United Kingdom Archives

IMPACT – HIGH

Home Secretary Amber Rudd has asked the Migration Advisory Committee to work with stakeholders to research and produce a report on the impact of Brexit on the U.K. labor market and to give its recommendations on how a future U.K. immigration system should be designed to best align with larger economic strategies.

The Home Office also issued a statement emphasizing that today’s commission does not affect EU and EEA citizens already living in the U.K. and confirmed that “EU citizens do not need to apply for documentation confirming their status now.”

In her letter to the MAC, Rudd also confirmed that the U.K. government will end free movement of EU/EEA nationals on Brexit day (in March of 2019) and reiterated the U.K.’s June 26 offer to the EU on the status of EU/EEA citizens’ rights – a phased approach that would set an eligibility cutoff date and a post-Brexit transition period before requiring EU/EEA nationals to apply for settled status. The rights of EU citizens living in the U.K. and vice versa were a key point in Brexit negotiations last week and the parties jointly issued a chart comparing where they each stand on the issue.

The Home Office is seeking the MAC’s advice on a future immigration system after Brexit that will cover the migration of EU citizens.

The chair of the MAC, Professor Alan Manning, responded that the committee will put out a call for evidence from immigration stakeholders shortly to gather their input. A suggested deadline for the report has been set for September 2018, though there are concerns that this would not leave a sufficient amount of time before formal Brexit.

The MAC has been asked to provide advice and evidence on the following issues:

EU and EEA migration:
- What are the current EU and EEA migration patterns to the U.K., by industry, regional distribution, skill levels, duration of assignments, self-employment/entrepreneur/part-time/seasonal work, and other relevant categories (from 2000 to the present, and potential future patterns if not regulated)?
- How do U.K. employers recruit EU and EEA workers and how does this affect U.K. workers?
- What are the economic and social costs and benefits of EU and EEA migration to the U.K., including fiscal impact on the U.K. economy, public services and infrastructure?
- How would a future reduction in EU and EEA migration be felt across the U.K. economy and society, including a consideration of varying impact on different parts of the U.K.?
- How could businesses adjust if EU and EEA migration were substantially reduced?
- What type of actions could employers and government take and over what timeframe to mitigate the effects of reduced migration?
Future U.K. immigration system:
- What is the current impact of immigration from the EU, EEA and non-EEA on the competitiveness of U.K. industry, including on productivity, innovation and labor market flexibility?
- What impact does immigration have on skills and training?
- Is there any evidence that the free availability of unskilled labor has contributed to the U.K.’s relatively low rate of investment in some sectors?
- Are there advantages to focusing migrant labor on highly skilled jobs or across the entire skills spectrum?
- Does the shortage occupation list need to be amended to include skills shortages at lower skills levels than the NQF6?
- What lessons can be learned from the approach taken by other countries?

Background: The Migration Advisory Committee is an independent group of economic experts that periodically is commissioned to provide advice on government policy. The committee is expected to put out a call for evidence to immigration stakeholders shortly, take evidence, provide interim reports, and produce a final report and conclusions by September 2018.

BAL Analysis: The commissioning of the MAC and forthcoming call for evidence are welcome developments. BAL will be engaging with businesses and individuals on each of the above issues, and expects to submit a package of responses and recommendations to the MAC that highlights business concerns and needs.

This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.

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IMPACT – MEDIUM

What is the change? The Home Office has published a statement of immigration changes that will require its officers in certain cases to consider alternative sources of income or financial support in determining whether a U.K. citizen or settled person meets the £18,600 minimum income for purposes of sponsoring a non-EEA family member. If successful, the non-EEA family member will be granted entry on a 10-year track to settled status (instead of five years), with the potential to apply for the five-year route if they subsequently meet the minimum income requirements.

What does the change mean? The change does not affect Tier 2 workers or points-based migrants or European nationals and their family members; however, the new policy will benefit some family unification cases for U.K. citizens and residents who do not otherwise meet the income threshold.

