London Daily

Focus on the big picture.
Thursday, Feb 26, 2026

Ministers clash with business leaders over calls to open borders

Ministers clash with business leaders over calls to open borders

Clash with ministers over demands to relax immigration rules to ease jobs crisis
Ministers have clashed with business leaders over calls to open Britain’s borders to more foreign workers to help plug crippling staff shortages.

Amid deepening economic gloom as the UK heads into recession, company bosses want the Government to relax its cap on immigration to boost growth and fill staffing gaps — particularly in the retail, hospitality and construction industries. But immigration minister Robert Jenrick slapped down those demands today and insisted that employers struggling to find staff should look to the “domestic workforce” if they are seeking “lower-skilled labour”.

“We want to bring down net migration,” the minister told TalkTV. “It’s something that is very important to the British people and we’re on the side of the British people.”

The row came as Prime Minister Rishi Sunak this morning set out his vision to grow the economy in a speech to the Confederation of British Industry in Birmingham. But his attempts to reassure business leaders after last week’s Autumn Statement set out plans to raise taxes by £25 billion were overshadowed by the immigration row.

Mr Sunak told the CBI conference he was “absolutely committed to using our new Brexit freedoms to create the most pro-innovation regulatory environment in the world in sectors like life sciences, financial services, AI and data”. He added: “I want to build a better country where we get inflation down and grow the economy, where we cut NHS waiting times and improve the quality of care and where we invest more in schools and give every child a world-class education and critical to achieving all this is innovation... we need to teach people the skills to become great innovators.”

Speaking on economic migration ahead of Mr Sunak’s speech, CBI boss Tony Danker told the BBC: “The reason why it’s so important is we have literally over a million vacancies in this country, we have 600,000 people who are now long-term unwell, who aren’t coming back to the labour market any time soon.

“That’s why we have to get this shortage occupation list — the list of people that we’re really missing that we aren’t going to get in Britain anytime soon — and we have to get them to plug the gap while we re-calibrate the labour market in the medium term. I’m afraid it’s one of those levers that does help you grow, doesn’t cost money, but I recognise it’s a tough political choice for Conservative politicians.”

Kate Nicholls, chief executive of UK Hospitality, said her industry has faced labour shortages of 10 per cent since last summer. She added: “Despite heavy investment in training and recruitment initiatives, the outlook has not improved and vacancy rates remain at record levels across the economy as a whole, suggesting we need a new approach. For hospitality, the vacancies mean we cannot operate at full capacity with half of businesses cutting hours, closing on certain days and reducing capacity — that means we are turning away £25 billion in business and the Treasury is losing £7 billion in tax.”

A survey this summer by the British Chambers of Commerce found that more than 60 per cent of companies needed to find more staff in the UK — but more than three-quarters were struggling to hire. Russ Shaw, founder of Tech London Advocates, said: “We have campaigned to make immigration policy more accessible to skilled talent around the world. It would be a real benefit if we re-looked at that. We need a workforce that is equipped for a digital future and there is not enough home-grown skills to support that.”

He added that the skills shortage challenge was “enormous” with “over 100,000 tech vacancies across the UK”.

A poll, published today by the Heart of London Business Alliance, which represents 600 businesses and 100 leading property owners in central London, found that 95 per cent of respondents said that staff shortages were impacting business performance, with 82 per cent stating that this issue was “a big problem”.

Charlie Gilkes, founder of Inception Group, the operator behind bar and restaurant concepts like Mr Fogg’s, Cahoots and the new Control Room B at Battersea Power Station, said: “The hospitality industry has the potential to light a fire under the economic revival of central London, but we are not trading all the hours we would like to.

“It continues to be incredibly hard to find people who want to work in the sector. In past times, many people have come from Europe to London to work for two or three years, but that pool of workers has diminished since Brexit. We would like to employ more Brits but they aren’t applying in any great numbers.”

Brexiteer Next chief executive Lord Wolfson earlier this month urged the Government to make it easier to allow foreign workers into the UK because of the chronic labour shortages saying this is “not the Brexit I wanted”.

The Tory peer said in a BBC interview: “We have got people queueing up to come to this country to pick crops that are rotting in fields, to work in warehouses that otherwise wouldn’t be operable, and we’re not letting them in.”

The dispute with business leaders came amid a fresh storm over Brexit after weekend newspaper reports suggested the Government was considering negotiating a softer Swiss-style trading relationship with the EU. Switzerland and the EU have bilateral agreements giving the country direct access to parts of the EU’s internal market including the free movement of people.

But while Mr Jenrick said the UK did want to improve its trading relationship with the EU, it did not want to reopen the Brexit debate. “We had a big debate about that as a country, and we settled on one which I think was the right approach,” he said.

