London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

Top economist calls for 'lenient' migration rules

Top economist calls for 'lenient' migration rules

It "absolutely makes sense" to be lenient with migration rules when firms face staff shortages, the former chief economist of the Bank of England says.

Andy Haldane told the BBC the UK should be "liberal in our visa policies" to fill skills gaps, and that in turn would help to grow the economy.

It comes after the prime minister said legal migration was too high.

The Home Office said its system allowed in the skills needed while encouraging investment in the domestic workforce.

Mr Haldane's comments come ahead of new figures on net migration to the UK due to be published this Thursday.

While the prime minister has been facing pressure to deliver on a 2019 Conservative manifesto commitment to bring down levels of net migration, some businesses have warned it would damage their industries.

Sectors such as hospitality and retail have been among those facing labour shortages.

Mr Haldane, who sits on the chancellor's council of economic advisers, told BBC Radio 4's Today programme it was important to draw a distinction between "near term and medium term".

He added: "Given the huge shortages in both staff and skills being felt by businesses right across the UK right now - every sector and every region - it absolutely makes sense in the short run that we are lenient in our immigration rules, that we are liberal in our visa policies, in filling those skills gaps to enable the economy to grow, to enable businesses to flourish."

Last week, Prime Minister Rishi Sunak told the BBC legal migration to the UK was "too high" but refused to put a precise figure on acceptable levels of people coming to the UK.

He added he was "considering a range of options" to bring down legal migration.

And earlier in the week, Home Secretary Suella Braverman called for lower immigration, and suggested more British people should be trained to do jobs commonly done by overseas workers, such as lorry driving and fruit picking.

A Home Office spokesperson said: "The public rightly expects us to control immigration, which is why our points-based system delivers for the whole of the UK by prioritising the skills and talent the UK needs, whilst encouraging investment in the domestic workforce."


Industrial strategy


Mr Haldane also said the UK was still some way short of having a fully fledged industrial strategy.

"All around the world now, we see a set of countries engaging in very activist, big budget acts of industrial policy," he said.

"The UK still falls short I think in having such a well-articulated, big budget plan to enable us to compete in what is a global arms race to bring business home."

Mr Haldane added that the UK's strategy felt "quite responsive at the moment".

"Every week appears to bring another event, another impending loss of business," he said.

It comes after one of the world's biggest carmakers warned it may have to close UK factories if the government did not renegotiate the Brexit deal.

Stellantis, which owns Vauxhall, Peugeot, Citroen and Fiat, had committed to making electric cars in the UK, but now says that is under threat.

It warned it could face tariffs of 10% on exports to the EU due to rules on where parts are sourced from.

Mr Haldane said: "Whether it's EVs last week… that doesn't feel like a strategy - and businesses will tell you we're still some way short of having that plan in advance of these events tripping us up."

A Department for Trade spokesperson said: "The government has shown a clear strategy for UK manufacturing with a variety of schemes that ensure sectors from auto, to aerospace, to low-carbon technologies have access to the funding, talent and infrastructure they need.

"We are focusing on providing a competitive business environment to stimulate growth, reducing red-tape and investing millions in new government funding to help manufacturing SMEs increase productivity."

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×