Labour is looking to prevent UK firms from sponsoring visas for overseas workers, if they choose to disobey the party’s plans for training British workers. Labour announced that they will reduce the need for foreign workers by improving training for the IT, engineering, health and social care and construction sectors. Companies that resist would find it more difficult to hire foreign workers if the sector does not take sufficient steps toward workforce training. Labour’s initial four sectors would each have a workforce plan to enable this upskilling with each detailing how companies should best carry out training and reduce their dependence on foreign workers.
If a sector or specific company fails to engage with the training plan, jobs would be removed from the shortage occupation list. Those on this list are able to apply for a skilled worker visa to work in the UK. Companies affected would then be required to recruit within the UK. A Labour party source confirmed that the plan would be flexible, indicating opt-ins for successful companies if wider sectors are penalised.
Business leaders have expressed their concerns. Graham Watts, chief executive of the Construction Industry Council, said that the plan would “stifle economic growth” if arbitrary measures were put in place before these new workforce plans had time to develop. He remarked that it would take time for training to generate growth and offer mitigation for any shortfall. Martin Green, chief executive of Care England, said he welcomed the larger plan to increase training but called for an independent body to oversee ministerial decisions on sanctions.
The Migration Advisory Committee, an independent body that advises on policy, will also advise on these plans, according to a Labour party source. Labour has been seeking support from the business community in the lead up to the election. Earlier this month, Shadow Chancellor Rachel Reeves held meetings with City leaders, culminating in a letter from over 120 business figures endorsing the party. However, these plans have not previously been mentioned.
The Conservative party has also made promises to reduce the number of visas for migrant workers if they are re-elected, and MPs would receive a vote on an annual migration cap based on recommendations made by the Migration Advisory Committee
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