A coalition taskforce is reportedly considering a plan to slash net overseas immigration by nearly half its current rate, sparking concerns about the UK's labour market and economy. According to leaked documents, the taskforce is mulling options to cut the level to 150,000-200,000, a move that is higher than One Nation's hard cap of 130,000 and the Howard-era's 100,000 target.
The move is likely to be met with opposition from businesses and trade unions, who argue that a reduction in overseas immigration would exacerbate existing labour shortages and undermine the UK's economic growth. The plan is also expected to raise concerns about the impact on the NHS and other public services, which rely heavily on migrant workers.
The UK's current net overseas immigration rate stands at around 300,000-400,000 per year, according to the Office for National Statistics. A reduction of this magnitude would have significant implications for the UK's demographic and economic landscape, including a potential ageing population and a shortage of skilled workers.
The UK Government has yet to confirm the details of the plan, but a spokesperson for the Home Office said that the department was 'considering a range of options to manage the UK's immigration system in a way that prioritises the needs of the British people'. The Government is expected to respond formally to the leaked documents in the coming days.
The proposal has also sparked concerns about the potential impact on British nationals who live abroad and work in the UK. According to the UK National Health Service's own data, there are over 100,000 British citizens living and working abroad who contribute to the NHS workforce. A reduction in overseas immigration could lead to a shortage of skilled workers, placing additional pressure on the NHS and other public services.
The UK Government's decision to consider reducing net overseas immigration comes as the country continues to grapple with the aftermath of the COVID-19 pandemic and the ongoing impact of Brexit on its economy.