The UK Government is putting the
interest of big business and foreign service companies
before the interest of the people of this country. These companies are
receiving financial support in the form of tax free allowances which actively
encourages them to bring migrant workers into the UK through intra-company
transfers (ICT) rather than use resident workers or suppliers. The Government's
own independently appointed economists, who sit on the Migration Advisory
Committee (MAC), advised that this practice should stop because of the loss of
tax revenue and the unfair position it puts resident companies and workers in (see
page 260 para 9.166 and 9.167). The Government response to this
advice was to ignore the MAC (Immigration
questions Lord Laird).
The new £24,000 salary limit introduced
in April 2011 for ICT workers entering the UK for upto
12 months will see 92% of advertised IT positions undercut. This is a sector of
the economy which is especially vulnerable to the use of ICT workers who are 'onshored' to the UK. As a result resident jobs are being
lost, skills are being lost and over £250 million in revenue is being lost each
year.
This administration has shown that on
occasion it will reconsider policy and make amendments,
this is a policy area where they should do the same. A number of freedom of information requests can be found here which expose the Government spin and
rhetoric on this issue for what it is.
Even if you are unsure about ICTs, the
loss of revenue and jobs is real. Companies which pay their ICT workers the
market rate for the job will not be affected by changing the current rules and
excluding tax free allowances from the definition of 'salary'.
Help BackTheMAC
and lobby your MP to do the same, you can contact them via www.writetothem.com.