Experts Say UK Emigration Cap is Bad For Business

To a lot of people in the UK, the general view on emigration to the UK is pretty negative. This has to do a lot with recent election debates on the issue. However, it also had to do a lot with the very extensive coverage that the media has been doing on the topic.

However, the proposed introduction of a cap on emigration by the new coalition government may not be the answer that everyone is looking for, according to some experts. These experts state that such a cap will not deal with the problem of emigration. In fact, they go on to say that it may just substantially damage the UK's economy and threaten its overall recovery.

Apparently 70 percent of emigration into the UK comes from the European Union. This emigration cannot be prevented short of the UK actually leaving the European Union. A cap on emigration cannot stop the vast majority of people coming into the country to work and will only affect the minority of people coming in from outside the union.

In fact, experts go on to say that this cap will only affect the skilled workers who are coming in from other countries that play a very key role in the economic development of the country. Emigrants are net contributors in terms of taxes, according to the Institute for Public Policy Research. Emigrants paid a total of £41.2 billion in tax during 2003-2004.

London in particular, is seen as an intentional business center with multinational companies. The experts say that these companies will view any kind of cap on recruiting skilled labour as a significant barrier to doing business in the UK.