Guidance on New Government Immigration System

Brexit is expected to have a considerable impact on the construction industry in the UK and on firms across Europe that have links to the UK. Business Immigration experts from leading law firm, Walker Morris, Suzanne Treen and Shabana Muneer, discuss the key considerations for businesses in the sector ahead of the new points-based immigration system coming into play from 1 January 2021.

The construction sector represents 10% of total UK employment and is a key driver of jobs and economic growth, however, it is facing challenges as the country edges closer to the new immigration system coming into play. The sector has one of the highest proportion of migrant workers within its labour force^[i], although the share of migrant workers varies across regions with an ONS^[ii] report finding 8% of the UK and 28% of the London construction workforce are EU nationals. It is therefore imperative for businesses in the sector to prepare for the changes now to minimise the impact on their workforces.

According to the Construction Industry Brexit Manifesto[iii], the Government must view construction as a strategic industry as, without it, Ministers will be unable to meet their plans for the delivery of ambitious infrastructure projects. The Government’s decision to implement immigration changes from January 2021 has resulted in criticism from groups like the National Federation of Builders (NFB), which has insisted firms will need “at least two years to adapt to any new immigration system”^[iv] so it is important that businesses act now to adapt as quickly as possible to the new rules.

Though the changes are already impacting heavily on the industry, the Government maintains that the new system will be more streamlined and accompanied by simplified rules and guidance for businesses looking to recruit workers from the EU however, that may be of little comfort for sectors such as the construction industry which, historically, have been accustomed to recruiting from the EU without any restrictions.

What’s new?

The Immigration and Social Security Co-ordination (EU Withdrawal) Bill, which will form the legal basis of the new system, has yet to become law but the aim of the guidance is to prepare employers and applicants alike for the upcoming changes. The guidance confirms free movement for EU nationals will end at 11pm on 31 December and changes will take effect. Key points to note include:

• EU migrants arriving in the UK from 1 January 2021 will be subject to the new immigration system.

• The existing Tier 2 (General) route will be replaced by a new Skilled Worker route. Tier 2 (Intra-Company Transfer) will remain in place with some adjustments.

• Existing sponsors will automatically be granted a new Skilled Worker licence or Intra-Company Transfer licence and will not need to make a further application.
• Existing Tier 2 (General) migrants who need to make a new application following the closure of that route will do so under the Skilled Worker route.

Many low paid jobs that require a high level of skill are not covered by the new system, and employers will not have access to the same number of workers as they have under freedom of movement, so they are being encouraged by the Government to invest in homegrown talent and technology. According to the Home Builders Association, the housing supply in the UK has grown 74% from 2013 to 2017 and is expected to grow further over the next few years. The Construction Skills Network estimates that a further 168,500 new jobs will be created in the industry between 2019 and 2023[v]. Many organisations such as the Construction Industry Training Board[vi] have already begun developing strategies to address post-Brexit challenges and created training programmes to attract people to the industry.

A key difference between the Tier 2 (General) and the Skilled Worker routes, and one that will be welcomed by the sectors, is the lowering of the required skills level from degree level (RQF 6) to A-level equivalent (RQF 3), bringing a number of previously excluded roles within the scope of sponsorship. In the construction industry, this includes builders, carpenters, welders, plumbers, and electricians.

The salary threshold for Skilled Workers will be lowered from £30,000 to £25,600 per annum, with new entrants able to enter on a lower salary than their more experienced counterparts, provided it does not dip below the lower floor of £20,480 per annum. While there are still certain mandatory criteria for Skilled Workers which will earn an applicant a fixed number of points, the new system introduces tradeable points for certain attributes such as salary, relevant PhD qualifications and shortage occupation roles.

The annual cap under the current Tier 2 (General) route will be suspended and employers will no longer have to carry out the Resident Labour Market Test, which, coupled with lower salary and skill thresholds, should make it easier to recruit migrant workers to skilled roles than it currently is. However, the extension of the points-based system to EU workers is still a huge shift from the current regime, under which there are presently no skills and salary restrictions on recruitment from the EU. Crucially, the new regime will also require migrants to satisfy minimum English Language requirements to be eligible for sponsorship, which may prove to be a practical obstacle to the recruitment of some EU migrants in the future.

Watch this space

As you might expect, the implementation of the points-based system will be phased, and the Government’s guidance document is likely to be the first of many providing details of the Home Office’s wider plans up to 2025. As part of the implementation of the UK’s fully realised points-based immigration system, the requirements for the main work and study visa categories are expected to be written into the Immigration Rules and published later in 2020, along with more detailed guidance for applicants.

