There has been much on the airwaves regarding the Government’s mini-budget. As predicted, it followed through on Liz Truss’s plans to cut national insurance and to cancel the rise in corporation tax. But what dominated the headlines was the surprise announcement regarding the top rate of income tax which she later reneged on. Due to all this, another part of her plan for growth has largely been overlooked – her plans to increase immigration. This is, as I would argue, the best part of her plan for growth – a researched-backed method to get the economy moving faster again. I hope that this doesn’t end up with its own U-turn, like many of her other plans are predicted to be heading towards.

According to reports, the government will increase the number of positions on the shortage occupations list and ‘lift the cap on seasonal agricultural workers and broadband engineers’. These are all positive moves to fill the record number of job vacancies of 1.3 million that was recorded in May. This is where growth will occur, through supplying our businesses a workforce that will enable them to operate more effectively. We all win when our businesses perform effectively. Businesses stay viable when positions are filled keeping others in employment, they have more money to pay their employees, higher taxes can be recouped, more money can be spent in the local economies where those businesses operate etc. A win for all. 

The literature is clear that the immigration of high-skilled workers contributes positively to growth. So, should we publicly be praising the Conservatives for adopting this policy? Not so fast. It may be a blessing that this move has managed to slip past without much attention. Negative attitudes towards immigration in the UK persist, with 46% of UK adults wanting lower levels of immigration.  This means a lot of the public will not positively react to the news that there could be greater immigration to the country. This is especially true of 2019 Conservative voters, of whom 73% favor reducing the amount of immigration. So it may be best the Conservative party keeps this one quiet, especially considering their recent poll results. 

This move was also a surprise with Truss positioning herself as the representative of the pro-Brexit right of the Conservative party with her run-off with Rishi Sunak. The vote to leave the European Union in 2016 is associated with negative attitudes towards immigration, so to have the candidate representing the Brexit wing of party plan to increase immigration was a shock. It was Truss once again showing that she can be unpredictable in terms of policies, which I doubt will add to the confidence the public (and the markets) has in her.

Whatever the future holds regarding Truss and the Tories, I hope this policy stays and is built upon. Immigration of workers and refugees are both good things and we desperately need good things in the country now.

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