STEM BUSINESS MODEL BENEFIT WITH NEW VISA ROUTE PLAN

The UK Chancellor announced plans for a new visa route designed to attract talent to UK Fintech and STEM businesses. Here we explain what this means.

How will this help companies attract global talent? 

The new rules announced by the Chancellor yesterday apply specifically to high-growth businesses in research, engineering, science and tech. The new visa route, which is described as an elite points-based route, will make it simpler for qualifying businesses to employ highly skilled workers from overseas as they will have less bureaucracy and paperwork to deal with. As part of the route, highly skilled migrants with a job offer from a recognised high-growth firm will qualify for a visa without the need for sponsorship or third-party endorsement. Further details on the elite points-based route are expected in July and the reforms are anticipated to be made through immigration rule changes and secondary legislation over the next year.

Where are the shortages in global talent and will the new fast-track immigration proposals help this?

Talent is a subjective word. One could argue that chefs, artists and graphic designers are talented. The new visa very specifically relates to talent in STEM disciplines and addresses shortages in those areas, as included on the latest government shortage occupation list. However, the list also highlights a UK shortage of artists, dancers, musicians, chefs and welders, which this visa route will not help alleviate.

How will the new rules work and who will benefit?

The new rules are, in effect, a reform of existing ones. They will simplify the visa sponsorship process for qualifying businesses that want to sponsor skilled workers. New measures include allowing recipients of international awards, including the Nobel Prize, to automatically qualify for a visa. Migrants wishing to work in the UK who meet the required skills threshold will benefit, as will high-growth qualifying businesses in sectors such as fintech, research and science. 

What are the particular benefits for Fintech, R&D and academia? 

Many high-growth UK firms are founded by migrants, with almost half of the UK’s fastest growing businesses having at least one foreign-born founder. 42% of fintech workers and 40% of science, technology, engineering or maths staff at UK universities are foreign born. But the world is incredibly competitive and is becoming increasingly so. China, India, and South-East Asia have burgeoning Fintech, tech and science sectors as have the US and Israel. All are competing to attract talent. Simplifying the visa route makes it easier to compete in the international recruitment market. But what is arguably just as important is the political message behind the Chancellor’s announcement. Internationally, Brexit damaged Britain’s image. The vote to leave the EU was seen as a vote against migration – Britain was pulling up the drawbridge. While the reformed visa route has some tangible benefits, it also gives the PR message that the UK is open for business.   

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