The Home Office retains the ability to widen the number of attributes for which tradeable points may be obtained, and they may seek to do so in response to the country’s economic needs and pressures and the needs and challenges faced by specific sectors.

An unsponsored graduate route will be launched in summer 2021, giving international students the opportunity to stay in the UK to work or look for work after they graduate and an unsponsored route for highly skilled workers is expected to be introduced under the points-based system in 2022. This will allow a small number of the most highly skilled workers to enter the UK without a job offer in place.

What now?

If your business already has a sponsor licence under Tier 2 (General) or Tier 2 (Intra-Company Transfer), no new application is required, although you should familiarise yourself with the changes to the rules which may in some cases mean sponsorship is now possible for roles that were previously excluded. You should also check whether you have a sufficient certificate of sponsorship allocation to deal with the potential increased demand from January 2021. Now is also a good time to make sure the existing licence is up to date, is held by the correct sponsoring entity, contains correct key personnel details etc, and that all Home Office notification requirements have been met.

If your business doesn’t currently have a sponsor licence but may need to recruit from the EU or beyond from January 2021, the Government is actively encouraging licence applications to be made now. As we get closer to the end of the year, more organisations are likely to be submitting applications which is likely to result in increased processing times, and potential delays to recruitment plans.

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[i] http://speri.dept.shef.ac.uk/2020/02/19/restrictions-to-immigration-and-work-in-the-uk-construction-industry/

[ii] https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/internationalmigration/articles/migrantlabourforcewithintheconstructionindustry/august2018

[iii] https://www.london.gov.uk/moderngov/documents/s70098/04%20a1%20FSB%20-%20Manifesto.pdf

[iv] https://www.politicshome.com/members/article/the-construction-industry-needs-at-least-two-years-to-adapt-to-any-new-immigration-system

[v] http://speri.dept.shef.ac.uk/2020/02/19/restrictions-to-immigration-and-work-in-the-uk-construction-industry/

[vi] http://speri.dept.shef.ac.uk/2020/02/19/restrictions-to-immigration-and-work-in-the-uk-construction-industry/

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New COO at Social Profit Calculator

Following a sustained period of growth at the Social Profit Calculator, the organisation is pleased to announce that Sarah Coughlan has been appointed as Chief Operating Officer (COO).

The Social Profit Calculator is a software platform which has been accredited by both Social Value UK and Social Value International. Led by an expert team, the organisation provides a wide range of services to help businesses and public sector organisations accurately to measure the social value they generate.

Ms Coughlan joined the Social Profit Calculator in 2018 in a front-end developer role focusing on working on technical development of the organisation’s products and has worked her way up to Head of Development. In her new role as COO, she will be working with industry leaders on integrating sustainable methodologies for social value into built environment practices.

Sarah Coughlan said: “The importance of social value has been growing over recent years, particularly within the built environment sector, and we’re of course still feeling the impact of COVID-19 at present, so I’m thrilled to be moving into this new role at what is a really interesting point in time.

“As an organisation, we were really pleased to see the government’s new measures for social value announced last month. In the wake of COVID-19, people will need to see the impact of every pound invested and these new measures will mean that central government will – from 1 January 2021 – need to go further than the Public Services (Social Value) Act 2021 to ensure that all major procurement explicitly evaluate social value, rather than just consider it.

“I’m very much looking forward to getting started in this new position and working with the wider team and organisations throughout the industry to make a real, demonstrable change in how we view and measure social value.”

Executive chairman and chief executive officer Gerard Toplass, who is also executive chairman of national framework organisation Pagabo and software solutions organisation Sypro, said: “Since joining the company, Sarah has shown dedication to our customers, the team and the product development that sets us apart from other organisations, so we’re really pleased to be announcing her appointment as COO.

“I look forward to working closely with Sarah, the board and the rest of team as we look forward and work with the wider industry to embed social value at the heart of all built environment endeavours.”

At the same time as Sarah stepping into this new role, Social Profit Calculator’s co-founder Mark Bolger will be standing down from day-to-day operations but will stay involved in the company as a shareholder and contributor.

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Some Funding for Hammersmith Bridge Agreed

The UK’s Department for Transport (DfT) has agreed to funding permanent repairs to the Hammersmith Bridge. DfT Permanent Secretary Bernadette Kelly has confirmed that the Government has agreed to provide ‘some funding’ for permanent repairs, during a Public Accounts Committee Meeting which was held on 15 October 2020.