Implementation time frame: The Home Office will use the new criteria beginning Aug. 10, regardless of when applications are filed.
Visas/permits affected: Spousal visas and other Appendix FM visas.
Who is affected: U.K. citizens and residents applying for a non-EEA spouse, partner or child to join them in the U.K.

Background: The policy change comes in response to a Supreme Court ruling in MM (Lebanon) & Others in February that upheld the minimum-income requirement but also demanded that the Home Office allow more flexible proof of alternative sources of income to address the harsh results of applying an absolute income threshold.

The new rules only apply in “specified circumstances,” namely:

When the minimum income requirement is not otherwise met, and
When it is evident that “exceptional circumstances” in which refusal of the application would breach the applicant’s human rights because it would result in unjustifiably harsh consequences for the applicant, their partner or child under 18.

If the two conditions are met, the Home Office will consider the following forms of alternative funding sources:

A credible guarantee of sustainable financial support from a third party.
A genuine job offer or self-employment for the applicant/ non-EEA spouse.
Any other credible and reliable source of income or funds available to the couple.

Applicants must present verifiable documentary proof of the alternative sources. Home Office decision-makers will make assessments on a case-by-case basis and must consider certain factors in determining whether the alternative sources are genuine, credible and reliable.

BAL Analysis: The change does not affect Tier 2 workers or points-based migrants or European nationals and their family members, but helps to relieve a harsh rule that affects some low-earning British citizens and permanent residents.

This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.

The U.K. government released its proposed offer on EU citizens’ rights last week. While the proposal on EU citizens’ rights does nothing to immediately change the status of EU nationals currently living and working in the U.K., it does offer insight into the type of immigration regime and requirements the U.K. government is contemplating for EU nationals. In light of the new proposal, BAL anticipates a simpler process for EU nationals to apply for permanent residence as well as several other changes.

To better understand the changes that EEA nationals can expect from the recent proposal and which issues will require further negotiation, please read BAL’s full Brexit Bulletin here.

The following is a roundup of recent developments concerning Brexit negotiations and the United Kingdom’s withdrawal from the European Union.

News Summary

The U.K. government released its proposed offer on EU citizens’ rights last week. Given the lukewarm response by the EU’s Brexit negotiator, the talks have a long way to go to bridge the differences between the two sides. Splits are also appearing within Prime Minister Theresa May’s cabinet over whether a hard or soft Brexit is the best approach to preserve continuity for U.K. businesses.

While the proposal on EU citizens’ rights does nothing to immediately change the status of EEA nationals currently living and working in the U.K., it does offer insight into the type of immigration regime and requirements the U.K. government is contemplating for EEA nationals, and provides some clues as to how employers and EEA employees may begin planning for an eventual deal on citizens’ rights.

BAL anticipates the following changes:

The U.K. government is likely to introduce a simpler process to apply for permanent residence. This is being referred to as “settled status.” It is proposed that this document will be required, even by those already holding an EEA permanent residence card. BAL believes this could be subject to change.
Irish nationals will continue to be exempt, as they are currently, from requirements of applying for residency status.
A cut-off date will be established and any EEA national arriving after this date will be subject to the work permit scheme in force at that time and will not benefit from the transition provisions for EEA nationals. This date is proposed to be between March 29, 2017 and Brexit day (estimated March 29, 2019).
EEA employees who arrive before the cut-off date will be allowed to apply for settled status after five years’ residence in the UK or apply for limited leave to remain (a type of visa with an expiry date) and settled status thereafter.
EEA employees will not find themselves immediately out-of-status on Brexit day, as the U.K. government has signaled it will provide a grace period of up to two years post-Brexit that would enable them to continue working while they apply for immigration status.

