`Banks, accountancy and law firms to find it particularly trough’ 13th September 2010: Less than a week after London Mayor Boris Johnson called for a major rethink on Government’s policy of placing a cap on immigration, it has now emerged that he has shot off a communication to home secretary Theresa May.
In the communication, he has expressed concern over the economic impact of the cap on migrant workers from outside the EU.
Johnson has, in fact, agreed on the BBC’s Andrew Marr show it was reasonable to try and get a grip on immigration. But the problem with the cap was that companies, particularly accountancy firms, banks and law firms, would face extreme hardships in getting the staff needed to keep London’s economy going.
Calling for a ‘major rethink of government policy’, the London Mayor has already warned that plans to place the cap on the number of migrants to Britain will damage the economy.
The assertion, an apparent blow to David Cameron’s authority, came in response to the government’s consultation on imposing a cap on immigration.
Lobbying on behalf of the City of London, Johnson had elaborated: ‘A major rethink of Government policy is required’ as the cap would ‘have a significant negative and disproportionate impact on London’.
The City of London seeks to lure top talent from around the world to its boardrooms. In fact, the City has already lashed out at the proposal. Already, law and other organisations have come out to say the cap will prevent the City from flourishing.
The London Mayor said it will ‘put the economic recovery at risk by creating skills gaps and placing London at a competitive disadvantage in the global competition for talent and inward investment’.
Arguing that the foreigners make a ‘substantial contribution to the UK economy’, he asserted businesses were ‘unanimous in their opposition and hostile to the proposal’.
‘They warn that the limit will damage small, medium and large businesses, prevent inward investment, talent and trade opportunities coming to London, and thereby materially damage London’s competitiveness,’ he said.
The temporary cap imposed earlier this year was ‘already causing businesses significant recruitment problems’.