Three leading Cumbrian trade bodies representing thousands of local businesses are calling on the Government to rethink its proposed changes to the immigration system, raising concerns it will exacerbate the county’s current workforce crisis.
Cumbria Tourism, Cumbria Chamber of Commerce and the FSB (Federation of Small Businesses) say they have been inundated with concerns from businesses which fear the plans will further shrink an already depleted talent pool and make current labour shortages in hospitality, manufacturing and other key sectors even worse.
Among the proposals is a plan to raise the minimum annual salary needed to get a skilled worker visa from £26,200 to £38,700, significantly above the average salary both in Cumbria and nationally.
It is feared the move will force many businesses to reduce – and even close – their operations, impacting negatively on both the Cumbrian economy and local communities.
The three organisations have penned a joint letter to the Home Secretary, highlighting Cumbria’s unique circumstances. The letter cites Cumbria’s small and super-ageing population combined with a high demand for workers – not least in the tourism and hospitality industry, which accounts for 26 per cent of all jobs in the county – resulting in localised recruitment challenges which the Government has failed to recognise.
Cumbria Tourism, Cumbria Chamber of Commerce and the FSB are also carrying out a joint survey of businesses to get more formal first-hand feedback about the potentially devastating impact the plans will have on them.
Keswick’s Gary Lovatt, area lead for Cumbria Federation of Small Businesses, said: “This change puts further pressure on the delicate position of numerous tourism businesses in and around Keswick.
“It will also have a compounding effect on the supply chain and associated businesses around the sector. This is not the time for such a restriction and I hope the Government will review this quickly. I welcome the minister to visit us to see for themselves the position.”
“As trade bodies we call upon the Government to urgently withdraw this proposal and we invite the minister to visit Cumbria to meet with businesses to understand the consequences for business and the economy were these proposals to be actioned.”
Gill Haigh. managing director of Cumbria Tourism, said: “Across Cumbria’s tourism and hospitality sector alone, 12 per cent of roles are vacant and 79 per cent of businesses are struggling with recruitment. Businesses are already unable to fill jobs with local people and are now facing the terrifying prospect of having to further cut back their operations – or even close their doors – because they can’t turn to overseas workers to help them operate on a day-to-day basis.
“It is doubly frustrating as we have previously led delegations of hospitality businesses to meet face-to-face with immigration ministers, but our calls for new, creative measures to help recruit and retain staff continue to fall on deaf ears. We really do need the Government to reconsider these plans and will be doing everything we can to open their eyes to the full consequences of this flawed policy.”
Suzanne Caldwell, managing director of Cumbria Chamber of Commerce, said: “Raising the minimum salary for legal migrants, for example, from £26,200 to £38,700, takes it way beyond average wages, both in Cumbria and nationally. We fail to understand the justification for this change, which takes the salary banding way beyond many roles which are by no means low paid.
“The employers we are working with are not exploitative employers bringing in foreign staff, paying them less and keeping British workers out of jobs. What we are talking about here is about good employers, who value their staff, being unable to recruit and retain enough people to deliver the goods, services and growth we need as a county and as a country. In fact, the contribution by the employer and employee in the case of a legal migrant worker is higher than a British employee.”
Last week Cumbrian MP Tim Farron described the new visa rules as a “hammer blow” to local businesses in the county’s hospitality sector.
Speaking during a statement in the House of Commons, Mr Farron said: “These proposals or some of them at least will be met with absolute horror in the Lake District hospitality and tourism industry.
“Twenty million people visit our communities every year, a three and a half billion pound industry and because of the failure of this Government to provide sufficient, affordable homes for local people and to have stupid visa rules, we now have a massive workforce crisis.
“Two thirds of our businesses are unable to meet the demand that they have because of inadequate numbers of workers.
“Has he spoken to anybody working and managing in the Lakes hospitality industry or does he not care what they think?”
Responding, Home Secretary James Cleverly said: “My right honourable friend the Immigration Minister met with the Lake District Tourist Board.
“So in specific answer to his question. Yes, he has spoken to them.
“And the point is and the simple truth of the matter is we have analysed the figures, we know which sectors have brought in the most people, the hospitality sector is an incredibly important sector in the UK, a fantastic employer of local people.
“That’s what we want to see in that sector.”
Speaking afterwards, Mr Farron, who represents the Westmorland and Lonsdale constituency which will include Threlkeld at the next general election, said: “If the Immigration Minister has spoken to our hospitality industry then he clearly wasn’t listening!
“These rules will serve as a hammer blow to local businesses who are already struggling to recruit the staff they need to operate.”
