New immigration rules may damage economy:UK

England--New immigration rules will damage the struggling economy, business chiefs warned yesterday.

Foreigners from outside the European Union will be expected to leave after five years and domestic staff, like cleans, maids and cooks, may be barred all together.

The changes unveiled yesterday come on top of the immigration cap, a strict new limit on non-EU workers.

Businesses said it would stop them bringing in workers with the skills they need.

And the British Chambers of Commerce warned of the perils of the new policy, expected to result in tens of thousands fewer people coming here to live.

Spokesman Dr Adam Marshall said: “Turfing out valuable migrant workers turned down for settlement would be incredibly disruptive to companies of all sizes, and to economic recovery.

“It could also deter skilled workers from coming to the UK in the first place.”

At the moment, immigrant workers can stay for three years, then apply for a two-year extension and ask to be allowed to remain here after their five years are up.

Reducing net migration is not just about reducing the numbers coming here; it is also about increasing the numbers who leave after their initial stay," she said. "Only tier one [the most highly skilled route] will give a pathway from entry to settlement for investors and entrepreneurs. We expect most tier two migrants will return home at the end of their stay."

Ministers hope the package will prevent those who arrive in Britain to fill a temporary labour shortage from applying to settle permanently. May said she would soon be publishing proposals to change the rules for those coming to Britain for family reasons, such as marriage.

But Dr Adam Marshall of the British Chambers of Commerce said the immigration system had to protect the economy as well as the borders.

"Turfing out valuable migrant workers who are turned down for settlement would be incredibly disruptive to companies of all sizes, and to the UK's economic recovery," he said. "These proposals could also deter some skilled workers from coming to the UK in the first place. The criteria for which migrants do get settlement rights must reflect business needs and the economy, as well as political considerations."

Habib Rahman, of the Joint Council for the Welfare of Immigrants, warned the proposals would create a "guest workers" scheme in Britain.

"The guest workers will have a very restricted right to settle in the UK and will have fewer rights when they are here. It will open them up to exploitation and lead to a two-tier workforce in Britain.The restrictions on legitimate avenues to settle is bound to lead to increasing irregularity and overstaying."

Sir Andrew Green of MigrationWatch, which believes immigration levels are too high, said the plan would provide an incentive for employers to train British workers rather than take skilled foreign workers "off the shelf.