BAL recommends:

Employers should continue to track and document EEA nationals’ dates of lawful presence in the U.K. for purposes of proving five-year residency.
Employers should continue to review talent acquisition plans and their reliance on EEA national employees in light of Brexit.
Employers should reconsider whether to financially support their employees obtaining a permanent residence card at this time, given that the current process is lengthy and document-intensive, and they will likely be required to repeat the process (under a streamlined system) in the future.
Companies planning to move new EEA hires to the U.K. should consult BAL about the timing of such moves and the risks of employees losing future rights to reside.

Immigration

Where the UK and EU stand on citizens’ rights

The U.K.’s proposal, released June 26, confirms that the government seeks to end free movement rights of EU nationals post-Brexit. After Brexit day, EU nationals would be required to apply for an immigration status.

The proposal indicates that the U.K. and EU remain deeply divided on several key issues involving citizens’ rights. Below is a summary of where the parties currently stand on citizens’ rights.

Issue	UK position	EU position
Right to reside	EU nationals who arrive before a cutoff date and who accrue five years of U.K. residency will be granted permanent residency (“settled status”). Those arriving before a cutoff date who haven’t reached five years may apply for temporary residency until they accrue five years. Those arriving after the cutoff date but before Brexit day will have a grace period of two years to acquire a work permit or leave the country.	EU nationals and family members who have resided in the U.K. during its membership in the EU should retain rights to reside under EU law in perpetuity.
Cutoff date	Cutoff date would be negotiated and should fall between March 29, 2017 (Art. 50 trigger date) and Brexit day (estimated March 29, 2019).	Cutoff date should be no earlier than Brexit day.
Who is covered	EU nationals would be required to apply for and obtain either settled status, limited leave to remain leading to settlement under the new proposals or another immigration status under U.K. law after Brexit day.	EU nationals and their non-EU family members, regardless of nationality, should retain current rights after Brexit. Those arriving in the U.K. after Brexit day (and likely any transition period) would be subject to new rules.
Irish citizens	Irish nationals would not be required to apply for settled status. Their rights as immediate permanent residents would be preserved under the Common Travel Area arrangement and the Ireland Act 1949. Brexit would also not affect the rights of Northern Ireland under the Belfast Agreement.	The position of Irish citizens is the same as other EU nationals, but the EU acknowledges the different status they have under U.K. domestic law.
Non-EU family members	Family members joining EU citizens before the cutoff date would be eligible for settled status in due course (even if the five years falls after Brexit day). Those arriving after the cutoff date would be subject to the same criteria as British citizens applying for family members, including a more restricted definition of eligible “family members” and a minimum income criterion under U.K. laws.	EU nationals who have resided in the U.K. during its membership should retain all EU rights relating to their family members. Under EU law, family members include children up to the age of 21 (18 in U.K. domestic law) and includes parents and other extended family members.
Reciprocity	Any offer on EU citizens’ rights in the U.K. is contingent on reciprocal treatment of U.K. citizens in the EU.	The EU recognizes that U.K. citizens currently in the EU should retain their existing rights, and seeks reciprocal guarantees of the rights of EU citizens in the U.K.
Enforcement	EU citizens’ rights would be codified in U.K. law, and enforced by British courts, not the European Court of Justice.	The European Court of Justice would continue to hold jurisdiction over EU nationals and family members.

Politics

Responses to UK’s offer

The responses to the U.K.’s offer signal that many of the proposals are unlikely to be accepted by the EU. The EU’s Brexit negotiator Michel Barnier said on Twitter that “more ambition, clarity and guarantees [are] needed.” Labour Party leader Jeremy Corbyn called the proposal “too little, too late.” And the3million organization representing EU nationals in the U.K. said the proposal “has done very little to lift anxiety among those most affected.”

Hard v. Soft Brexit

Inside Theresa May’s cabinet, divisions are emerging over her hardline Brexit approach. Brexit Secretary David Davis advocates a hard break from free movement, from the single market and customs union, and from the jurisdiction of European courts. Chancellor Philip Hammond, concerned about business disruption and hitting companies with sudden tariffs and staff shortages, is pushing for a softer Brexit, with a longer transition period (up to four years) during which single market and customs union membership would continue.

