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UK to review visa system to entice top AI and science talent, says Reeves

January 22, 2025

Rachel Reeves has pledged a root-and-branch review of the UK’s immigration framework, including potential new visa routes for high-skilled workers in AI and life sciences, as part of a wider push to stimulate economic growth.

The chancellor revealed that a white paper will be published later this year, announcing the Government’s vision for “Britain to be open for business and open for talent”.

Speaking at a breakfast event during the World Economic Forum in Davos, Reeves said: “We are going to look again at routes for the highest skilled people, visas particularly in the areas of AI and life sciences. Britain is open for business, we are open for talent, we’ve got some of the best universities, some of the best entrepreneurs in the world, but we also want to bring in global talent.”

While Labour has long emphasised the need to bring overall migration down, Reeves pointedly signalled a desire to reassure international firms and investors that the UK remains an attractive destination for skilled professionals. Ministers intend to engage with businesses on how best to reform current visa pathways, including empowering British diplomats overseas to promote the UK as an appealing place to live and work.

Asked whether she was as comfortable with wealth creation as Tony Blair’s government once declared, Reeves responded emphatically: “Absolutely.” She and Jonathan Reynolds, the business secretary, spent the summit underlining the Government’s “pro-growth” ethos, insisting key infrastructure projects such as airport expansions must not be thwarted by entrenched local opposition.

Reeves was also pressed on the possible approval of Heathrow’s third runway. She avoided direct confirmation but emphasised that the answer to major national projects “can’t always be no”. Her stance suggests a willingness to back large-scale developments to drive growth, reflecting concerns that delays to major infrastructure have hampered the economy.

The chancellor confirmed that Marcus Bokkerink’s abrupt departure as chair of the Competition and Markets Authority was linked to ministers’ calls for regulators to support economic growth more proactively. Bokkerink will be succeeded by Doug Gurr, a former Amazon UK boss, after officials raised concerns that the CMA’s approach had been impeding growth opportunities in crucial sectors, including tech and financial services.

“Growth is our number one mission,” Reeves explained. “We want our regulators to be part of that mission … He [Bokkerink] recognised it was time for him to move on and make way for somebody who does share the mission and strategic direction this Government is taking.”

Commenting on the proposed visa overhaul, Karendeep Kaur, Legal Director at immigration law firm Migrate UK, welcomed the prospect of more straightforward routes for businesses that depend on specialist skills. However, she warned that many firms remain wary of complex sponsor licence obligations and escalating visa-related costs.

“For this to be successful, businesses will need reassurance that gaining specialist talent will outweigh the demands placed on them as sponsor licence holders,” Kaur said. “Since 31 December 2024 UKVI announced that businesses will face instant revocation of their licence should they be found to be ‘clawing back’ certain sponsorship-associated costs. … The increased pressure for compliance may deter businesses from applying for a sponsor licence.”

Kaur also highlighted impending visa fee increases, including a proposal to raise the certificate of sponsorship fee from £239 to £525. When combined with sponsor licence fees, skills charges, and immigration health surcharges – especially for family members – the cost to employers and employees can easily mount to tens of thousands of pounds.

“As enticing as it may be to work and live in the UK,” she added, “there is still demand for the government to reduce overall migration. That places them in a precarious position over how lenient these routes can be.”

Despite these concerns, the Treasury aims to underscore the UK’s strong suit of world-class universities, thriving entrepreneurship and “pro-growth” agenda, hoping a revamped visa strategy will help tackle post-pandemic challenges and bolster the country’s position as a global innovation hub.