(Bloomberg) — Britain needs more migrants to boost economic growth and alleviate a shortage of labor and skills, according to a survey conducted by one of its leading business groups.
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Three-quarters of respondents believe a lack of access to labor is threatening the UK’s competitiveness as a place to employ people, the Confederation of British Industry said Tuesday.
Almost half of the companies affected by labor shortages said they had been unable to meet demand for their products or services as a result.
Prime Minister Liz Truss is eager to liberalize the UK’s migration rules as part of her central policy of lifting growth to fund tax cuts. That could put her at odds with some other government figures, including Home Secretary Suella Braverman, who have taken a tougher line on immigration.
Britain has become a less attractive place to invest over the past five years, 72% of respondents to the CBI survey said. During that period, the country has left the European Union, making it more complicated to recruit workers from nearby countries.
“It is crystal clear that labor market shortages are having a material impact on firms’ ability to operate at full capacity, let alone grow,” said Matthew Percival, the CBI’s director for skills.
The CBI has called on the government to reform its policies on migration, skills and planning, which it says are Britain’s “genuine barriers to growth.”
The survey said 38% of respondents suggested the UK’s Migration Advisory Committee should conduct an immediate review of rules that allow more migration of workers for specific industries, while 44% called for emergency temporary visas for certain jobs until such a review is finalized.
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