Under his leadership, the government would be “pragmatic” about skills and labor shortages and would not overlook the necessity for immigration, according to the leader of the Labour Party.
Sir Keir Starmer has stated that the British economy must be freed of its “dependence on immigration.”
This morning, the Labor leader delivered the keynote address at the annual conference of the Confederation of British Industry (CBI), urging firms to “spend more in training up existing workers.”
And he warned business leaders that “the days of low wages and cheap labor being part of the British growth model must cease.
However, he stressed that he would be “pragmatic” about the skills and labor shortages perceived by businesses and that he would improve the existing points-based immigration system that was implemented after Brexit.
When asked if he wished to reduce immigration, Sir Keir refused to commit to “arbitrary” numbers.
“[If] one of the major factors is a lack of skills, then I believe it is more important to solve the skills issue than to discuss arbitrary figures,” he stated.
“That does mean that if we get this right, immigration will decrease in some of those areas that are unduly reliant on immigration, but we won’t hold firms back if there are innovations or technology for which we need foreign people.”
Tony Danker, chief executive officer of the Confederation of British Industry, urged the government to use immigration to address labor shortages in the United Kingdom, stating that the government must be “realistic” on the subject.
Brexit has made it difficult for many foreign workers to work in the United Kingdom, and businesses are finding it difficult to recruit, particularly in areas such as hospitality that have relied significantly on European labor in recent years.
Despite four quarterly declines this year, total job openings remain elevated at nearly 1.2 million.
Mr. Danker told the conference that the United Kingdom faced “huge” labor shortages, adding, “It’s time, to be honest – we don’t have the people we need, not the productivity.”
However, in a speech to the CBI on Monday, Prime Minister Rishi Sunak stated that the United Kingdom has “one of the world’s most attractive visa regimes for entrepreneurs and highly-skilled people,” adding, “The country’s top migration priority right now is combating unlawful migration.”
Sir Keir stated in Birmingham that his party was pro-business and desired to collaborate for a “fairer, greener, and more dynamic Britain” in which “aspiration is rewarded.”
To distinguish himself from his predecessor, Jeremy Corbyn, he addressed delegates, “This is a new Labour Party, and there is no turning back.” We are prepared for collaboration.
In what appeared to be a direct response to Mr. Danker’s comments, he added that a future Labour government led by him would be “pragmatic” regarding staff shortages, but would seek something in return.
Sir Keir stated, “We will not overlook the need for workers to enter this nation.” “As was the case with HGV drivers, we cannot allow transient labor shortages to imperil major sectors of our economy. That would be anti-business and anti-growth.
“However, I want to be clear. Any change to our points-based immigration system, whether via the skilled worker route or the shortage occupations list, will be accompanied by new business conditions under my Labour administration.
“We will expect you to present a clear plan to increase skills and training, to improve pay and working conditions, and to invest in new technology.”
The leader of the Labour Party stated that he was amenable to conversations regarding the optimal approach, but emphasized that trade unions “must be an integral component of our collaboration.”
“Our joint goal must be to help wean the British economy off its reliance on immigration so that it can begin investing more in educating existing employees,” he said.
“Let me tell you, the days of low wages and cheap labor being part of the British growth model must cease.”
Sir Keir was also pressed on his Brexit stance in light of rumors that the government may pursue a closer “Swiss-style” relationship with the EU, something Number 10 vehemently denies.
The Sunday Times reported over the weekend that some government officials were considering pursuing a new deal with the EU similar to Switzerland’s to improve economic ties, particularly in light of recent market turmoil that has harmed the British economy and the ongoing issues with the Northern Ireland protocol.
This deal grants the Swiss selective access to the single market and eliminates inspections on a variety of commodities, but requires them to participate in Schengen and contribute to the bloc’s finances.
The head of the Labour Party stated that the existing agreement with the EU was “not functioning well,” but emphasized that his party’s position was not about rejoining, but rather “making Brexit work.”
“I believe what has occurred thus far has been a government that simply said ‘get Brexit done and implemented a deal that I believe the majority of people in this room would agree is not working well for business, exports, or growth,” he said.
“I do believe a better Brexit is possible. I believe we must make Brexit work.”
In his statement at the CBI conference on Monday, Rishi Sunak reaffirmed his commitment to Brexit, stating unequivocally that he would not return to any compliance with EU regulations.
He said, “I voted for Brexit, I believe in Brexit, and I know that Brexit can and is giving huge benefits and opportunities to the UK.
