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The Chancellor in the United Kingdom Rachel Reeves will be invited Wednesday to tear rules that hinder the recruitment of foreign talents by financial groups, while the city of London is aimed at a more open approach to migration to stimulate growth.
Reeves will meet the main banks of the main British banks in the context of efforts to write a new industrial strategy, but will be welcomed with an increasingly current refrain: the economy needs more qualified workers.
“The United Kingdom is in high quality talent competition,” said Miles Celic, managing director of the Thecityuk lobby group. “It is important to continue to reduce administrative formalities to bring high quality individuals to the United Kingdom.”
The demand of more talents abroad poses a problem for the Labor government of Sir Keir Starmer, who also promises to reduce migration and faces fierce political pressure of Reform UK.
Reeves and Jonathan Reynolds, business secretary, develop an industrial strategy covering eight sectors, including financial services, such as the cornerstone of their growth policy.
But officials working on strategy said that a number of sectors, banks in technological and life sciences make similar requests from ministers. “There are big problems with regard to skills and visas,” said a manager.
This month, the Chamber of Lord Chamber Committee declared that the United Kingdom was committed “an act of self-control” because the high visa costs and an inflexible immigration system dissuades students in science And researchers at the start of their career.
Reeves will welcome the bosses of banks, including HSBC, Lloyds, Barclays, Santander UK and Natwest to discuss a strategy to stimulate financial services, with migration, regulations and taxes raised on the agenda.
Among the requests, there will be a matter of accelerating the reforms of the “regime of senior executives”, the rules introduced after the 2008 Krach who would have dissuaded certain bankers from coming to London.
Since 2016, the regime, has senior banking executives, construction companies and credit cooperatives to assume personal responsibility for offenses if they had not taken “reasonable measures” to prevent them. Penalties range from fines to prohibitions.
UK Finance, which represents 300 companies in the sector, said that the regime captured “large expanses of people and compliance has become quite heavy”.
The Treasury said that he would respond to an “appeal to evidence” on the reform of the regime shortly and that he “would deliver a rationalized regulation which limits the charges on the industry while retaining appropriate protections”.
He added: “We will consult if you have to replace the current certification regime so that companies always make sure that the competent staff is in good shape and appropriate, but that the requirements are less heavy.”
UK Finance said it was also putting reeves to carry out banking tax reforms, rationalize regulations and demanded that social media, technology and telecommunications companies share with banks the burden of fighting fraud.
The industrial strategy, which should be finalized in the spring, covers eight sectors: financial services, professional and commercial services, life sciences, creative industries, defense, digital and technology, advanced manufacturing and clean energy industries.
Reeves said at the Davos World Economic Forum last month that she “would again examine the routes for the most qualified people”, distinguishing visas in the fields of artificial intelligence and life sciences.
Companies can hire personnel abroad as part of the Visa Program of Qualified Workers at home office; there was 50,900 main applications Between April and December 2024, 6% less than in the same period in 2023.
Last year, HSBC was among the large British companies to withdraw job offers from foreign graduates after the previous conservative government increased the salary threshold for qualified workers to £ 38,700. The work has kept the upper threshold.
Reeves, announcing its dialogue with the financial services sector last month, said: “I undertake to work hand in hand with the industry to make sure that our plans are informed by those who provide and use the services financiers. “
