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UK should lower planned salary threshold for migrants: Report  

SKILLED workers coming to Britain should earn at least £25,600 a year, lowering the existing threshold, a government-commissioned report said on Tuesday (28) while warning the planned overhaul of the immigration system could hit economic growth.

With Britain leaving the European Union on Friday (29), the government is introducing the biggest shake-up of Britain’s border controls in decades, ending the priority given to migrants from the bloc over those from other countries.


The Migration Advisory Committee, an independent body which gives the government advice, recommended lowering a minimum general salary threshold for skilled migrants to £25,600 ($33,648) a year from £30,000.

"Our recommendations are likely to reduce future growth of the UK population and economy compared to freedom of movement, by using skill and salary thresholds," the MAC chairman Alan Manning said in a statement.

"No perfect system exists and there are unavoidable difficult trade-offs."

The MAC said if the government wanted to bring in a points-based system, then it should also allow a route for skilled workers who did not have a job offer.

Teachers and healthcare workers should benefit from lower salary thresholds based on national pay scales, the report said.

Manning said the proposals would lead to a very small increase in GDP per capita and productivity, and slightly improved public finances.

But, while demands on the state-run health service, schools and housing would slightly ease, there would be increased pressures on social care which relies on lower-paid employees.

The report recommended the government makes decisions soon on Britain’s immigration system to allow companies enough time to prepare for its introduction in January 2021.

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London tourist levy

The capital recorded 89 m overnight stays in 2024

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London to introduce tourist levy that could raise £240 million a year

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Highlights

  • Government expected to give London powers to bring in a tourist levy on overnight stays.
  • GLA study says a £1 fee could raise £91m, a 5 per cent charge could generate £240m annually.
  • Research suggests London would not see a major fall in visitor numbers if levy introduced.
The mayor of London has welcomed reports that he will soon be allowed to introduce a tourist levy on overnight visitors, with new analysis outlining how a charge could work in the capital.
Early estimates suggest a London levy could raise as much as £240 m every year. The capital recorded 89 m overnight stays in 2024.

Chancellor Rachel Reeves is expected to give Sadiq Khan and other English city leaders the power to impose such a levy through the upcoming English Devolution and Community Empowerment Bill. London currently cannot set its own tourist tax, making England the only G7 nation where national government blocks local authorities from doing so.

A spokesperson for the mayor said City Hall supported the idea in principle, adding “The Mayor has been clear that a modest tourist levy, similar to other international cities, would boost our economy, deliver growth and help cement London’s reputation as a global tourism and business destination.”

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