The Resolution Foundation surveyed over 500 employers who employ EU/EEA nationals, and identified a huge gap between the kind of immigration system employers expect and what the new government is planning.
Nearly a third (30%) expect freedom of movement to be maintained for EU/EEA nationals moving to the UK with a job offer, while 17% expect no change to the current system.
The PM has ruled out either option, stating that her government – rather than employer demand for workers – will control migrant numbers. However, this may change now that a softer Brexit is being proposed post-election.
The Foundation warned that lower migration, along with a higher minimum wage and a tightening jobs market, could mean the end of cheap labour for many UK firms.
Changing face of Parliament
There's still some way to go, but the good news is that Parliament is more diverse than ever. The BBC breakdown shows (out of a total of 650 newly elected MPs):
- 208 women, compared with 191 in 2015
- 52 people from ethnic minorities, an increase from 41 in 2015
- 45 who openly define themselves as lesbian, gay, bisexual or transgender (LGBT), a 40% increase since 2015
- An increase in the number of MPs with disabilities (no official figures)
- 51% went to comprehensive schools, 29% went to private school, 18% selective states
There will be more on diversity in a future article.
What can SMEs do?
The way things are going, there's no way of predicting how the situation will play out over the long-term. In fact, it's currently changing on a daily basis. In the short-term, SMEs will no doubt attempt to carry on business as usual. Here are some tips:
- Companies large and small are pondering their investment decisions. Use AkoniHub to find the bank with the best interest rate. That way, your business deposits will grow faster, while the politicians sort themselves out
- Focus on building your pipeline and business confidence. In the here and now, many firms across the UK have been doing well
- Understand the key threats and opportunities that lie ahead
- The future of devolution is an important consideration in business planning. So review the impact of further volatility in sterling as firms weigh up their business models and plans to invest or recruit.
For the vast majority of companies in the business communities we visit, Brexit feels far away and far off — what matters are the high upfront cost of doing business, poor broadband, the inability to recruit successfully for vacancies or transport gridlock. Different regions may also have their own view. In many parts of England, upcoming elections for new city/regional mayors whose powers matter to local business success could overshadow anything that happens in the national polls.
In the British tradition, let's all try to keep calm and carry on. The UK must be seen to remain open for business, with a government committed to supporting enterprise. This means a clear timetable and ongoing pressure via industry bodies and associations for value add.
Akoni helps businesses make the most of their cash. Register for free at AkoniHub.com