Preparing your Company

BAL views the U.K. proposal as setting a baseline for further negotiations, and the goalpost will continue to shift as Brexit talks ensue and the EU makes a counter-offer. The U.K.’s offer falls far short of the EU’s stated positions on citizens’ rights, and, as a result, an eventual deal could look far different from the proposal. Nevertheless, the U.K. proposal contains some key elements that suggest how employers and EEA nationals may approach Brexit planning at this time. Employers are not encouraged to pursue residency applications for EEA nationals under the current system, and should take a wait-and-see approach as the government proposes to roll out a streamlined application process. However, BAL recommends that companies continue to track current EEA national employees and assess the timing and EU-makeup of their talent acquisition plans.

Should you have any questions or require more information on how BAL can help with Brexit planning, please contact us at uk@bal.com.

The Brexit Bulletin has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.

IMPACT – HIGH

Today, the U.K. government published details of its proposal on how it will treat EU citizens in the U.K. in light of Brexit proceedings, including proposals on how EU citizens would apply to remain in the U.K. following formal withdrawal. The proposal, titled “Safeguarding the Position of EU Citizens Living in the UK and UK Nationals Living in the EU,” is the first written offer from the U.K. government addressing the contentious issue of the status of EU citizens.

BAL reads the policy set forth by Theresa May and the Home Office as a minimum baseline of rights for EU nationals after Brexit and expects the EU to push significantly for greater rights during negotiations. EU Brexit negotiator Michel Barnier responded to the proposal stating that the EU’s goal on citizens’ rights is to maintain “the same level of protection as in EU law” and to guarantee those rights, “more ambition, clarity and guarantees [are] needed than in today’s UK position.” Therefore, BAL anticipates additional negotiating and additional shifts before EU nationals have full clarity on their future status in the U.K.

Key points:

The proposal does not apply to Irish nationals; their status as immediate permanent residents will continue and they will not need to apply for further status.
All other EU nationals will need to apply for a new residence status (“settled status”) via a new simplified and “modern” process.
To avoid a “cliff edge,” there will be a grace period (likely two years) after Brexit, during which time EU nationals will need to apply for this new status.
There will be a cut-off date for eligibility (likely to be the date of Brexit but stated to be anywhere between March 29, 2017 and the day of Brexit). Those in the U.K. before the cut-off date will have the right to accrue five years’ residence needed for settled status. Those who arrive afterwards will not.
Those with five years of residence in the U.K. on or before the date of Brexit or end of the grace period can apply for settled status and those without five years of residence by the end of the grace period will need to apply for limited leave to remain (a visa with an expiration date).
Current EEA permanent resident status will not be sufficient to prove their rights to remain in the U.K. after the grace period. An additional, albeit streamlined, application will be required from every EEA national.
Family members joining after Brexit would be subject to U.K. laws on the families of settled persons after the expiration of the grace period – this means high costs and far tougher criteria.

BAL anticipates that given the U.K.’s proposal, the following areas will be likely areas of change and a focus for EU negotiators:

The EU is likely to seek greater protection of existing rights for family members of EU nationals. As is, the U.K. proposal would leave EU national family members who seek to join their EU family member after Brexit unable to qualify under the stricter U.K. legislation currently in place.
EU negotiators are also likely to focus on protecting existing documented rights, as the U.K.’s proposal would require EU nationals who have already applied for and received a vignette attesting to their permanent resident status to apply again.
The cut-off date is likely to fall on or close to Brexit day, as the U.K. wants a cut-off date that falls between March 29, 2017 (Article 50 trigger date) and the date of exit (estimated March 2019), while the EU is pushing for the cut-off date to be no earlier than Brexit day.
The cost burden of applying for settled status and/or work authorization post-Brexit will be an important factor and negotiating point that will impact EU nationals and companies sponsoring them.

