Page 24 - Regional Employment & Skills Plan_2019__WEB

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Immigration and Free Movement
The Immigration White Paper sets out the most significant changes to immigration legislation for decades. The most significant change is the proposal to add EU citizens directly into the current points-based system under what is known as ‘Tier 2 for skilled workers with job offers’. In addition, the proposal also states:
• Remove the current cap on Tier 2 visas and abolish the requirement for employers of skilled workers to carry out a resident labour market test;
• Add medium skilled workers into Tier 2;
• Hold a consultation on the £30,000 minimum earning threshold for Tier 2 visas;
• Provide no specific route for lower-skilled workers with a proposal to add a transitional measure allowing
lower-skilled workers to work in the UK for 12 months, with a further 12-month cooling-off period; and
• Allow no regional variations within the immigration policy for different parts of the UK.21
The proposals could potentially have significant effects on those sectors who are highly reliant on a migrant workforce, especially those reliant on a lower skilled migrant workforce. It is therefore crucial that Welsh Government understand the potential effects of this change on areas in Wales and as a result request regional variations to those proposed changes in the new system.
Providers
Brexit is potentially very concerning for businesses operating across Wales. Primary research gathered by the RLSP indicates that few businesses wholly feel that Brexit will be a positive change for them. The majority of respondents indicated that increased costs was a main consideration, followed by exporting/importing difficulties and funding.
Brexit is of course more of a concern for some sectors more than others, the Food and Land-based, Manufacturing, Leisure & Tourism and Health and Social Care sectors are expected to be significantly affected.
The region has already suffered the effects of these uncertain political and economic conditions whereby two major manufacturing companies have or plan to make significant redundancies. It is imperative that the RLSP and its wider partners are able to effectively respond to these significant labour market shifts through having the flexibility to revise skills provision to meet the needs of both the workforces affected as well as the supply chains.
On questioning, the Financial and Professional, ICT and Education sectors showed little concern. Detailed information on a sector basis can be seen in the individual sector profiles.
Immigration and Free Movement
The effects of Brexit for providers will perhaps be most felt by higher education institutions. First and foremost the potential loss of funding could be incredibly detrimental for Universities, affecting their ability to undertake world-class research, make much needed significant investments or undertake elements of their wider civic mission. In addition, Brexit could impede their ability to recruit staff and students which underpins their very existence and it could damage international academic relationships that have been built over a number of years.22
21 https://41ydvd1cuyvlonsm03mpf21pub-wpengine.netdna-ssl.com/wp-content/uploads/2019/01/ Discussion-paper-FINAL-Jan-2019.pdf
22 https://41ydvd1cuyvlonsm03mpf21pub-wpengine.netdna-ssl.com/wp-content/uploads/2018/09/ After-Brexit-HE-report-final-with-covers.pdf
Regional Employment & Skills Plan South West & Mid Wales
Policy Context