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Brexit should end EU citizens' special access to UK, says report | Brexit should end EU citizens' special access to UK, says report |
(35 minutes later) | |
Free movement from the EU should end after Brexit and the UK should embrace a Canada-style system in which there is no preferential access to the labour market for citizens of any other country, according to the government’s migration advisory committee (MAC). | Free movement from the EU should end after Brexit and the UK should embrace a Canada-style system in which there is no preferential access to the labour market for citizens of any other country, according to the government’s migration advisory committee (MAC). |
The report, which is intended to advise ministers on how to proceed after Brexit, concedes it may not be possible to achieve a country-neutral system because the UK may not have an entirely free hand in determining migration policy after the it leaves the EU because the final policy will be subject to exit negotiations. | The report, which is intended to advise ministers on how to proceed after Brexit, concedes it may not be possible to achieve a country-neutral system because the UK may not have an entirely free hand in determining migration policy after the it leaves the EU because the final policy will be subject to exit negotiations. |
It concludes that if “immigration is not to be part of the negotiations with the EU, and the UK is deciding its migration system in isolation, we recommend moving to a system in which all immigration is managed with no preferential access to EU citizens”. It said the model would be similar to that used in Canada, which had “an open, welcoming approach to migration but no free movement agreement with any other country”. | It concludes that if “immigration is not to be part of the negotiations with the EU, and the UK is deciding its migration system in isolation, we recommend moving to a system in which all immigration is managed with no preferential access to EU citizens”. It said the model would be similar to that used in Canada, which had “an open, welcoming approach to migration but no free movement agreement with any other country”. |
The committee was set up by Amber Rudd when she was home secretary to inform the UK’s migration policy after Brexit. It is designed to inform a white paper that has repeatedly been delayed but is due this autumn. | The committee was set up by Amber Rudd when she was home secretary to inform the UK’s migration policy after Brexit. It is designed to inform a white paper that has repeatedly been delayed but is due this autumn. |
EU citizens have, until now, been able to enter the UK freely, seeking work on arrival, and concerns about the impact of free movement is considered to be one of the central reasons why the country voted for Brexit. But the report is likely to strengthen the hand of those who want the UK to take a tough stance in the Brexit negotiations. | |
The MAC report says there has a been small impact on wages and employment in the UK, arguing it has had “neither the large negative effects claimed by some, nor the benefits claimed by others”. | The MAC report says there has a been small impact on wages and employment in the UK, arguing it has had “neither the large negative effects claimed by some, nor the benefits claimed by others”. |
But it also argues that because “the biggest gainers from migration are often the migrants themselves”, British ministers should see preferential access to the UK labour market as “something of value to offer in the negotiations” with the EU over the UK’s exit. | But it also argues that because “the biggest gainers from migration are often the migrants themselves”, British ministers should see preferential access to the UK labour market as “something of value to offer in the negotiations” with the EU over the UK’s exit. |
Any future policy determined by the UK should favour higher-skilled workers over lower-skilled ones, the MAC advises, and says there should be no sector specific migration schemes except possibly for one to supply seasonal labour in agriculture. | Any future policy determined by the UK should favour higher-skilled workers over lower-skilled ones, the MAC advises, and says there should be no sector specific migration schemes except possibly for one to supply seasonal labour in agriculture. |
Jonathan Portes, senior fellow at the thinktank The UK in a Changing Europe, whose research fed into the report, said: “Contrary to fears that immigration might reduce the incentive for businesses to boost productivity, my paper suggests the opposite: immigration has a substantial and positive impact on productivity. Areas that see inflows of immigrants see productivity rise. | Jonathan Portes, senior fellow at the thinktank The UK in a Changing Europe, whose research fed into the report, said: “Contrary to fears that immigration might reduce the incentive for businesses to boost productivity, my paper suggests the opposite: immigration has a substantial and positive impact on productivity. Areas that see inflows of immigrants see productivity rise. |