“We walked away from freedom of movement, which was not popular with the British public, we ensured that European judges no longer had jurisdiction in the British courts, and we ensured that we weren’t paying money to the EU. Those are the key tenants of our new relationship with the EU.”
Newsletter

Related Articles

0:00
0:00
Close
So, what's happened is, I think, government policy, not just under Labour, but under the Conservatives as well, has driven a lot of small landlords out of business.
Larry Summers, the former U.S. Treasury Secretary, is resigning from Harvard University as fallout continues over his ties to Jeffrey Epstein.
U.S. stocks ended higher on Wednesday, with the Dow gaining about six-tenths of a percent, the S&P 500 adding eight-tenths of a percent, and the tech-heavy Nasdaq climbing roughly one-and-a-quarter percent.
From fears of AI-fuelled unemployment to Big Tech's record investment, this is AI Weekly.
US Lawmakers Seek Briefing from UK Over Reported Encryption Order Directed at Apple
UK Business Secretary Calls on EU to Remove Trade Barriers Hindering Growth
Legal Pathways for Removing Prince Andrew from Britain’s Line of Succession Examined
PM Netanyahu welcome India PM Narendra Modi to Israel
Shadow Diplomacy: How Harry and Meghan’s Jordan Trip Undermines the Monarchy
Sir Jim Ratcliffe, co-owner of Manchester United, comments on immigration in the UK.
Bill Gates, the UN and the WEF are attempting to construct "a giant digital gulag for all of humanity" via digital ID, CBDCs and vaccine passport infrastructure.
Britain’s Channel Crisis: Paying Billions While the Boats Keep Coming
Downing Street’s Veteran Deception Scandal
UK HealthCare Expands ‘Food as Health’ Initiative Statewide to Tackle Chronic Illness in Kentucky
Leonardo Chief Says UK Set to Decide on New Medium Helicopter Programme
UK Slows Chagos Islands Agreement After Concerns Raised in Washington
European and UK Stock Markets Reach Fresh Highs as Banks and Miners Lead Rally
UK Government Insists Chagos Islands Negotiations Continue After Minister’s ‘Pause’ Remark
No Confirmed Deal for Engie to Acquire UK Power Networks Amid Market Speculation
UK Reaffirms Updated Entry Requirements for Travellers as of February 25, 2026
General Atlantic to sell equity stake in ByteDance, valuing the company at $550 billion
German Chancellor Friedrich Merz Secures Pledge from China for Greater Imports of Quality Goods
Lord Mandelson Condemns Arrest as Driven by ‘Baseless Suggestion’ He Would Flee Abroad
Former UK Ambassador Released on Bail Following Arrest in Epstein-Linked Investigation
UK Parliament Orders Release of Former Prince Andrew’s Government Vetting Files
Reddit Fined £14 Million by UK Regulator Over Failures in Age Verification Controls
UK Moves to Tighten Regulation of Netflix, Disney+ and Prime Video Under New Media Rules
British Woman Who Reported Rape in Hong Kong Faces Possible Prosecution
'Christianity is the religion that has made this country great.'
Man Receives Parking Ticket 38 Years After Offense: ‘City Officials Said It’s Legitimate’
Woman Receives Gift Card for Christmas – Discovers It Is ‘Worth’ 63,000,000,000,000,000 Pounds
UK Sanctions New Zealand Insurer Maritime Mutual Following Allegations Over Russian Oil Cover
Reform MP Danny Kruger Condemns UK’s ‘Unregulated Sexual Economy’ in Call for Tougher Controls
The Show Must Go On: Prince William and Kate Middleton Shine at the BAFTAs Amid Andrew’s Arrest
UK Sanctions Russian ‘Illicit Oil Traders’ After Email Blunder Exposes Sanctions Evasion Network
Russia Amplifies Baseless Claims That UK and France Plan to Arm Ukraine with Nuclear Weapons
UK Imposes Sanctions on Two Georgian Television Channels Over Alleged Russian Disinformation
United States National Parks See Noticeable Drop in Visitors from Canada, U.K. and Australia
UK, Australia, Canada and New Zealand Escalate Sanctions on Russia as Ukraine War Marks Four Years
I Gave Andrew a Nude Massage Inside Buckingham Palace
UK Economy Faces Acute Strain as Trump’s Global Tariff Reshapes Trade Landscape
UK Signals Retaliation Is Possible as New US Tariff Policy Threatens Trade Stability
British Police Arrest Former Ambassador Peter Mandelson in Epstein-Related Misconduct Probe
Australia Officially Supports Proposal to Remove Andrew Mountbatten-Windsor from Royal Succession
Victorian Premier Jacinta Allan remains silent on ISIS brides' resettlement plans in Melbourne
Former UK Ambassador Peter Mandelson Arrested in Connection with Jeffrey Epstein
Jacob Rees Mogg afraid to talk about Peter Mandelson arrest on “suspicion of misconduct in a public office” (Pedophilia, corruption, etc.)
United Nations Calls for Global Action Against Disinformation and Hate Speech Online
Tucker Carlson warns of an inevitable clash in Western societies over mass migration
President Trump warns countries against abandoning recent trade deals with the US
×