Cable Voices Concern That Immigration Cap is Causing Economic Harm



Vince Cable believes the immigration cap is hurting economic recovery.

Vince Cable believes the immigration cap is hurting economic recovery.

Vince Cable has voiced once again his opinion of the controversial cap on immigration. He believes the attempt to limit immigrant workers may very well keep key specialized workers from settling in the UK. His statements added attention to the political move prior to this weekend’s Liberal Democrat Conference.

European Union Law prevents the UK from capping migrants from other European countries. The UK can cap those from beyond Europe seeking to settle in the UK. Government seeks to keep reducing the number of immigrants each consecutive year and the quota was put into place in July of this year.

Cable said: “The fact is that the way the system is currently being applied is very damaging.

“We have now lots of case studies of companies which are either not investing or just not able to function effectively because they cannot get key staff – management, specialist engineers and so on – from outside the European Union.”

Downing Street was quick to respond. “I don’t think that there is evidence that it is doing huge damage to the UK economy,” the Prime Minister’s official spokesman said.

“There is a clear Coalition policy on this and that was established pretty much on day one.”

John Cridland, deputy director-general of the CBI, said: “The interim cap is causing serious problems for many firms. The figures used were artificially low as they were based on numbers at the height of the recession in 2009.

“As firms are gearing up for growth, some are finding that they are only able to use a handful of non-EU specialist staff.”

In some cases companies are moving their headquarters to other countries and pulling out of the UK due to the restrictions on immigration. The Law Society also has voiced concern of companies losing out on growth due to the cap, in which then the UK might lose out on the company’s move to somewhere else.

The Law Society’s Chief Executive, Desmond Hudson said: “Britain’s ability to remain internationally competitive is under threat and our business community is also feeling the pressure at a time when we need to revive the economy rather than hinder it.

“The UK could lose large volumes of legal transactional work to other jurisdictions if we are not allowed access to the best talent in strong and emerging economies, such as China and India, as well as our partners in the US and Australia, for example.”

Comments & Debate

  1. September 19, 2010 at 7:24 pm phill Commented:

    So either train British nationals or hire British workers.

    I know the UK population are not the most intelligent people in the world, but there must be a few capable. If not them train them.. We don’t want any more foreigners!!!!!!!!!!!!!!!!!

    I am now boycotting GE

  2. October 6, 2010 at 11:49 am Immigration Services Australia Commented:

    Nice informatics article, thanks a lot.

  3. November 13, 2010 at 12:39 pm Rick Commented:

    Britain was responsible for nearly one third of the total population growth of the 27 countries in the EU in 2009. Germany’s population fell by 200,000. Why has Britain got worst budget deficit in the EU (12% GDP) and is recovering more slowly than any other major economy in Europe? And Germany is experiencing economic boom, has a deficit of 3% GDP and is the fastest growing economy in Europe. The politicians keep telling us how immigration is good for the economy, so why do we find ourselves in this position?

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