“What does that mean for policy? The MAC are too polite to say so, but this report shows beyond doubt that the government’s economically illiterate net migration target should finally be put out of its misery. After Brexit, we will need immigration – for growth, productivity, and not least to help the public finances – more than ever.” | “What does that mean for policy? The MAC are too polite to say so, but this report shows beyond doubt that the government’s economically illiterate net migration target should finally be put out of its misery. After Brexit, we will need immigration – for growth, productivity, and not least to help the public finances – more than ever.” |
Prof Alan Manning, who wrote the conclusion to the report, said the problem with free movement from the European Union was that “it leaves migration to the UK solely up to migrants and UK residents have no control over the level and mix of migration”. But he also concludes that free movement is not guaranteed to cause problems because “that likely depends on the level and mix of the migration flows that result”. | Prof Alan Manning, who wrote the conclusion to the report, said the problem with free movement from the European Union was that “it leaves migration to the UK solely up to migrants and UK residents have no control over the level and mix of migration”. But he also concludes that free movement is not guaranteed to cause problems because “that likely depends on the level and mix of the migration flows that result”. |
The MAC report says that the existing tier 2 skilled workers scheme, which currently applies to people outside the EEA for skilled jobs earnings more than £30,000 a year, provides a useful template for a future migration scheme. Existing monthly caps should be abolished and Manning said it should be extended to “workers in medium-skilled jobs”. | The MAC report says that the existing tier 2 skilled workers scheme, which currently applies to people outside the EEA for skilled jobs earnings more than £30,000 a year, provides a useful template for a future migration scheme. Existing monthly caps should be abolished and Manning said it should be extended to “workers in medium-skilled jobs”. |
Manning said there should be no scheme for lower-skilled workers, aside, possibly, from in agriculture, although Manning recognised that some employers in some industrial sectors “will lobby intensively against this proposal”. He concluded that there would be enough low-skilled workers in the UK because “most of the existing stock will remain and there would likely be a continued flow through family migration or the existing youth mobility scheme”. | |
The academic also indicated that he believed that the government’s annual net migration target of 100,000 was not helpful, arguing it would be better to raise the salary threshold for skilled worker visas to reduce inflows to the UK. The target has never been met since it was introduced by David Cameron in 2010. Manning said: “If you want influence migration flows it is much better to influence salary thresholds rather than use hard caps.” | The academic also indicated that he believed that the government’s annual net migration target of 100,000 was not helpful, arguing it would be better to raise the salary threshold for skilled worker visas to reduce inflows to the UK. The target has never been met since it was introduced by David Cameron in 2010. Manning said: “If you want influence migration flows it is much better to influence salary thresholds rather than use hard caps.” |
Net migration to the UK in the year to the end of March 2018 was 270,000, an increase of 28,000 year on year. But net migration from the EU sank to 87,000 in the same period, the lowest level since the Brexit vote in June 2016, according to the most recent set of figures from the Office of National Statistics. | |
Business leaders and analysts expressed immediate concern over the recommendation that highly skilled workers should be favoured over low-skilled workers in future migration policy. They fear a £30,000 salary threshold and skilled worker visa system would make it almost impossible to recruit workers in warehouses, meat packing and fish factories, cleaning services, care and hospitality. | |
“The MAC has missed the mark by failing to recognise the critical role of lower skilled workers to our economy,” said Jasmine Whitbread, the chief executive of London First, a business campaign group representing 200 big businesses in the capital. | |
“Businesses want access to high and medium level skills from around the globe, as the MAC rightly recognises, but this can’t be at the expense of having enough workers to keep our hospitals, care homes, hotels and building sites up and running,” she added. | |
Stephen Clarke, a senior economic analyst at the Resolution Foundation, said: “ If enacted these proposals would effectively end low-skilled migration, while prioritising mid- and high-skill migration in areas where we have labour shortages. This would represent a huge shift for low-paying sectors like food manufacturing, hotels and domestic personnel, where over one in five workers are migrants.” | |
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