BAL Analysis: The U.K. offer is merely a proposal at this point and is likely to change as the EU negotiates its position. The proposal indicates that EU nationals in the U.K. would need to re-apply for their residency status either under a new voluntary system pre-Brexit or as a legal requirement post-Brexit; as such, they may wish to discuss with a BAL professional whether to undertake the laborious application process at this time.

This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.

IMPACT – MEDIUM

Days after Brexit negotiations opened, U.K. Prime Minister Theresa May has made an offer to EU leaders on the issue of EU citizens’ rights – an issue that is a priority for both sides and affects 3 million EU citizens in the U.K. and 1.5 million Britons living in the EU.

The offer would create a new “settled status” for EU citizens who have lived in the U.K. for five years to remain permanently and enjoy equal rights to U.K. citizens. A cutoff date would be set, after which EU nationals would no longer be automatically eligible for settled status.

May rejected the EU’s position that the cutoff date should be Brexit day (estimated March 29, 2019), and instead indicated that the cutoff date would be negotiated and should fall sometime between the date the U.K. triggered Article 50 (March 29, 2017) and Brexit day. EU citizens who arrive before the cutoff date will be given a grace period to reach the five-year residency prerequisite. And those arriving after the cutoff date but before Brexit day will be allowed approximately two years to obtain a work permit or leave the U.K.

The prime minister made the overture while speaking after a dinner at the EU leaders summit in Brussels, calling it a “fair and serious offer.” The deal would require the EU to reciprocate by giving the same rights to U.K. citizens living in the EU. May also said that she did not want to see families split up, indicating that family members could be included in the offer.

The EU’s negotiating position is that all EU citizens who have lived in the U.K. while it was an EU member, and current and future family members, should enjoy a continued right to settle after the U.K. leaves the bloc.

In her speech in Brussels, May also rejected the EU’s stance that the rights of EU nationals should continue to fall under the jurisdiction of the European Court of Justice, indicating that U.K. courts would hear cases of EU nationals under U.K. law. May’s hard Brexit plan would remove the U.K. from the jurisdiction of the European Court of Justice.

BAL Analysis: May said that the offer was intended to provide “as much certainty as possible” to EU citizens in the U.K., but the parties remain divided on several key issues regarding citizens’ rights and, without a known cutoff date, EU citizens in the U.K. remain uncertain about their rights to remain.

This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.

IMPACT – MEDIUM

Brexit negotiations are set to begin Monday between U.K.’s Brexit Secretary David Davis and the EU’s Brexit negotiator Michel Barnier while a political cloud hangs over Prime Minister Theresa May in the U.K.

The meeting will set out the structure of talks to follow in months to come, and will focus on the rights of EU nationals in the U.K. and vice versa, the financial settlement and other issues related to the divorce. The EU’s position is that the separation agreement must be resolved before future trade relations can be discussed. According to the BBC, EU officials have said that the U.K. has agreed to this approach, but Davis is not budging on wanting divorce and trade talks to occur simultaneously.

An early resolution on citizens’ rights would provide certainty to the more than 3 million EU citizens currently living and working in the U.K. and more than 1 million Britons living in the EU.

At home, May’s political future is uncertain. Following a shocking election defeat, she is in negotiations to form a fragile government with Northern Ireland’s Democratic Unionist Party. Blamed for running a lackluster campaign that failed to connect with ordinary voters, May now faces criticism for not meeting with victims of an apartment building fire in West London that killed more than a dozen residents last week, and her budget cuts are being scrutinized as a possible contributor to unsafe conditions leading to the fire.

Meanwhile, Conservative MP Brandon Lewis has been appointed Minister of State for Immigration for the new U.K. government. Having originally opposed Brexit, he is now a supporter of May and voted against unilaterally guaranteeing the rights of EU citizens to remain in the U.K. He reiterated that May has vowed to reduce net migration to the tens of thousands but has refused to say whether he agrees with the pledge, according to British media.

