While government has listened to the industry on the skilled route, opening up many more roles than previously proposed, the end of temporary immigration has confirmed many of the worst fears of businesses in the sector. And there is very little time for businesses to adapt.
The proposed measures would hit hospitality and tourism businesses hard, particularly given that the industry is already facing an acute labour shortage with record low levels of unemployment and a dip in young people entering the labour market.
For many businesses, the fear is that if introduced, these proposals will cut off future growth and expansion of sector businesses, deterring important investment in Britain’s high streets. Consumers will also suffer, seeing reduced levels of service for customers, and likely business closures.
The policy fails to recognise that hospitality and tourism is at the heart of every community in the UK. Removing the ability of businesses to hire from abroad will have a knock-on effect for schoolchildren and the elderly who rely on catering businesses for their meals.
The government says it is making allowances for staff in the NHS, but it has overlooked the thousands of workers needed to supply meals to patients and staff.
The government’s desire to deliver on the results of the referendum and move towards a skills-based immigration system should not come at the detriment of one of the country’s most important industries.
A points-based system can be made to work for skilled labour and government has listened to the concerns of business. But this must be supported by a temporary route.
Expansion of the Youth Mobility Visa provides a model for delivering this, expanding a system that has worked well for workers from many non-EU countries. Additional measures such as the creation of a temporary immigration route for up to two years, used in periods of labour shortages, would also help to mitigate the impact on the sector.
As hospitality businesses react to this announcement, UKHospitality will be presenting proactive proposals to make the system work for hospitality and the economy. This is critical if we are to deliver our shared objectives of business growth and investment in every region of the country, while providing the high levels of service our customers rightly demand.
Kate Nicholls is chief executive of UKHospitality.
