LONDON BUSINESS LEADERS PANEL
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- Nigel Hancock
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1 LONDON BUSINESS LEADERS PANEL Online Business Survey Results February 2010 London businesses: immigration fuels competitiveness Seven in ten London firms believe the capital would be less competitive without migrant workers Over 65 per cent of companies say that on balance, immigration has a positive effect on London s economy, rising to 72 per cent of the largest businesses Some 57 per cent of firms consider immigrants to be important to their business Migrant workers were considered most important in Finance/Business Services (58 per cent), Professions (68 per cent) and in inner London (69 per cent) Four in ten London companies estimate that foreign nationals make up more than ten per cent of their workforce More than half of London companies dis that the pressure immigrants place on public services outweighs the economic benefits they bring Businesses remain divided in their views on Mayor Boris Johnson s proposals to offer an amnesty for illegal migrants in London. Some 43 per cent of businesses supported the idea, 52 per cent opposed it, and 6 per cent have no opinion. Introduction The London Chamber of Commerce and Industry (LCCI) has conducted its London Business Leaders Panel survey in partnership with pollsters ComRes on the views of London businesses about immigration. The results show that that the majority of businesses in the capital consider immigration important for London s overall competitiveness, and that, on balance, immigration has a positive effect on London s economy. The poll looked at the percentage of immigrants employed by companies in the capital, the views of London business leaders on the skills and work ethics demonstrated by immigrants, and business opinions about the proposals for an amnesty programme for illegal migrants in London.
2 Immigration and London s Economy Nearly two thirds (65 per cent) of London companies believe that immigration, on balance, has a positive effect on London s economy. Companies with over 20 tended to view immigration more positively, as more than three-quarters of companies with considered the overall impact to be positive, a view supported by 72 per cent of the largest businesses. The sectors which viewed immigration most positively were Professions, with 81 per cent of businesses considering immigration to have a positive impact on the capital s economy; Finance/Business services (68 per cent); Manufacturing/Transport/Logistics (58 per cent) and Other Services (64 per cent). Inner London firms also tended to view the economic impact of immigration more positively, with 72 per cent reporting a positive impact, compared to 55 per cent of outer London businesses. Furthermore, seven in ten businesses believe that without migrant workers, London would be less competitive, rising to 82 per cent of firms with between 20 and 199. Despite widespread debate about the pressures immigrants place on public services, including in London, more than half of respondents disd that such pressures outweigh the economic benefits immigrants bring. Employing Migrant Workers For many businesses in London, immigrants make up an important part of their workforce. More than half (57 per cent) of London businesses d that immigrants are important to their company, rising to 78 per cent among the largest firms. The sectors which considered the contribution of immigrants most important were Finance/Business Services (58 per cent) and Professions (68 per cent). In addition, while 69 per cent of firms based in inner London considered immigrants important for their business, this number was far lower (46 per cent) in outer London. In terms of migrant employment rates, some 43 per cent of London companies estimate that foreign nationals make up more than ten per cent of their workers. Among businesses with over 20, more than half estimate that migrant workers comprise more than one in ten of their staff. And for the largest firms, an average of 67 per cent estimate that their staff includes more than 10 per cent foreign nationals. Although nationals of European Union and European Economic Area member states are not subject to immigration controls, due to the bloc s free movement principles, immigrants in London hail from both these states and non-eu/eea countries. Business benefits of immigration In addition to identifying the macroeconomic benefits of immigration and the impact on London s competitiveness, many London firms report that immigrants bring unique advantages to their business. For example, some 63 per cent of companies believe that an ethnically diverse office works better, which rises to 72 per cent among the largest firms. Meanwhile, some 72 per cent of companies believe that immigrants do jobs that British citizens do not want, and 68 per cent of firms think that immigrants often work harder than their British counterparts. Interestingly, although retail was not among the economic sectors viewing immigration most positively, more than threequarters of retailers surveyed believed that immigrants often work harder than their British counterparts, reflecting the important role immigrants play in this particular sector which is so important for London. London firms were less likely, however, to believe that immigrants are often better qualified than their British counterparts. Less than half of companies (44 per cent) d with this view, with 49 per cent stating they dis and a further 7 per cent stating they strongly dis.