BAL Analysis: While the U.K. government’s priorities will become clearer by the end of June when the Queen’s Speech lays out the new government’s priorities, the Conservatives’ minority government is expected have a weakened hand in negotiations. It is hoped that an early decision will be made on the rights of EU nationals already living in the U.K. or arriving ahead of Brexit, to give much needed certainty to individuals and employers alike.

This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.

IMPACT – HIGH

Nearly one year after voting to leave the EU, U.K. voters have handed a stunning defeat to Prime Minister Theresa May by voting out the Tory majority, weakening her hold on the government and complicating Brexit negotiations between the U.K. and the EU, which are set to begin in 10 days.

The Conservative Party is expected to end with 318 seats, leaving a hung Parliament with no party commanding the 326 required for a governing majority in the House of Commons. Jeremy Corbyn, whose Labour Party picked up 32 seats for a total of 262, called for May to resign. However, May announced she will work with the Democratic Unionist Party, which now holds 10 seats in Parliament, to form a government.

May claims that a Conservative government supported by the DUP will provide certainty, but with Brexit talks due to commence during the week of June 19, delays to the negotiations are likely. The loss of a majority government could force a softer Brexit or make the prospects of no deal more plausible. “Hard Brexit went in the rubbish bin tonight,” former Chancellor George Osborne said in televised remarks as exit polls came in.

EU leaders expressed concern that Brexit talks would stall. “We need a government that can act. With a weak negotiating partner, there’s the danger that the negotiations will turn out badly for both sides,” said European Commission member Guenther Oettinger. The U.K. is under a two-year deadline to complete a deal and exit, having already started the clock when May triggered formal withdrawal procedures in March. European Council President Donald Tusk said on Twitter that there is “no time to lose” in starting Brexit negotiations to avoid a no-deal.

On Friday, May resisted mounting pressure to step down, insisting that only her party had the legitimacy to govern and to bring certainty and the ability to lead Britain forward at this crucial time. She announced she will form a government with the support of the small Democratic Unionist Party in Northern Ireland. The DUP, led by Arlene Foster, is pro-Brexit but opposes a hard Brexit and does not want to see a hard border between Ireland and the U.K. The fragile partnership could put pressure on the Tories to negotiate for a soft Brexit in which the U.K. would retain some free movement and membership in the single market.

May gambled that calling a snap election three years early would secure a mandate for pursuing the hard Brexit she promised that would take the U.K. out of the single market and end free movement between the EU and U.K. Initially, May was expected to win convincingly but her double-digit lead dwindled as the campaign closed.

The Labour Party won big gains, having run on an anti-austerity economic platform, and the election result could be seen as a victory for Corbyn and a signal that May will need to establish a new vision for Brexit. Labour supports Brexit but rejects a hard break, calling for the U.K. to retain the benefits of the single market and customs union and to immediately and unilaterally guarantee the existing rights of EU nationals living in the U.K.

BAL Analysis: May has said she will “get on” with Brexit but there is doubt that her hard Brexit strategy could be workable given its seeming rejection by the voters, as well as the DUP’s likely position favoring a soft Brexit and the fact that any Brexit deal will be subject to parliamentary scrutiny where the Tories do not hold a majority. May’s hand in negotiations has been weakened while the hand of those who advocate a soft break from the EU has been strengthened.

May now has just over a week to formally strike a deal with the DUP, as well as establish a new government and re-align her vision for Brexit. BAL will be reporting on Brexit developments and the impact on business as news unfolds.

This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.

IMPACT – MEDIUM

U.K. Visas and Immigration has changed its processes for handling enquiries from customers and immigration agents.

Key Points:

Phone enquiries from outside the U.K. Effective June 1, phone numbers and hours of operation have changed for customers applying from outside of the U.K. UKVI has contracted with a third-party partner, Sitel UK, to take visa enquiries. Customers will be required to pay for phone enquiries the same way they did before the change, either by credit or debit card. Those who do not have a credit or debit card can pay through a trusted third party.
Email enquiries from outside the U.K. Effective June 1, customers contacting UKVI by email will be charged £5.48 per email, including the initial email and any follow-up emails. Customers will pay for emails by entering their card information before their emails are sent.
Enquiries from within the U.K. There are no changes for customers contacting UKVI from within the U.K. or to sponsor someone on a visa or ask about premium services.
Additional information. Additional information is available on this website.

