LONDON (Reuters) – Costs for hiring bankers, accountants and legal professionals from outdoors Britain will soar after Brexit and threaten London’s standing as a global monetary centre until the immigration system is urgently reformed, a report stated on Monday.
The report from TheCityUK, which promotes Britain as a monetary centre, and consultancy EY, stated that attracting and retaining the most effective folks is a prime precedence.
“Losing this could undermine Britain’s position as the world’s leading financial centre,” TheCityUK’s Chief Executive, Miles Celic, stated in an announcement.
The monetary sector is fast to remind the government that it’s Britain’s largest financial sector, elevating greater than 70 billion kilos yearly in taxes.
But different sectors like well being and agriculture are additionally calling for unhindered entry to worldwide hires after Brexit.
Across Britain 7.5 p.c of banking and associated skilled workers are European residents and four.7 p.c are from non-European international locations, rising to 16.9 p.c and 11.four p.c, respectively, in London the place one in 4 workers within the sector are non-UK residents.
Banks, insurers, asset managers, and the legal professionals and accountants that help them, can at the moment rent from throughout EU states with out visas, however should use the “Tier 2” work visa system for residents from outdoors the bloc.
If Britain fails to safe a bilateral settlement with the EU on the motion of individuals, the sector will have to make use of the Tier 2 system for all non-British hires.
Applications for sure classes of Tier 2 visas are routinely oversubscribed and rejected as a consequence of caps on numbers, the report stated.
The ensuing improve in visa purposes, mixed with deliberate hikes in visa utility charges, would end in a 300 p.c rise in prices for hiring worldwide workers, the report stated.
“Simply applying the current immigration system for non-European citizens to European citizens after Brexit will not work,” Celic stated.
Britain may undertake a few of the report’s suggestions unilaterally.
It requires the British government to make the Tier 2 system extra “dynamic” by introducing a “shortage occupation list” that displays precise shortages being confronted, together with digital and cyber safety abilities.
As reported by Reuters, the report requires a brand new short-term immigration class to permit worldwide workers to work in Britain for as much as six months without having to use for a visa first, much like a system already utilized in Canada.
Banks and insurers are already beginning to shift some workers and operations to the EU to be assured of serving buyer there after Britain’s departure from the EU subsequent March.
Reporting by Huw Jones, enhancing by Louise Heavens