Government should scrap ‘arbitrary’ migration target and harmful visa cap, says think tank

The UK should scrap its "arbitrary" net migration target and harmful visa cap, a leading centre-right think tank has proposed.

A new report released today by the Institute of Economic Affairs calls the UK's approach to immigration policy "economically damaging" and "too restrictive" when applied to high-skilled workers.

The IEA said that as well as scrapping a target for net migration, the government should also remove caps on visas for the high-skilled and restrictions for working foreign students.

In the government's delayed immigration white paper, unveiled by home secretary Sajid Javid last month, there was no specific target set for net migration but the government has said it remains committed to reducing numbers to "sustainable levels".

The IEA said the migration of skilled workers, whom it called "highly productive economic and fiscal net contributors", was popular with the British public and that limiting their numbers amounted to "needless economic and political self-harm".

Currently foreign students' working hours are capped at a maximum of 20 hours per week during term time. 

Instead the IEA said the UK should adopt a two-lane system in which free movement with some countries is maintained but the rest of the world is subject to a uncapped version of the current system.

One "standard" lane would be based on the current system but with the cap abolished along with "costly bureaucratic requirements" and the resident labour market test, which forces employers to offer a position to residents first.

The "fast lane" would be based on the current system of free movement with the European Economic Area (EEA) but would not necessarily apply to the whole of the EEA and could be extended to non-EEA countries.

Author of the report, IEA ​head of political economy at Kristian Niemietz, said: “Our current immigration policy represents, in some ways, the worst of all worlds. It inflicts enormous economic self-harm, because it is needlessly restrictive and bureaucratic in some respects – but at the same time, it fails to genuinely address the public's concerns and anxieties.

“The main reason for this is that in debating immigration, we are not being honest with ourselves. A close look at the survey data shows that when people claim to oppose "immigration", it is really only specific types of immigration that they have in mind. They do not really care all that much about how many people come here. They care a lot more about who comes here, and why."

The government's white paper also opened the door for tens of thousands of low-skilled migrants to come to the UK to work for up to a year in a bid to protect parts of the economy.

It also set out plans to scrap the current cap on the number of skilled workers such as doctors or engineers from inside and outside the EU.

A Home Office spokesperson said: “We welcome the Institute for Economic Affairs’ support for the removal of caps on the number of skilled workers, as the new skills-based immigration system proposals set out.

“For the first time in a generation, we will have control of our immigration system, which will allow us to attract the talented workers we need, but everyone coming to the UK for work or study will need to get permission before doing so.

“As the home secretary emphasised when announcing, we are delivering on the referendum result by ending free movement and remain committed to reducing net migration to sustainable levels.”