3 The Points Based System (PBS) These results fall against the backdrop of a major overhaul of the UK s immigration system back in 2008, with the introduction of the Points Based System (PBS). This method, similar to those already adopted by countries like Australia and Canada, determines eligibility for immigration based on criteria such as qualifications, skills and past earnings. The stated goal of the system is to ensure that only the skilled migrants the country needs will be able to come to the UK. The PBS is split into 5 tiers, detailed below: Tier 1 Highly skilled workers (for example scientists and entrepreneurs); Tier 2 Skilled workers with a job offer (for example teachers and nurses); Tier 3 Low-skilled workers filling specific temporary labour shortages (for example construction workers for a particular project) NB this tier is suspended indefinitely as the government expects employers to recruit resident or EU workers to fill these roles; Tier 4 Students Tier 5 Youth mobility and temporary workers (for example musicians coming to play in a concert). Tier 1 migrants have free access to the labour market, having proved a high level of skills and qualifications, and therefore employers do not need to provide a certificate of sponsorship to employ them. However, employers wishing to hire non-eu/eea migrants must apply to become a registered sponsor with the UK Border Agency. Any job must be advertised for four weeks in the UK at a Jobcentre Plus to ensure UK residents have the opportunity to apply, and if there are no suitable resident workers available, the employer can apply under Tier 2 to employ a non-resident. The only exception to this is if employers wish to hire a migrant to fill a shortage occupation, as determined by the Migration Advisory Committee (MAC) or bring workers in through the intra-company transfer route. These categories have their own rules but advertising the role in Jobcentre Plus is not required. Problems with Immigration Law Although many London businesses had an overall positive view about immigration and its impact on their own businesses and the wider economy, this does not mean that the process of employing immigrants is always simple or straightforward. For example, the PBS system means that employers must spend time applying for a sponsor license, which was not previously part of the process. Perhaps unsurprisingly, those firms and sectors most likely to employ migrants experienced the most difficulties with the immigration system. Larger firms and those working in Finance and Business services were most likely to encounter problems in dealing with immigration law, as reported by 13 per cent of firms. Meanwhile, some 14 per cent of medium-sized firms and 11 per cent of large firms reported problems. The difference between medium and large businesses may be related to access to specialist knowledge on immigration, for example having expert legal or personnel advice based in-house. Of those businesses who had problems with immigration and employment law, the most common issues were bureaucracy (60 per cent); costs of compliance (47 per cent); and lack of clarity in existing immigration and employment law (33 per cent). Of considerable concern is the fact that some 40 per cent of companies experiencing difficulties in navigating immigration law reported that they were unable to hire required foreign workers as a result. Business views on immigrant regularisation London businesses remain divided in their views on specific immigration policies relating to the capital, especially during the recession. While half of businesses felt that the recession means that movement of workers into London should be more restricted, the remaining 50 per cent disd. The largest
4 businesses and those based in inner London were most likely to oppose this policy, where support dropped to 44 and 40 per cent, respectively. Companies are similarly divided on London Mayor Boris Johnson s proposals for an amnesty programme for illegal immigrants who have been living in London for over 4 years, which would give and estimated up to 400,000 people living illegally in London the chance to earn citizenship. Just over half of businesses surveyed opposed it, while 43 per cent supported the idea and 6 per cent had no opinion. When asked about the impact of such an amnesty on business in the capital, 47 per cent of firms thought the impact would be negative, while 38 per cent anticipated a positive impact and 15 per cent felt there would be no effect. Larger companies were the most likely to expect a positive impact, with 50 per cent anticipating this outcomes, while nearly half of the smallest firms (1-19 ) expect a negative effect.
5 Immigration Survey - Full Results Tables What proportion of your company s working in the UK do you estimate are foreign nationals? 0-10 % 57 % 69 % 44 % 21 % 33 % % 14 % 6 % 21 % 36 % 33 % % 7 % 5 % 12 % 14 % 6 % % 7 % 4 % 9 % 14 % 22 % % 2 % 3 % 3 % 0 % 0 % % 2 % 3 % 0 % 0 % 0 % % 2 % 2 % 3 % 7 % 0 % % 2 % 3 % 0 % 0 % 0 % % 3 % 1 % 9 % 0 % 6 % % 4 % 5 % 0 % 7 % 0 % Of those, what per centage would you estimate are citizens of: EU/EEA? 0-10 % 49 % 57 % 48 % 21 % 27 % % 5 % 5 % 0 % 0 % 13 % % 5 % 2 % 8 % 14 % 7 % % 3 % 2 % 0 % 7 % 7 % % 1 % 1 % 0 % 7 % 0 % % 3 % 2 % 4 % 0 % 13 % % 3 % 2 % 0 % 0 % 13 % % 5 % 2 % 8 % 14 % 7 % % 6 % 4 % 12 % 7 % 7 % % 20 % 22 % 20 % 29 % 7 %
