Immigration policy must reflect Scottish needs, minister told

Published on Sunday 5 December 2010 17:06

Leading business and industry organisations have joined forces with the Scottish Government to warn that tough new immigration caps will damage economic recovery.

A joint letter has been sent to UK Immigration Minister Damian Green calling for Scotland to be allowed to vary the level of immigration to meet its needs.

The financial services business sectors will be among those hit if the caps are introduced next April, according to a letter sent by external affairs minister Fiona Hyslop.

It states: "A limit on net non-EEA (European economic area] migration to bring it to the level of 'tens of thousands a year' is likely to impede Scotland's economic recovery and distort that labour market."

The letter has been signed by Scottish Chambers of Commerce, Institute of Directors in Scotland, Federation of Small Businesses, as well as Universities Scotland, NHS Scotland, Cosla, STUC and Scottish Social Services Council.

Ms Hyslop said: "We are responding to concerns from Scottish businesses, employers, universities and the NHS about the UK government's proposed annual limit and its potential to cause great harm to the Scottish economy.

• The letter to Damian Green

"They tell us the temporary cap is already making it difficult to recruit and retain the world-class talent so essential to our economy's success.

"The situation here in Scotland is very different to other parts of the UK and that is why we need a flexible approach to immigration."

The lower annual limit of 21,700, excluding internal company transfers, is already under fire from the Scottish Government. The letter warns that creative industries, energy, financial and public services, life sciences and tourism will be among the areas that will suffer.

Andy Willox, the Federation of Small Businesses' Scottish Policy Convenor, said: "Any moves to restrict Britain's access to the sharpest minds and greatest talents are going to make businesses nervous.

"The business community needs to be free to employ the best people for the job to drive growth in the economy.

"Scotland has particular labour market challenges and, if a cap on non-EEA migration must be set, there has to be enough flexibility in the system to take our particular circumstances into account."

Ministers are concerned because Scotland has a larger proportion of small businesses and a different labour market from other parts of the UK. They fear that limit will target the skilled workers needed to help the country out of recession.

The letter adds: "We need a flexible approach to be taken to the implementation of the annual limit in Scotland, otherwise there will potential negative effects for our businesses, our labour market and economy."