Fri 02 May 2025

A Scottish Visa may be appealing – but it’s no silver bullet for business

One in four Scottish employers are reporting vacancies - with a third due to skills shortages  - and sectors from hospitality to construction are feeling the strain. With the country’s working-age population projected to shrink by 14.7% between 2025 and 2075, the need for a more responsive immigration system is becoming urgent.

One solution gaining traction is a Scottish-only visa. The Devolution (Immigration) (Scotland) Bill, which recently had its second reading in Parliament, proposes giving Holyrood powers to legislate on immigration. It is not the first time that it has been argued that the needs of Scotland differ to those of the rest of the UK, and that a separate immigration system is needed.

For employers already struggling to fill vacancies - from care providers in Glasgow to manufacturers forced to outsource overseas - a tailored approach could offer real benefits. But while the case for change is clear, implementation is another matter.

A distinct system would need to avoid conflict with existing UK frameworks, ensure effective enforcement and provide clarity for employers operating across borders. There would also need to be clear safeguards to ensure visa holders are genuinely living and working in Scotland – and not moving further afield.

These hurdles are real, but they can be overcome.

The current UK system already includes work-location restrictions for some visa holders, and Scotland’s distinct income tax framework offers a mechanism for tracking residency. Data sharing between HMRC and the Home Office is increasing, and other countries, such as Canada and Australia, have successfully introduced regional migration programmes to boost local labour markets. In housing, landlords in England are already required to conduct right-to-rent checks, offering an additional means of reinforcing location-based visa conditions.

However the debate unfolds, any new approach must be geared towards enabling business, not creating additional barriers. If a Scottish visa is to succeed, it must be simple to navigate, aligned with UK frameworks, and responsive to the real recruitment needs of employers on the ground.

The recent Bill reading has highlighted the need for a discussion about the differing immigration needs across the UK. But the focus should remain on improving flexibility and accessibility in the existing system for Scottish businesses - providing clearer guidance to employers, especially those smaller businesses that lack in-house human resources or immigration support.

Scottish businesses are not calling for change for political reasons – they’re calling for it because they need people. Whether a one size fits all policy is the best way forward, any immigration reform must be tailored to the realities of running a business in Scotland.

This article was originally published in Scottish Business Insider, read the original article here.

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