Investor News

24 September 2010

Automotive industry warns UK Visa cap could ‘undermine the UK’

The automotive industry has expressed concerns about the UK Visa cap and has warned the government that placing a cap on internal company transfers threatens to undermine the UK in the global economy.

Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders (SMMT), has written to the UK Immigration Minister Damian Green about concerns on the restriction on staff transfers within businesses.

Mr Everitt also asked for the exclusion of intra-company movement from the immigration cap.

"Industry is concerned that the inclusion of intra-company transfers could impact on the attractiveness of the UK as a location for inward investment and undermine the UK's role in an increasingly global economy," Mr Everitt said in a statement.

"Highly skilled employees transferred to work within the UK automotive industry are essential to maintaining and improving our global productivity and competitiveness."

The Home Office imposed a temporary limit on non-EU migrant workers of 24,100 from June 2010 to April 2011, when the permanent cap will be put in place. The interim limits apply to all new applicants under Tier 1 (General), except for extension applications and in-country applications. Applications under Tier 2 (General), which include intra-company transfers, are limited by the number of Employer Sponsorship Licences  that are issued.

Last week, the Business Secretary Vince Cable warned: "A lot of damage is being done to British industry."


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