The government’s announcement that most intra-company transfers (ICTs) will be exempt from a cap on migrant skilled non-EU workers is a “good result” for the UK economy, according to John Cridland, CBI director-general designate.

Yesterday, Home Secretary Theresa May announced the government is introduce a cap of 21,700 on the number of skilled workers from outside the European Economic Area allowed into the UK.

The figure, while a cut of 6,300 on the equivalent figure for 2009, does not include employees, transferred by their employer from another country on an ICT, who will be allowed to stay for up to five years if their salary is more than £40,000.

Cridland says: “This is a good result for the economy and for the country as a whole, and sends out the message that Britain really is open for business.

“Crucially, the design of the new system prioritises the routes of entry that matter most to the economy. The new system rightly gives priority to people with a job offer over those without one, so companies will still be able to access talent from around the world.

“Exempting most ICTs from the cap will also allow firms with international operations to manage their global workforce effectively. This will make sure that the UK remains an attractive place to base new projects and investment, which means more jobs for UK workers.

“Of course, achieving a reduction in net migration will require action in other areas, including student, family and settlement visas. So we welcome the government’s announcement of a consultation on student visas.”

David Frost, director general of the British Chambers of Commerce (BCC), adds: “Businesses will hold the Home Secretary to her pledge to ensure that businesses will still have the flexibility to hire according to their needs.

“In a globalised economy, it is essential that multinationals can transfer senior employees to the UK and that business can fill skills gaps when required.

“It is right that companies that require skilled workers for a specific job move to the front of the queue, as these individuals are essential for economic growth and ensuring that the UK remains competitive.

“Now the government must work with business to ensure that the new criteria allow the best and the brightest into the UK. Attracting more entrepreneurs and investors from overseas will contribute towards making 2011 a year for growth.”

Ann Swain, chief executive at the Association of Professional Staffing Companies (APSCo), adds: “About 80% of non-EU IT workers come to the UK on intra-company transfers. The cap won’t significantly reduce that influx.
 
“We need full transparency on the pay and terms of conditions of workers entering the UK via the intra-company transfer route. The current system is far too opaque and is open to abuse. These proposals don’t radically change that.”
 
“The cap is a blunt tool which could do more damage than good. The vast majority of foreign workers arriving in the UK are EU nationals who won’t be affected by the cap.”
 
“Worries over immigration centre on low skilled workers being undercut, so capping the flow of highly skilled workers seems a strange policy.”
 
“By imposing an inflexible cap, the government could be damaging high value sectors of the economy where skills shortages can hinder growth.”