Passengers use an escalator on the opening day of the new Elizabeth Line at Farringdon Station in London, UK, on Tuesday, May 24, 2022. Just a third of Elizabeth Line stations have seen nearby properties notably increase in value by more than the local housing market since construction of the line began in 2009, real estate broker Savill's Plc said. Photographer: David Levenson/Bloomberg Three-quarters of respondents believe a lack of access to labour is threatening the UK’s competitiveness as a place to employ people, the Confederation of British Industry said Tuesday.
Almost half of the companies affected by labour shortages said they had been unable to meet demand for their products or services as a result.
Prime Minister Liz Truss is eager to liberalize the UK’s migration rules as part of her central policy of lifting growth to fund tax cuts. That could put her at odds with some other government figures, including Home Secretary Suella Braverman, who have taken a tougher line on immigration.
Britain has become a less attractive place to invest over the past five years, 72% of respondents to the CBI survey said. During that period, the country has left the European Union, making it more complicated to recruit workers from nearby countries.
“It is crystal clear that labour market shortages are having a material impact on firms’ ability to operate at full capacity, let alone grow,” said Matthew Percival, the CBI’s director for skills.
The CBI has called on the government to reform its policies on migration, skills and planning, which it says are Britain’s “genuine barriers to growth.”
The survey said 38% of respondents suggested the UK’s Migration Advisory Committee should conduct an immediate review of rules that allow more migration of workers for specific industries, while 44% called for emergency temporary visas for certain jobs until such a review is finalised.