Migrant visa plan for rural Scotland

However, it ruled out introducing a specific lower pay threshold for Scotland or any other part of the UK, saying there should be a “single national salary threshold”, which would take a similar approach to the operation of the national minimum wage.

It pointed out that regional salary thresholds could also be harder to enforce within the migration system because the UK was geographically small, making it easy for a migrant to live in one region and work in another.

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Their report explained salaries did vary by geography with earnings being higher in London than the UK average; by around a quarter. In Wales and Northern Ireland people had lower earnings; by around 10 per cent. But in Scotland they were similar to the UK as a whole.

However, the MAC accepted there could be a case for special treatment for rural areas, which might “face more complex challenges in recruitment and retention of workers”.

It said: “There should be a separate pilot visa for ‘remote’ areas of the UK, part of which could be lower salary thresholds for migrants into those areas. This should only be done with a full evaluation to understand its effectiveness and impacts.”

While the Government advisor recommended cutting the salary threshold for skilled migrants from £30,000 to £25,600 for those coming to the UK with a job offer, it ruled out introducing a specific lower pay threshold for Scotland or any other part of the UK, saying there should be a “single national salary threshold,” which would take a similar approach to the operation of the national minimum wage.

The Scottish Government welcomed the MAC’s proposal for rural pilots but expressed “extreme disappointment” that its report failed to respond to the serious concerns from across all sectors of the Scottish economy.

Ben Macpherson, the Scottish Government’s Migration Minister, said: “The committee recommendations offer little in the way of practical measures to help Scotland address acute issues of depopulation and skills gaps.

“Worryingly, it accepts the proposed changes will cut immigration, reducing the size of the UK population and total GDP.”

Noting how there was a need for a “fundamentally different approach” to immigration in Scotland given the nation’s distinct demographic and geographical needs, Mr Macpherson added: “Devolving immigration powers by introducing a Scottish Visa would allow Scotland to attract and retain people with the skills and attributes we need for our communities and economy to flourish. We urge the UK Government to engage seriously with our proposals, which have widespread support.”

Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, said: “While the MAC’s plan for a reduction in the salary threshold is welcome and the list of eligible jobs has been expanded, it is disappointing that recommendations did not take account of regional salary differences. We believe this risks limiting access to skills for companies in Scotland.

“Employers in Scotland need a migration system that suits regional wage levels and is responsive to Scotland’s unique demographic challenges. Our members have consistently raised concerns that a one-size-fits-all approach across the UK will not meet business and economic needs,” she added.

On Monday, Nicola Sturgeon published her administration’s plan for a Scottish Visa to help the nation cope with an end to freedom of movement after Brexit.

The First Minister proposed the part-devolution of immigration to Holyrood to attract migrants through a cheaper, simpler visa based on Scottish residency and the Scottish tax code.

However, the Home Office dismissed the Scottish Visa idea, making clear immigration would “remain a reserved matter” and noting how different rules around the UK would “massively complicate” the system.

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Prof Alan Manning, the MAC Chairman, said: "No perfect system exists and there are unavoidable, difficult trade-offs.

"The largest impacts will be in low-wage sectors and the Government needs to be clear about its plans for lower-skilled work migration."

Overall, the report warned that replacing freedom of movement with a points-based system could cut economic growth and might only lead to small improvements in standards of living.

It suggested the Government's proposed overhaul of migration rules could have "zero effect" on providing more British jobs for British workers.

Christine Jardine for the Liberal Democrats said: "The Conservatives’ proposals to end free movement will make it harder for our schools and NHS to hire the teachers, nurses and doctors they need.

“As the MAC makes clear, these plans will make the crisis in social care even worse. They will also mean huge amounts of extra costs and bureaucracy for thousands of British businesses. No amount of spin will change that fact,” insisted the Edinburgh MP.

Downing Street said: "The Government will introduce a firmer and fairer points-based immigration system from 2021 that welcomes talent from around the world while reducing low-skilled migrants and bringing overall numbers down.

"We will carefully consider the report before setting out further details on the new system."