The Conservatives new plan to tighten immigration laws could have exponential backlash on the UK economy, with welfare, hospitality and construction sectors being hit the hardest. The new guidelines set out to scrap the limit on foreign workers and replace it with a skill-based system, with a £30,000 salary threshold for workers. The new law would see the removal of any special treatment for EU immigrants and focus solely on worker’s skill set for labour.
The proposed law is meant to decrease the number of migrants coming to the U.K. Anti-immigration rhetoric associates said migrants with cheap labour and with driving down wages, with little or no regard for the lack of political impetus to stimulate wage growth. Nevertheless, the impacts on crucial work sectors in the UK seems to have bypassed the minds of the Conservatives as they set their aims on lower immigration figures to appease the racist’s in their parties and surrender economic growth in attempt to achieve it.
A salary threshold of £30,000 would rule out the possibility of foreign worker’s in a number of roles in vital sectors of the market, this knock-on effect could see
City Hall has released figures on foreign employees earning less than the projected threshold that would be eliminated from these roles if the law came into play. An estimated 46,000 construction and 61,000 hospitality positions are held by EEA workers a year, along with 20,276 nurses and health advisors from the NHS. The short and long term effects on the economy if the Conservatives force this sheer drop in labour, particularly in regard to already struggling sectors, could lunge the UK into crisis.
This is a cynical attempt on the Tories part to bring further marketisation into sectors where previous attempts have failed. By introducing such a system, the private sector would be circling like sharks to gain Health contracts at the NHS’s expense. Where labour shortages exist, services would be outsourced, a deeply flawed plan, driven by ideology and bitter contempt for the welfare state.
Many public bodies have spoken out against the government’s plans and raised concerns that the threshold needs to be scrapped or readjusted to better fit the British market. Mayor of London, Sadiq Khan, has discussed fears for the capital due to its dependency on low-wage foreign workers and the consequences the new law could have on London’s economy and the already suffering public services.
The chairman of the FSS (Federation of Small Businesses) Mike Cherry disclosed worries on the potential impact on small businesses due 70% of their workforce being reliant on low-skilled workers. The high volume of labours that would be removed from these positions could see many small businesses not only begin to fail but collapse altogether having a further negative impact on the market.
The newly proposed law put forward by the government ignores the fact foreign workers are an integral pillar in supporting the British economy, it fails to take into account the detrimental impact it could have on corporations and small businesses nationwide.