More immigration cap anger from small businesses

Fast-growing small businesses are the latest group to speak out against the immigration cap, saying the restrictions on hiring non-EU migrants are forcing them to turn away work because they are unable to hire the right people. The news follows twin criticisms of the cap last week from the prime minister's election speechwriter and the House of Commons Home Affairs Committee.

Fast-growing small businesses are the latest group to speak out against the immigration cap, saying the restrictions on hiring non-EU migrants are forcing them to turn away work because they are unable to hire the right people. The news follows twin criticisms of the cap last week from the prime minister’s election speechwriter and the House of Commons Home Affairs Committee.

It also follows renewed confusion over the impact of the cap, with immigration minister Damian Green coming unstuck on last Wednesday’s Newsnight over the effect of excluding intra-company transfers from the cap, which the Home Affairs Committee recommend including for the cap to work, and which some companies say will be of little help.

Kevin McSpadden, founder of data analysts More2, told today’s Telegraph:

“We have six recruitment agencies looking for people and have looked at 80 CVs. It’s totally slowing us down and giving me a backlog of business to the point where people are not willing to talk to you because you can’t take on work for four months. It’s definitely damaging my business.”


“It’s not a deliberate policy to go out and find non-EU staff as it’s a pain to jump through the hoops. But we just need the best people…

“Everything I hear is the private sector is going to lead the growth. I am all up for that. The faster I can grow the faster I can help my clients grow, but I don’t need more things put in the way of that.”

Last Tuesday, in a column in the Standard, David Cameron’s former speechwriter Ian Birrell had written of the cap:

It was the sort of gesture politics that makes some sense in opposition but turns out to be nonsense in government. Ministers say they get endless complaints about the policy whenever they meet businesspeople.

It is unfortunate that the Liberal Democrats failed to use their bargaining powers to get it abandoned; they should have insisted it was scrapped in return for their humiliation over the proposed rise in university tuition fees.

Instead we are stuck with this daft idea, which has been grafted on to Labour’s similarly foolish points-based system of entry.

Next week, the Migration Advisory Committee will publish its report into the cap, looking at the level for 2011/12 of the annual limits on economic migration to the UK under Tier 1 and Tier 2 of the points-based system.

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8 Responses to “More immigration cap anger from small businesses”

  1. L DTUC

    RT @leftfootfwd: More immigration cap anger from small businesses: reports @shamikdas

  2. oldpolitics

    Oh come on. There may be ‘no such thing as bad publicity’, but what’s really going on here?

    Almost 1 in 10 recent graduates are unemployed, 1.5 million people are claiming jobseekers, and yet a company that does data cleansing and spreadsheet jiggery-pokery for junk mail, er, I mean direct marketing, can’t recruit?

    Maybe they should pay more, or provide on-the-job training? They could even mention on their website that they are looking for new recruits, if the situation is that desperate.

  3. Stephen W

    What the hell is this? We have 2.5 million unemployed in this country and the highest graduate unemployment rate for 18 years. Anyone who claims they cannot get qualified people in this country is out and out lying.

  4. merthyr_bill

    we have more like 6 million unemployed in this country and many more underemployed or in government non-productive jobs.

    30% here in Merthyr on the sick. you really think that’s the case? I know the place is depressing but Jesus! funny thing is Labour sticks everyone on the sick hoping for their vote but it takes away their humanity and dignity. When the jobs do appear, they can’t even take them. 30% ‘sick’ in Merthyr but lots of jobs but they mainly go to Poles.

  5. Kevin leonard

    You pay peanuts and you get monkeys was what they used to say in the old days nowadays however the reason some companies wish to employ overseas workers is so they can pay less than they would have to if they employed a British Graduate.
    Meanwhile over at the tax debate…..

    Fredthe red said…There was an interesting conceptual idea about Taxing a business at the point of sale, not through profit made.
    It would seem that if you add a Sales Tax of say, 8% to the purchase price of an item, then the Government would raise more money than it currently does through Corporation Tax.
    VAT should be Standard rate on everything upto £60,000 but increase to 50% on SINGLE ITEMS costing more than this sum. So a business selling 61,000 items at £1 a time will still invoice for Standard VAT, but a business selling say a Car or Boat or Yacht or Plane will have to charge the Luxury VAT rate.
    Similarly, any liquid costing more than £500 a litre (eg wine or perfume) must be charged at 50% VAT rate.
    Everything, all Supermarket items, Petrol, newsagent, cafe, car dealership and so on should have to add this to the cost and pay the Tax weekly to the HMRC Coffers.
    Banking transactions should have a 1% rate on Credit Cards/Cheques/Cash withdrawals etc.
    Stocks and shares should be charged a Flat rate of 5% to both buyer and seller at time of deal, this would eradicate short selling at a stroke and raise money for the Government, without any delay….it will also simplify the system as there will be no need to charge Capital gains Tax, the Government will get it at point of sale.
    House purchase and rental should also have a flat rate tax TO BUYER AND SELLER, 1% per 100,000 over 200,000 upto 500,000 and then 2% per 100k upto 1 million, then 3 % upto 1.5 mill, 4% upto 2 mill, 5% upto 2,5mill and so on, until you reach 15% at 7.5 million (to buyer and seller) anything over 15 million is then taxed at 25% to buyer and seller, without limit.
    Everyone should get a £15,000 TAX and NI FREE earning allowance, BUT NI should be paid on ALL EARNINGS ABOVE THAT SUM.
    A Flat rate of Tax should be introduced at 33% on all taxable earnings upto 200,000 and then increased to 50% on all earnings above this sum.
    NO ALLOWANCES for travel etc, If it is necessary for your job, then your employer must pay the expenses as part of their trading, not you as part of your allowance.
    Tax would be simple.
    Or as the Tax Man ad goes, Tax needent be taxing.!!!
    Easy to implement and nowhere to hide from the Taxman….whatever you spend will be taxed, whatever you earn will be subject to NI above the threshold. We will all be better off, the Country included.

  6. Fred Mitcheson

    Of course small businesses do not want an immigration cap, that is the only way they can get cheap labour. It’s not as if they are bellowing forth the flag of multi-culturism Cmon, do better than this LFF. Don’t suggest small business are on the side of organized labour, the last thing they want is unionized workers

  7. Mr. Sensible

    So much for making sure that Britain is open for business…

  8. Home secretary forced to "water down" immigration speech | Left Foot Forward

    […] or finding a way to abandon or redefine the target. This was followed by criticism from small businesses, who argue the tier 1 cap will be “damaging to […]

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