Key staff may be hit in curb on migrants

Professor David Metcalf, chairman of the Migration Advisory Committee (MAC), said so-called intra-company transfers, which are used by businesses to bring their own people into the country to do specific jobs, were likely to face the “lion’s share” of cuts under tier two of the visa system.

But the National Association of Software and Services Companies (Nasscom), the body representing India’s information technology industries, told MPs any such move would damage the UK’s relations with India.

Prof Metcalf said his committee was going through a “long mechanism” to see whether any reduction should mainly fall on highly-skilled workers, under tier one of the visa system, or sponsored skilled workers, who fall under tier two.

“When we get to the overall reduction we will make suggestions concerning the shortage route, the resident labour market test route and the intra company transfer route,” he said.

“But it’s of the nature of these things that the intra-company transfer route will have to take the lion’s share of this because the other two are absolutely rather small.”

Giving evidence to the Commons Home Affairs Select Committee on how the MAC was assessing the appropriate level for an immigration cap, he said that students and those on family visas would also have to take their share of cuts.

The prospect of a quota being imposed on intra-company transfers, which are exempt under the temporary cap which was imposed earlier this year, was fiercely opposed by businesses, with Prof Metcalf describing the majority of companies as being hostile to the plans.