To alleviate labor shortages, the CEO of Next has urged the British government to allow more foreign employees into the country.
Lord Wolfson, a prominent Brexit supporter, stated that the United Kingdom’s present immigration policy was stifling economic growth.
He suggested that firms should be taxed for employing foreign workers to encourage them to hire British workers first.
The administration stated that it had fulfilled its pledge to “regain control of our immigration system.”
A government spokesperson stated, “Unemployment is at record lows and we must continue to bring in the excellent key workers the United Kingdom needs, including thousands of NHS doctors and nurses through the Health and Care Visa and the Seasonal Workers scheme, which provides the workforce our farmers and growers require.
Free trade?
Lord Wolfson, a Conservative peer, told the BBC, “People are lining up to come to our country to pick crops that are decaying in fields and to work in warehouses that would otherwise be inoperable, but we’re not letting them in.”
And we must have a different strategy for migration that is economically productive.
He stated that the government must determine whether the United Kingdom is an open, free-trading nation or whether, post-Brexit, it wants to become “fortress Britain,” closing the drawbridge to foreign labor at a great economic cost.
“I believe that in terms of immigration, this is not the Brexit that I or many of those who voted for Brexit intended,” he stated.
“And we must remember, you know, that we’re all trapped in this Brexit debate. We must remember that the shape of Britain after Brexit will be determined by all of us, not just those who voted for Brexit.
The bulk of British citizens have a “quite pragmatic perspective” of immigration, he continued.
Lord Wolfson stated, “Yes, control it where it is detrimental to society, but admit those who can contribute.”
He proposed a market-based remedy for the present labor shortages, which have harmed industries such as healthcare, hospitality, and logistics.
He proposed that firms that need foreign workers should be able to pay a 10% tax on foreign workers’ salaries to the government to ensure that only those enterprises that cannot find UK workers will recruit abroad.
“It would mean that businesses would never hire an outsider if they could locate a suitable candidate in the United Kingdom,” he said. If they cannot, though, they will pay a premium.
The Office for National Statistics anticipated that net migration to the United Kingdom was approximately 239,000 in the year ending June 2021, a little decrease from the previous year’s total of 260,000. The number was driven by immigration from nations outside the European Union.
When the United Kingdom was a member of the European Union, it was subject to the principle of free movement, which permitted EU citizens to live and work in any EU country.
This freedom terminated on 31 December 2020 for EU citizens entering the United Kingdom and for British citizens entering the European Union.
In a poll conducted by the CBI business lobbying group last month, it was determined that nearly three-quarters of UK businesses had experienced labor shortages in the preceding 12 months.
According to the CBI, nearly half of the companies surveyed urged the government to offer temporary visas for positions with “clear shortages.”
The aircraft sector requested special immigration visas for foreign workers throughout the summer, but the request was denied. Flight cancellations and airport delays were attributed to a manpower shortage in the business.
The government has implemented a skilled worker visa program for shortage-stricken occupations. In addition, it provides a seasonal workers program for jobs like fruit picking and a Health and Care Visa for medical personnel.
There is no need for a breakdown
Lord Wolfson acknowledged that 2023 would be a very difficult year for consumers and businesses, but stressed that many enterprises should not anticipate government assistance, which should be reserved for the most disadvantaged.
He stated that “the last thing we want them to do” is to give money to firms that don’t truly need it because the government must concentrate its “extremely limited resources on the individuals who will need assistance the most during the oncoming recession.
“Those are the individuals who will be cold and hungry, not the businessmen seeking a tax reduction,” he explained.
Lord Wolfson is widely regarded as one of the most astute business minds in the United Kingdom, and while he acknowledged that next year will be difficult, he noted that there were reasons for optimism.
Contrary to the recessions of the early 1980s and 1990s, when entire industries and regions lost employment prospects, very few workers would be unemployed.
It is extremely improbable that people won’t be able to find employment, he said.
Second, he stated that the quoted costs for future raw materials at the end of the following year already indicate that a robust recovery from the recession might occur in 2024.
“The fascinating aspect of a supply-side recession is that the seeds of reversal are immediately assured. Consequently, as demand decreases and factories begin to empty, prices begin to fall,” he explained.
“Next year will be difficult, but a national mental breakdown is not necessary,” he concluded.
