond passporting to protect their interests". | However, the Chancellor admitted that some banks and financial firms were being "realistic and are looking at other options beyond passporting to protect their interests". |
Mr Hammond also insisted that the Bank of England's Monetary Policy Committee, which sets interest rates, would remain responsible for monetary policy. | |
That stance was called into question after Mrs May made a surprise attack on the Bank in her speech to the Tory Party conference this month, saying that "a change has got to come". | |
The Bank's actions - such as maintaining low interest rates since the financial crash - had meant those with assets such as property had got richer, while those without had suffered, Mrs May said. | |
Mr Hammond was asked what Mrs May's promised "change" referred to if it was not monetary policy. | |
He said: "There will be no change in monetary policy. Monetary policy is independently determined, that will continue to be the case." |