Davos (Parliament Politics Magazine) – Rachel Reeves announced plans to review visa routes to attract global talent, particularly in AI and life sciences, as part of the UK’s growth strategy.
Speaking at Davos, the Chancellor expressed her firm support for wealth creation, highlighting it as a priority for Britain’s economic agenda.
How will the UK attract global talent through new visa schemes?
To enhance economic growth, the British government will release an immigration white paper this year, which will include potential changes to the visa system to attract more skilled workers.
During a breakfast event at the World Economic Forum in Davos, the Chancellor said, “We are going to revise routes for the highest skilled people, visas, particularly in the areas of AI and life sciences.”
Ms. Reeves highlighted that the UK remains open to both businesses and talent, offering top universities and entrepreneurs, and a desire to draw in talented professionals from around the world.
Is Labour’s visa review a step towards attracting global talent?
The government has consistently prioritized reducing migration, with Sir Keir Starmer criticizing the Tories for conducting an ‘open borders experiment.’ In contrast, Labour seeks to show that Britain is open to highly skilled professionals by reviewing the current visa system.
According to the latest figures, 50,900 skilled worker visa applications were submitted from April to December last year, highlighting the ongoing use of the Home Office’s skilled worker visa system by businesses seeking to hire overseas talent.
Ministers also intend to engage with firms on proposed modifications to the visa system to draw top-tier talent. Moreover, British nationals will be tasked with promoting the benefits of living in the UK to skilled workers and entrepreneurs around the world.
What Is the UK Government’s “Pro-Growth” strategy at Davos?
During the World Economic Forum in Davos, Chancellor Rachel Reeves, joined by Business Secretary Jonathan Reynolds, engaged in discussions with a range of business experts throughout the week-long event. They both reaffirmed their support to make “pro-growth decisions in the national interest.”
Ms Reeve said, “Britain is open for businesses, for talent. We want to bring global talent into Britain.”
When questioned about rejoining the EU’s customs union, Ms Reeves quickly dismissed the idea, saying, “We’ve moved on.” While Jonathan Reynolds stated that Britain is eager to explore a more “ambitious conversation” regarding goods regulation.
Is Chancellor Rachel Reeves set to approve a third runway at Heathrow?
At Davos forum in Switzerland, Rachel Reeves refrained from commenting directly on the third runway at Heathrow, though she suggested that the green light for the runway could be given soon. She also highlighted the importance of progressing with essential infrastructure projects despite backlash.
The Chancellor said, “The answer can’t always be no, and that has been the problem in Britain for a long time.”
When a question was asked about the party division over the issue, she commented on the expansion of the airport, stating, “This is a problem of the last government, there was always someone who said, we want to grow the economy, but we don’t like that investment, we don’t like that wind farm, we don’t like that airport, the answer can’t always be no.”
Will regulatory changes help drive growth in tech and finance?
In a meeting with regulators last week, government officials pushed for clear plans to revise their strategies to enhance economic growth, especially in tech and financial services. It is also believed that the Competition and Markets Authority (CMA) approach to essential sectors has raised concerns among the government.
Last December, before Christmas, the British Prime Minister, along with the Chancellor and Business Secretary, also wrote letter to the major UK’s regulators, including Ofgem, Ofwat, to propose ideas for economic growth.
Rachel Reeves facing pressure due to rising borrowing costs
On Wednesday, it was revealed that the UK borrowing costs climbed to £17.8bn in December, significantly exceeding predictions. Many business leaders and experts urged Rachel Reeves to tackle the growing deficit.
The Chancellor’s first budget faced backlash for rising taxes, and multiple protests have been conducted by farmers to oppose her budget. Defending her budget in the Davos forum, she said last year’s tax increases for businesses had helped her “wipe the slate clean.”