UK Immigration: New Caps on Tier 1 and Tier 2 Visas

The Coalition Government's Immigration Stance

In the wake of the 2010 general election, the Conservative Party, led by David Cameron, formed a coalition government with the Liberal Democrats. Despite being the largest party in Parliament with 306 seats, the Conservatives lacked a clear majority, leading to a partnership with the Liberal Democrats, who secured key cabinet positions, including Nick Clegg as Deputy Prime Minister.

Immigration Policy Reforms

The new Home Secretary, Theresa May, announced a series of immigration policy reforms, including:

• Economic Migrant Cap: A yearly limit on economic migrants from outside the EU.
• Emergency Budget: A commitment to reduce the UK's budget deficit, which stood at approximately £160 billion, by implementing a £6 billion annual spending cut.
• Tax Allowance Increase: A rise in income tax allowances for the lowest-paid workers from April 2011, aimed at reducing the tax burden on the poor.
• Education Investment: Additional funding to decrease class sizes for children from disadvantaged backgrounds.
• Voting System Referendum: A proposed referendum on adopting the Alternative Vote system for general elections.
• Fixed-Term Parliaments: The establishment of fixed-term parliaments, with the next election scheduled for May 2015.
• NHS Funding: An increase in National Health Service (NHS) spending each year of the new parliament.
• ID Card Abolition: The elimination of ID cards, including for immigrants, to reduce administrative burdens.
• Public Sector Pension Review: An examination of the long-term affordability of public sector pensions.
• State Pension Reform: The restoration of the link between the state pension and earnings from April 2011.
• Aviation Tax Changes: Replacement of the aviation passenger duty with a per-plane duty.
• Airport Expansion Halt: A decision to not build additional runways at Heathrow, Gatwick, or Stansted airports due to environmental concerns.

Impact on Tier 1 and Tier 2 Visa Applicants

The new immigration cap is expected to make it more challenging for individuals to enter the UK under the Tier 1 and Tier 2 visa schemes, which are the primary categories for economic migrants. The exact number of economic migrants to be allowed has not been decided, pending a consultation process.

Criticism and Concerns

The Institute for Public Policy Research (IPPR), a centre-left think tank, has previously criticized the idea of an immigration cap as ineffective. They argue that such restrictions could lead to skills shortages in the UK economy. Sarah Mulley, author of the IPPR report "The Limits to Limits," expressed concerns that the cap could prevent Premiership football clubs from hiring top foreign players and hinder British companies from recruiting essential high-level professionals from abroad.

Conclusion

The UK's new government cap on economic immigrants will likely make the Tier 1 and Tier 2 visa schemes more competitive and restrictive. Prospective applicants who meet the requirements for these visas are advised to apply sooner rather than later, before the implementation of the immigration cap.

For more detailed information on UK immigration policies and visa requirements, you can visit the official UK government website on immigration here.

For insights into the economic implications of immigration caps, the IPPR's reports and publications can be found here.