This week has seen a significant moment in the evolution of the UK’s border policy with the release of the Government’s Restoring Control Over the Immigration System white paper.
Ministers identified nine core areas in the system for reform. Many are likely to require changes to primary legislation, delaying implementation until 2026. Businesses and other organisations, particularly those involved in research and enterprise sector, may be concerned about some aspects of the policy. To address those concerns, Prime Minister Sir Keir Starmer made clear that industries viewed as core the Government’s economic growth mission will receive support.
A notable change is the reintroduction of higher skills thresholds for work visas, which will now require applicants to have degree-level qualifications. This aims to reduce the number of lower-skilled visas issued and ensure that migration supports economic growth by attracting top talent.
A plan to end all overseas recruitment of care workers made the headlines. Current figures indicate that a third (32%) of all workers in the care sector are migrants. The Government faces challenges in delivering this target. The Social Care Commission is to set out reforms to the sector that are not due completed until 2028. Starmer is under pressure politically to reduce the number of foreign-born, low-skilled workers. His government is hoping that achieving this in the social care sector will clearly indicate success in reducing overall migration numbers. Yet the delays to the Social Care Commission reforms mean workforce planning for the sector will not be completed until 2028, with visa extensions due to continue until then.
Universities and those in the research and development sector have expressed concern that the planned changes to reduce the length of post-study work on the Graduate Route will make the UK less competitive internationally. They also fear that a potential levy on international student income, which universities rely on, could damage their finances.
Ministers insist that reducing migration should not hamper the UK’s growth mission. The Prime Minister announced that, as part of the Government’s growth agenda, a fast-track route has been announced for nurses, engineers, AI experts and others who “genuinely contribute to Britain’s growth and society”.
The backdrop to this white paper is chronic underinvestment in training the UK workforce. Long-term failure to invest in skills development has contributed to poor levels of productivity and hindered economic growth. The Government is working to tackle this through the immigration white paper and the establishment of Skills England, aimed at driving improvements in skills provision needed to meet demand. Skills England is working to unify the skills landscape across the UK, including working with devolved governments to better ensure the workforce is equipped with the skills needed to power economic growth. Labour is seeking to link the skills gap in the UK work force and reforms to the immigration system.
The Government says labour market policy and the immigration system have not been sufficiently considered in the round for many years, resulting in reduced investment in skills, rising inactivity of the domestic labour market, poor future workforce planning and high levels of recruitment from abroad.
The white paper acknowledges that migration patterns are different across UK nations, and that policy to reduce overall migration must be done in conjunction with devolved authorities. Scotland’s First Minister John Swinney expressed concerns that the white paper plans will “damage [Scotland’s] economy, the NHS, social care and universities” and that the measures ignore the “need to boost Scotland’s working age population”.
With the Welsh Senedd and Scottish Holyrood elections fast approaching in May 2026 and polls continuing to indicate increasing support for Reform UK at Labour’s expense, the Prime Minister is seeking to demonstrate that delivering on his manifesto promise to reduce migration levels will increase the Labour vote share across the nations and regions.
For businesses, the reforms laid out in the white paper present challenges and opportunities. Stricter immigration controls may limit the availability of lower-skilled workers, which could impact industries that rely heavily on such labour, including hospitality, agriculture, and construction. Companies in these sectors will need to adapt by investing in domestic training programmes and developing strategies to attract and retain British workers. Employers will be expected to boost domestic talent and skills if they want to recruit from abroad. Ministers are committed to exploring new options to incentivise and invest in training and restrict employers who are not committed to increasing skills or following the workforce strategy from sponsoring skilled visas.
For those industries laid out in the Industrial Strategy last October as “growth-driving” sectors, particularly those in digital and tech and green energy, opportunities arise from fast-tracked visa programmes to ensure top talent works and thrives in the UK. With planned reforms likely to be delayed until 2026, there is a clear opportunity for businesses in the tech and green energy spaces to align themselves as strategic partners with the Government and shape what the details of the fast-track visa may look like.
