What the UK government’s plans to curb overseas hiring mean for the tech and engineering sectors 

The UK government’s recent announcement on potential plans to restrict hiring from abroad in key sectors such as tech and engineering has sparked significant concern among those operating in these sectors. As the Home Secretary, Yvette Cooper, commissions the Migration Advisory Committee (MAC) to explore the UK’s reliance on overseas talent, the prospect of tighter visa regulations raises critical questions about the future of innovation and economic growth in the UK. 

Emphasising that the proposed changes could have far-reaching impact, Senior Business Immigration Solicitor, Fozia Iqbal, says:   

Any plans to further tighten visa regulations to curb overseas hiring will inevitably present significant challenges for employers in the tech sectors. This change could force companies to relocate roles overseas, leading to a major loss in jobs, tax revenue, and the UK’s global standing as a hub for innovation.

The impact on businesses could be significant, especially in the short-term. These changes could mean that companies may face longer hiring times, higher recruitment costs, and increased salaries as they compete for a reduced talent pool. This is particularly concerning for smaller businesses and start-ups, which could find it increasingly difficult to attract the expertise they need to drive growth.  

Fozia adds: 

Depending on how and when any changes are enforced, this could lead to operational disruption, project delays, and an increase in workloads for existing employees.

In the broader context, the restrictions could be a step back for innovation in the UK’s tech sector, which has been a crucial driver of economic growth.  

Fozia notes: 

This change could make it more difficult to fill critical roles, resulting in a negative impact on the UK’s economic growth. Tech is one of the crucial drivers for the economic development of the UK, and a restriction in access to essential talent may be perceived as hindering this innovation and the UK’s ability to stay competitive in a global market.

As for alternatives to traditional work visas open to businesses, options are somewhat limited but still worth considering where relevant. Fozia says: 

There is the Global Talent visa for exceptional and promising individuals who are leaders or have the potential to be future leaders in their fields. Additionally, the Scale-up Worker visa is available for fast-growing companies, which may be particularly relevant to the tech industry.

Other options include Youth Mobility schemes, such as the India Young Professional Scheme, though these are limited in scope and duration. For entry-level talent, there are Graduate visas and High Potential Individual visas, but it’s important to note that these are short-term solutions. 

As we await the outcome of the MAC’s review and the government considers these changes, it is essential for businesses and employers to stay informed and proactively consider how these potential changes could impact their future growth and hiring strategies to avoid being caught out.