Business Chiefs Urge Faster Visa Processing to Safeguard London’s Economy

Business leaders in London are urgently calling for a more efficient visa system for short-term workers, warning that a continued clampdown on immigration could damage the city’s economic recovery. The London Chamber of Commerce and Industry (LCCI) recently published its latest quarterly economic survey, highlighting growing optimism among company executives but sounding the alarm over potential risks to future growth.

Karim Fatehi, Chief Executive of LCCI, emphasized the critical role immigration plays in keeping London’s economy competitive. He pointed out that the city’s success has long been driven by its openness to global talent.

“London’s success is built on its openness and diversity, where businesses can access an unrivalled pool of talent, perspectives, experiences, and languages,” Fatehi told The Standard. “To maximize employment in London and reduce economic inactivity, we must ensure that visa and immigration rules are conducive to economic growth and support our economic potential.”

The Call for Faster Business Visa Processing

Fatehi also stressed that London needs a business visa system that is more efficient and supportive of growth. He called on the government to prioritize business visa processing times and introduce short-term worker visas to several key industries. This, he argued, is essential if London is to retain its position as a leading global business hub.

“To ensure London retains its position as a leading global market hub, the government must work with businesses to deliver a pro-business skills and immigration system,” he said. “This will require a comprehensive set of measures, including increased provision of short-term worker visas across several key industrial sectors and accelerated business visa processes.”

Boosting Economic Optimism Despite Challenges

The quarterly survey conducted by the LCCI provided encouraging insights into the mindset of London’s business community. Optimism about the city’s economic future has been rising steadily, with key findings revealing that:

• 40% of businesses anticipate economic growth in London over the next 12 months, an increase from 35% in the second quarter of 2024.
• 13% of firms reported increasing their workforce size in the third quarter.
• 26% expect their workforce to grow in the coming months.
• 26% reported a rise in domestic sales, with 22% seeing an increase in domestic orders.
• 10% experienced an increase in export sales and export orders.
• 29% reported improved cash flow, with 18% investing more in plant and equipment.

Despite these positive indicators, Fatehi warned that further government support is needed to sustain long-term growth. With the UK Chancellor, Rachel Reeves, expected to announce tax hikes and public spending cuts in the upcoming Budget, businesses are seeking reassurance.

“It’s encouraging to see businesses expressing a heightened sense of optimism about their future prospects and the overall economy, reflecting a more positive outlook than we have seen in recent years,” Fatehi remarked. “Nevertheless, as we approach the impending Budget, the latest findings from the Q3 Capital 500 highlight an urgent need for the government to provide reassurance to the community through the long-term stability essential for sustained growth.”

Immigration Policy Under Scrutiny

As concerns grow over the potential impact of tighter immigration controls, UK Prime Minister Rishi Sunak and Labour Party leader Sir Keir Starmer have both sought to reassure businesses that they will not introduce sudden changes that could cause disruption.

Speaking at the Labour Party’s annual conference, Starmer emphasized the need for a balanced approach to immigration, saying he wouldn’t “chop off their legs” by immediately reducing access to visas for international workers. Meanwhile, Sunak echoed similar sentiments, stressing that changes to immigration policy would not make businesses “fall over.”

The issue of immigration remains critical for the UK economy, with recent figures from the Office for National Statistics showing the population increased by 1% in the year to June 2023, the largest annual rise since the early 1970s. Net international migration was cited as the key driver behind this growth.

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