6 Of those, what per centage would you estimate are citizens of: Non-EU? 0-10 % 56 % 63 % 50 % 45 % 47 % % 10 % 9 % 13 % 18 % 6 % % 6 % 5 % 8 % 0 % 6 % % 4 % 2 % 4 % 9 % 6 % % 5 % 4 % 0 % 9 % 12 % % 2 % 2 % 0 % 0 % 69 % % 6 % 2 % 8 % 18 % 6 % % 2 % 4 % 0 % 0 % 0 % % 4 % 2 % 8 % 0 % 6 % % 7 % 9 % 8 % 0 % 6 % On balance, do you think that immigration has a positive or a negative effect on London s economy? Positive 65 % 62 % 76 % 57 % 72 % Negative 28 % 30 % 18 % 43 % 28 % No effect 7 % 8 % 6 % 0 % 0 %
7 Has your company encountered any problems in complying with immigration / employment law? Yes 8 % 6 % 9 % 14 % 11 % No 85 % 91 % 85 % 71 % 67 % Don t Know 7 % 3 % 6 % 14 % 22 % If yes, which of the following problems have you encountered? Lack of information available about immigration/ employment law Lack of clarity in existing immigration/ employment law Rigidity and strict nature of immigration/ employment law Bureaucracy of immigration/ employment law Costs of compliance with immigration/ employment law Unable to employ required foreign workers due to the rules Other, please specify 20 % 0 % 33 % 0 % 100 % 33 % 14 % 33 % 50 % 100 % 27 % 29 % 33 % 0 % 50 % 60 % 57 % 67 % 50 % 100 % 47 % 43 % 67 % 50 % 50 % 40 % 29 % 67 % 0 % 100 % 0 % 0 % 0 % 0 % 0 %
8 Thinking about immigrants and the jobs they do, to what extent do you or dis with the following statements? Immigrant are important to my company 26 % 21 % 38 % 29 % 28 % Agree 31 % 27 % 32 % 36 % 50 % Dis 27 % 30 % 18 % 36 % 22 % dis 16 % 21 % 12 % 0 % 0 % An ethnically diverse office works better 22 % 23 % 21 % 21 % 22 % Agree 41 % 40 % 39 % 36 % 50 % Dis 27 % 23 % 36 % 36 % 28 % dis 10 % 14 % 3 % 7 % 0 % Immigrants do jobs that British citizens do not want 15 % 19 % 9 % 7 % 11 % Agree 57 % 54 % 68 % 50 % 56 % Dis 24 % 22 % 24 % 36 % 28 % dis 4 % 4 % 0 % 7 % 6 %
9 Immigrants are often better qualified than their British counterparts 10 % 9 % 12 % 14 % 6 % Agree 34 % 35 % 38 % 43 % 17 % Dis 49 % 47 % 50 % 29 % 72 % dis 7 % 9 % 0 % 14 % 6 % Immigrants often work harder than their British counterparts 18 % 19 % 21 % 21 % 11 % Agree 50 % 56 % 47 % 21 % 39 % Dis 27 % 21 % 32 % 43 % 44 % dis 4 % 4 % 0 % 14 % 6 % Without immigrants, London would not be as competitive 21 % 19 % 32 % 21 % 11 % Agree 49 % 50 % 50 % 36 % 50 % Dis 25 % 25 % 18 % 43 % 28 % dis 5 % 5 % 0 % 0 % 11 %
10 The pressure immigrants place on public services in the capital outweighs the benefit they bring to London's economy 12 % 13 % 3 % 21 % 17 % Agree 32 % 34 % 24 % 29 % 39 % Dis 42 % 38 % 56 % 43 % 39 % dis 14 % 15 % 18 % 7 % 6 % The recession means that movement of workers into London should be more restricted 12 % 13 % 6 % 14 % 11 % Agree 38 % 39 % 35 % 36 % 33 % Dis 42 % 38 % 53 % 43 % 44 % dis 9 % 10 % 6 % 7 % 11 % To what extent do you support or oppose Boris Johnson s policy of an amnesty on illegal immigrants which is estimated to give chance to earn citizenship for up to 400,000 people who have been living illegally in London for more than four years? support 9 % 11 % 6 % 0 % 6 % Support 34 % 34 % 41 % 0 % 44 % Oppose 21 % 17 % 15 % 57 % 28 % oppose 31 % 32 % 32 % 29 % 22 % No opinion 6 % 6 % 6 % 14 % 0 %
11 What do you think the impact of the policy of an amnesty for long-term illegal immigrants currently living in London on business in the capital will be? Positive 38 % 38 % 41 % 14 % 50 % Negative 47 % 49 % 41 % 50 % 44 % No effect 15 % 13 % 18 % 36 % 6 % Notes 1. A total of 182 businesses responded to the October 2009 London Business Leaders Panel survey. 2. All sectors of the London economy were represented in the survey including: financial and business services (25 per cent); professions (18 per cent); manufacturing/transport/logistics (19 per cent); retail/wholesale (7 per cent); and other services (31 per cent). 3. The survey was conducted between 13 and 20 October Per centage figures have been rounded to the nearest whole number. 5. For further information on this or any other LCCI economic or opinion research please contact Gillian Econopouly, Public Affairs Manager, on or via at geconopouly@londonchamber.co.uk The LCCI London Business Leaders Panel is conducted in association with ComRes Ltd, the leading name in political and policy related market research. They have a unique set of research tools, including the largest panel of Members of Parliament ever assembled, as well as specially designed panels of professionals - including dentists, academics, defence experts, and MEPs. They provide a range of research services that give their clients access to public opinion polling and bespoke research on almost any scale. ComRes is based in Westminster and they are happy to answer enquiries. Tel:
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