BAL Analysis: UKVI customers with visa enquiries should follow the instructions above or contact their BAL professional.

This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.

IMPACT – MEDIUM

Voters will go to the polls June 8 in an election that could shape the United Kingdom’s immigration programs for years to come.

The U.K. is set to begin formal negotiations with the European Union on the U.K.’s departure from the EU after the country triggered Article 50 in March. Prime Minister Theresa May called the snap election in April, hoping to strengthen the Conservative Party’s majority and bolster her Brexit negotiating hand. May has sought to put Brexit at the heart of the campaign from the beginning, saying political “game-playing” threatened to undermine the U.K.’s break from the EU.

“Division in Westminster will risk our ability to make a success of Brexit,” May said in April, “and it will cause damaging uncertainty and instability to the country.”

May’s once-commanding lead in the polls has narrowed significantly, however. And voters will now have their say on what path the government should take on Brexit and other immigration issues. The parties differ substantially on their positions.

The Conservative Party: May has outlined plans for a “hard Brexit,” where the U.K. would leave Europe’s single market and regain control over migration from Europe. The Conservative Party’s manifesto also called for bringing net migration to the U.K. down to the “tens of thousands per year,” doubling the annual fee on companies that employ non-EU nationals to £2,000 per worker and promising to prevent a second referendum on Scottish independence until after the U.K. leaves the EU. The pledge to dramatically reduce migration to the U.K. has been a Conservative Party mantra since 2010 and is viewed by many as unrealistic, but was nonetheless included in the Conservatives’ platform once again.
The Labour Party: Labour is pledging to scrap the Conservatives’ approach to Brexit. The party said in its manifesto that it would immediately guarantee existing rights for EU nationals in the U.K. It rejected what it calls “bogus immigration targets” in favor of developing new migration systems with input from business, trade unions, the devolved governments and other stakeholders. Labour says it accepts the Brexit referendum result, but that it would reject May’s hard Brexit approach and would work on “retaining the benefits of the Single Market and the Customs Union.”
The Liberal Democrats: The Liberal Democrats are trying to position themselves as the strongest alternative for voters who wanted to stay in the EU. Their manifesto says they would put another referendum before U.K. voters, giving them the option to accept or reject the final agreement the U.K. reaches with the EU. This could create additional uncertainty, but it would give the public the final say on the best approach for Brexit. The Liberal Democrats also favor a unilateral guarantee of rights for EU nationals in the U.K., remaining in the Single Market, retaining freedom of movement and respecting the interests of Scotland, Wales and Northern Ireland during Brexit negotiations.

The Conservatives, Labour and the Liberal Democrats all say they want to avoid a hard border between the Republic of Ireland and Northern Ireland; however, depending on the election outcome, they may differ in their negotiating approach with the EU on this issue. The EU has also said it does not want a hard border with between Ireland and the U.K.

The U.K.’s smaller political parties are also using the election to advance their agendas. The Scottish National Party is campaigning to give Scottish voters the chance to leave the U.K. once the terms of the Brexit deal are known. The right-wing UK Independence Party is pushing for a “one in, one out” immigration policy, aiming to reduce net migration to zero in a five-year period.

BAL Analysis: The election could have significant consequences for how the U.K. will approach negotiations with the EU. May had hoped to solidify support behind her by calling for the snap election, but the move was risky. Even if May wins the election, if Labour leader Jeremy Corbyn puts up a better-than-expected showing, May’s negotiating position may not be strengthened and could even be weakened. BAL is closely following the election and particularly the potential Brexit and immigration consequences and will continue updating clients on important developments.

This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.