An IMGW News Report
Introduction
In a world where the mobility of talent and capital defines economic competitiveness, investment migration stands out as a powerful strategy for countries to address skill shortages and attract global talent. In this article, we outline what initiatives the United Kingdom (UK) has launched to bridge the country’s widening skills gap[1].
The United Kingdom, like many developed countries, faces significant challenges in filling skills shortages across various sectors. From healthcare to technology, the demand for skilled professionals outstrips supply, forcing one in four UK businesses to hire global technology talent in particular from overseas to tackle domestic skills shortages[2]. Many businesses in the UK are struggling to find skilled workers in the IT industry, according to a survey of 500 companies conducted by Forbes. The survey found that 93% of businesses reported a significant skills gap in the job market. The fast pace of technological advancements in areas such as AI, data analytics, and cloud computing is a primary concern for 42% of these businesses, making it difficult to keep up. Lack of proper training opportunities accounted for 41% of the skills shortage, while 37% mentioned the lack of relevant educational programs. In addition, 35% of the respondents pointed to the competitive job market, which is characterized by a scarcity of skilled candidates and numerous opportunities, as a significant challenge in recruitment and retention[3].
“the Global Talent Visa has successfully provided a pathway for over 5,000 highly skilled global professionals to join the UK tech ecosystem”
Whilst there is no silver bullet for beating the talent shortage, investment migration also known as citizenship by investment or residency by investment, must be considered a valuable contributor to supporting the UK in retaining its status as one of the leading global tech start-up and financial centres in the world.
A move in the right direction?
The pleas of business leaders and lobbying bodies[4] for the UK Government to help firms access the world’s best talent have not been brushed aside. In a welcome move by many, changes by the Chancellor to the UK business visitor rules came into effect on the 31st of January 2024 to “simplify and expand the UK’s business visitor visa [route]” so “businesses can access the talent they need”[5]. Will these widen the range of permitted activities that business visitors can undertake in the UK to arrest the country’s talent shortage? No, but changes to the business visitor rules may, indirectly, contribute to addressing these shortages by facilitating stronger international collaborations and knowledge exchange and potentially attracting individuals who may later choose to contribute their skills to the UK on a more permanent basis.
The role and importance of Investment Migration
In 2024, The UK continues to put its trust in attracting international talent through various visa programmes, notably the Global Talent Visa for leaders in fields like science and technology, the Innovator Founder Visa, and the Global Entrepreneur Programme (GEP) that encourages global entrepreneurs with innovative business ideas to locate in the UK.
The Global Talent Visa
The UK’s Global Talent Visa targets academia, research, arts, and technology leaders. Aiming to attract top-tier global talent in fields where the UK is experiencing acute shortages, such as digital technology, the Global Talent Visa has successfully provided a pathway for over 5,000 highly skilled global professionals[6] to join the UK tech ecosystem. Impressively, one in four Visa recipients, endorsed by Tech Nation have founded exciting new businesses creating jobs in fintech, AI, cyber and gaming.
The Innovator Founder Visa
Launched last year as a replacement to the Startup visa, The UK’s Innovator Founder Visa has been designed for both start-up entrepreneurs and experienced businesspersons looking to set up a business in the UK, which is innovative, viable and scalable. You can understand why the UK is paying particular attention to attracting founders to the UK. Research published by The Entrepreneurs Network (TEN) in 2023 highlights that foreign-born founders play a disproportionate role in building successful and innovative UK companies like Oddbox, Zapp, Synthesia, Kroo, and Zilch. While 14.5 per cent of the UK population is foreign-born, 39% of the 100 fastest-growing companies in the UK have, according to Ten, a foreign-born founder or co-founder. Within this segment, 14% were set up by a foreign-born founder or a team of foreign-born co-founders, and 25% were set up as a joint venture of a British-born co-founder and a foreign-born co-founder[7]. In 2024, migrants continue to play “an enormously disproportionate role in founding the sorts of companies essential for pushing the UK economy forward, creating jobs and funding public services.”
Global Entrepreneur Programme (GEP)
The Global Entrepreneurship Programme (GEP) is the UK’s Department for Business and Trade flagship programme to attract skilled entrepreneurs from across the globe to develop and expand their businesses within the UK. Once accepted into the programme, businesses can receive an Innovator Founder Visa endorsement and expert guidance on scaling up and internationalising their operations.
Since 2005, GEP has attracted 900 entrepreneurs to invest in the UK, creating more than 5,000 high-quality jobs and raising more than £1 billion in venture capital[8]. GEP boasts global alumni, including Nigerian fintech startup Kuda, SwiDch, a business specialising in cyber security that was initially set up in South Korea and The Dots which relocated from Australia to the UK in 2014.
Final word
Investment migration is a valuable tool in addressing the UK’s skills shortages. By strategically targeting sectors in need and facilitating the entry of skilled foreign-born professionals, entrepreneurs, and investors, the UK has taken steps towards alleviating these shortages. These programmes have much to shout about; however, their success may well be overshadowed by the new salary requirements for overseas workers[9] and growing uncertainty over post-study work opportunities for international students that threatens to cut the supply of international talent many UK firms need and want to stay competitive in 2024.
[1] UK, Employer Skills Survey, 2022 Employer skills survey: 2022 – GOV.UK (www.gov.uk)
[2] 2022 Remote survey of 1,400+ global hiring managers Expert advice on recruiting internationally | Remote
[3] IT Skills Gap 2023, Forbes Advisor https://www.forbes.com/uk/advisor/business/software/digital-skills-gap
[4] The City UK article: Smoother access to global talent Today’s short-term mobility reforms: Smoother access to global talent | TheCityUK
[5] Autumn Statement November 2023 https://www.gov.uk/government/publications/autumn-statement-2023
[6] Tech Nation Tech Nation Global Talent Visa Report 2024: 10 Years of Global Talent in UK Tech
[7] The Entrepreneurs Network, Job Creators Report, 2023
[8] Department for Business & Trade article Global entrepreneur scheme set to boost trade with Western Balkans
[9] UK Home Office article Home Secretary unveils plan to cut net migration December 2023