Britain’s reputation among foreign would-be students has already worsened. “Really very bad news” and “new rules hit us badly” are two typical comments left on an Indian website that reported the change in immigration rules. A related worry is that business will suffer. The cluster of technology start-ups near the Old Street junction in east London known as “Silicon Roundabout” relies on imported skills. In the City many migrants are on secondment from the head offices of foreign-owned businesses and banks. Workers and students are vital for building the skills and global networks that drive Britain’s service exports. A poorly constructed migration target is putting Britain’s long-term economic health at risk.
Biggish businesses with predictable staffing have generally navigated the stricter rules. Multinational firms are free to bring in staff from offices abroad provided their pay is above set thresholds, which vary depending on how long the workers will stay. Some companies, such as Tata Consultancy Services, the Indian firm that pioneered the outsourcing of computing to remote locations, have responded by tweaking their employment practices. Tata now sends middle managers to Britain for less than a year, to comply with the lower salary threshold.