UK to overhaul visa system to attract top AI and science talent, says Reeves

Rachel Reeves has pledged a root-and-branch review of the UK’s immigration framework, including potential visa routes for highly skilled workers in AI and life sciences, as part of a wider drive to boost economic growth.

The chancellor has revealed that a white paper will be published later this year, which will announce the Government’s vision for “Britain to be open for business and open for talent”.

Speaking at a morning event during the World Economic Forum in Davos, Reeves said: “We will also be looking at highly skilled people’s routes, visas especially in the areas of AI and life sciences. Britain is open for business, we are open for talent, we have the best universities, the best entrepreneurs in the world, but we also want to bring in global talent.”

Although Labor has long emphasized the need to reduce overall immigration, Reeves has clearly shown a desire to reassure international firms and investors that the UK remains an attractive destination for skilled professionals. Ministers intend to discuss with businesses how best to reform the current visa system, including empowering British diplomats overseas to promote the UK as an attractive place to live and work.

Asked if he was comfortable with the creation of wealth as Tony Blair’s government once said, Reeves replied emphatically: “Absolutely.” He and Jonathan Reynolds, the business secretary, spent the conference stressing the Government’s “pro-growth” policies, insisting that key infrastructure projects such as airport expansion should not be blocked by concentrated local opposition.

Reeves was also pressed on the possible approval of Heathrow’s third runway. He avoided direct confirmation but stressed that the answer to major national projects “cannot be no”. His position suggests a willingness to fund major developments to boost growth, reflecting concerns that delays in major infrastructure projects have hampered the economy.

The chancellor has confirmed that Marcus Bokkerink left suddenly as chairman of the Competition and Markets Authority in connection with the minister’s requests that regulators support rapid economic growth. Bokkerink will be succeeded by Doug Gurr, the former head of Amazon UK, after officials raised concerns that the CMA’s approach was stifling growth opportunities in key sectors, including technology and financial services.

“Growth is our number one priority,” Reeves explained. “We want our administrators to be part of that goal… He [Bokkerink] he realized that it is time for him to move forward for someone who has the same goal and strategic approach taken by this Government.”

Commenting on the proposed visa changes, Karendeep Kaur, Legal Director at immigration law firm Migrate UK, welcomed the opportunity for direct routes for businesses that rely on special skills. However, he cautioned that many firms remain wary of onerous sponsor licensing obligations and increased visa-related costs.

“For this to be successful, businesses will need to be assured that acquiring exceptional talent will exceed the demands placed on them as sponsor licensees,” said Kaur. “From 31 December 2024 the UKVI announced that businesses will have their licenses revoked immediately if they are found to be ‘paying back’ certain costs associated with funding. … Increased compliance pressure may deter businesses from applying for a sponsor’s license.”

Kaur also highlighted upcoming visa fee increases, including a proposal to increase the certificate of sponsorship fee from £239 to £525. When combined with the cost of sponsor licences, skills fees, and the added health costs of immigration – particularly for family members – the cost to employers and employees can easily rise to tens of thousands of pounds.

“While it may be tempting to work and live in the UK,” he added, “there is a need for the government to reduce immigration.” That puts them in a critical position as to how easy these routes can be.”

Despite these concerns, the Treasury intends to emphasize the UK’s strong importance of world-class universities, thriving businesses and the “growth” agenda, in the hope that an improved visa strategy will help address post-pandemic challenges and strengthen the country’s position as a global innovator. harp.