UK economy risks missing out on skilled labour amid immigration crackdown
As the government continues to appease the demands of the far-right, its hardening line on immigration is making it harder than ever for skilled labour to settle in the UK. According to Nisha Leel, head of immigration at legal firm Cartwright King, this is going to have a knock-on impact on the economy, as businesses looking to respond to a number of major headwinds find it difficult to source the right talent.
Immigration has been welded to the front-pages of mainstream news sources in recent weeks. A year on from the Southport riots, when far-right operators weaponised misinformation to stoke anti-migrant sentiment across the UK, protests have swept the country – this time targeting supposedly ‘luxury’ hotels where asylum seekers have been housed. Amid the unrest, Reform UK – the opposition party led by Nigel Farage, currently leading in the polls – announced plans for mass deportations, should it form the next government.
Since returning from the summer recess, the government has responded to this by announcing new plans to strengthen border security and close the hotels. Home Secretary Yvette Cooper is also expected to promise to overhaul the UK’s family reunion policy, which allows people to bring their partners and children to the country once they are granted refugee status – something critics have suggested means Labour are doing Reform’s work for them, rather forming their own agenda.
The Labour government’s plans don’t stop at asylum, though. For months, the administration has been preparing new rules aimed at an overall reduction in immigration of all kinds. A new set of government policies aimed at "restoring control" over inward migration came into effect in late July 2025. Changes include: an increase in the time it takes to reach permanent settled status, from five years to ten years; increased English language requirements for many types of visas, including family visas; a tightening of criteria for skilled worker visas, many of which now require degree level qualifications or higher; and higher compliance requirements for businesses which sponsor migrant workers, and restrictions on who they can sponsor.
This overhaul of immigration rules has led to a surge in businesses and individuals pursuing legal advice to settle in the UK. According to Cartwright King, a Legal 500 firm with offices nationwide, the firm has seen a “significant” increase in people seeking help to settle in the country – with its immigration department’s caseload rising by an expected 40% this summer. And that comes with its own set of challenges.
Rising barriers
Nisha Leel, head of immigration at Cartwright King, said, “This major shift in immigration policy is causing concern for employers as well as individuals and families. In particular, business owners are worried about filling gaps in their workforces, at a time when many are struggling with more broad economic challenges. Simply speaking, this will make it more difficult for some sectors to find the right people.”
Law firms are preparing for an influx of client work resulting from the new policies, including eligibility assessments, appealing denied visas, and advising workers and businesses on complex visa and sponsorship applications. The changes are expected to have a disproportionate impact on sectors such as social care, which have historically relied on overseas workers.
The government has said it plans to invest more in domestic skilled workers to fill the shortfall. However, doing so will be easier said than done – at a time when the economy is already struggling.
“The risk is that these new policies make Britain a less attractive home for highly skilled workers who would actively contribute to the economy,” Leel continued. “Although the government wants to nurture homegrown talent, these plans will take some time to come to fruition, meaning industries which rely on migrant work now have no time to adjust. Cartwright King is committed to assisting valuable and skilled overseas workers find the right routes to working and settling in the UK.”
Cartwright King specialises in complex and high-volume legal matters, and has offices in London, Birmingham, Manchester and six other cities. Ahead of the planned changes in policy, Cartwright King has invested in its immigration department this year. Leel herself was appointed as the firm’s head of immigration in May.
