The Business Secretary Vince Cable has expressed concern over the interim immigration cap, arguing that it is doing ‘huge damage’ to the economy, Workpermit.com reports.
Although he indicated he would support the Government’s permanent cap on immigration, due to come into force in April 2011, he stated that it needs to be more flexible and vary according to the economic situation. He argues that the UK’s competitiveness will be seriously damaged if companies continue to move jobs overseas as a result of the difficulty in obtaining tier 2 visas and highly skilled tier 1 visas for workers from abroad. The Business Secretary used two investment banks in the City, both of which hire hundreds of Indian and American workers, as examples of companies that had already moved some operations to Hong Kong.
Boris Johnson, the Mayor of London, was also quoted on the website, commenting on the cap. He stated that 'Firms actually find it very, very difficult at the moment to get in some of the people who you really need to keep London's economy going'.