The UK Government have published their much-anticipated White Paper on reforming the immigration system, but the proposals leave more questions than answers for Scottish businesses.
For many, the proposals represent a new set of operational pressures. From increased visa costs to shifting eligibility thresholds, the landscape for international recruitment is evolving quickly. Yet these challenges are not insurmountable - and there are steps employers can take to mitigate risk and futureproof their workforce.
Understand the financial implications
One of the key changes is a 32% rise in the Immigration Skills Charge, but the bigger impact comes from plans to double the qualifying period for Indefinite Leave to Remain. Together, these changes could see the cost of sponsoring a worker jump from £5,525 to £14,250 for businesses, before even factoring in visa fees and the Immigration Health Surcharge many employers cover to attract top talent.
For Scottish employers, particularly SMEs and those outside the Central Belt, these increases could alter the cost-benefit calculation of hiring from overseas.
Conducting a financial impact assessment across your recruitment strategy is a vital first step. Which roles are supported by international hiring? How reliant is your pipeline on graduate talent or short-term visa routes? Quantifying these costs now will make it easier to respond swiftly when policy changes take effect.
Support graduate talent with earlier decision-making
The proposed reduction in the Graduate Visa route - from two years to 18 months - may disproportionately affect employers running two-year graduate schemes. In Scotland, where retaining graduate talent is vital to long-term growth, this change could cause real disruption if businesses aren’t prepared.
Employers should consider whether earlier sponsorship decisions, or the redesign of graduate programmes, could help retain access to this vital talent pool. Employers may also want to explore whether hybrid pathways, such as part-time work alongside postgraduate study, could extend retention while aligning with visa conditions.
Anticipate sector-specific risks
Industries, such as health and social care, hospitality, and construction, are likely to experience the sharpest impacts. These sectors already face local shortages that international recruitment helps to address.
Employers can strengthen resilience by reviewing which roles are most at risk, developing targeted retention strategies for existing staff and investing in local upskilling initiatives where possible.
Plan for the long term
Immigration reform is often driven by political cycles, but the consequences for business are structural and lasting. For Scottish employers already contending with demographic shifts, skills shortages and productivity pressures, these proposals add a new layer of complexity.
The most resilient businesses will be those that treat this moment not as a short-term policy hurdle, but as a catalyst to rethink how they build and sustain their workforce. That means embedding immigration strategy into broader talent planning - not just for senior or specialist roles, but across entry-level and junior roles too.
Overall, the changes in the White Paper are likely to achieve their goal of cutting the level of net migration, but for businesses, it is an opportunity to re-evaluate how they attract, train and retain talent in a changing labour market. Those that act early will be best placed to respond – whatever final form the reforms take.
This article was featured in Scottish Business Insider - read the original article here.