However, Ms Kelly stopped short of revealing how much of the £141-£163 million repair bill the Government would foot. This comes after Grant Shapps, UK Transport Secretary, formed a Governmental task force to plan the next steps for the bridge.

Kelly said: “I don’t have the exact figure in front of me, but we are now providing some funding to repair the bridge.

“Baroness Vere our Lords peer is leading a taskforce aimed at bringing all parties together to ensure we can make progress on short-term solutions in terms of improving people access [across the Thames], as well as a long-term solution to the bridge itself.”

It has been a struggle to try to find funds for the repairs, as well as trying to find out which body ultimately has responsibility for the upkeep of Hammersmith Bridge.

The full cost of the repairs is expected to be between £141 million and £163 million with local council the London Borough of Hammersmith & Fulham estimating that £46 million is needed just to stabilise the bridge itself. In September, the former Transport for London (TfL) official who masterminded the operation of London’s roads during the Olympics was bought in to oversee repair plans for the bridge.

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Work Begins on Flood Scheme in Stokesley

Construction work on a new multimillion-pound flood defence scheme in Stokesley has begun with preparation work to help manage the ‘river flow’ of the River Leven.

The project is due for completion by Spring 2021 and will improve protection to 509 properties in the town, as well as providing £46 million in economic benefits over the next 50 years. The Stokesley Flood Alleviation Scheme is part of the current six-year capital investment programme which sees Government funding of £2.6 billion to protect 300,000 homes from flooding and coastal erosion between 2015 and 2021.

Beyond 2021 a record Government investment of £5.2 billion has been announced. This will also better protect 336,000 properties, via the creation of around 2,000 new flood and coastal defences in England by 2027.

The Environment Agency also published its Flood and Coast Erosion Risk Management Strategy, a blueprint setting out how it will work with communities to deliver the government’s long term plan.

Leila Huntington, the Environment Agency’s Flood Risk Manager for the North East, said: “We are delighted that work will begin on the Stokesley Flood Alleviation Scheme. This is a project that will benefit residents, businesses, the local economy and local wildlife.

“With the impacts of climate change we are seeing changes in weather patterns and an increase in flood risk. The improved flood defence at Stokesley, which is part of the government’s current flood risk capital investment programme, plays a crucial role in better protecting the wider community from the risk of flooding into the future.”

The contract working on the project is BMMJV, a joint venture between BAM Nuttall and Mott MacDonald with the first part of the programme will see the removal of the ‘downstream flow control structure’, this will enable construction of the new structure in the same location.

The River Leven flow will be closely managed to ensure the watercourse flows normally downstream during the work and flood risk is not increased.

All contractors working on the site will be wearing appropriate PPE and adhering to any social distancing requirements. The work is expected to be complete by the end of spring 2021.

To find out if you are living in a flood risk area and for information on how to sign up for flood alerts please visit the Environment Agency website

Any questions about the scheme should be sent to stokesleyfloodscheme@environment-agency.gov.uk

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Brexit Could Lead to New Dawn for Talent

Lesley McLeod, CEO of The Association for Project Safety writes about how Brexit could signal a new dawn for home grown construction talent in this latest feature.

It is no secret that, personally, I am a passionate European and that I believe Brexit to be an act of self-harm. To me it can never be the sane choice to leave a group made up of our nearest neighbours and constituting our biggest trading partner. I have never thought it could be credible to have a better deal out of the club then for members in it.

But I am equally aware that, if you aggregate the vote across the whole of the UK, my concerns were not the majority view. So, there is no choice for me – and the members of the Association for Projects Safety [APS] for who I work – but to make the most of things.

And there are potential opportunities.

The most likely could be increasing job opportunities across the construction sector at home. This is especially the case as the government has signalled its hope the UK can build its way out of the worst economic consequences of the Covid19 outbreaks.

This, allied to the continuing need to develop new homes and upgrade our national infrastructure, should see more opportunities for skilled trades and build environmental professionals. The trouble is that these workers are not waiting in the employment wings right now.

There have been years of buying in cheaper labour rather than training home-grown talent. It will take time, money and effort to bring on people with the skills to take the place of European colleagues who may be on their way home to Budapest, Bratislava or Barcelona. And experience is not oven-ready overnight.

Set this against the economic reality that construction is often as an indicator of the wider economy and signs that projects are slowing down – particularly in the previous hot house of London and the South East – and perhaps alarm bells should be starting to ring across the country.

In fairness, I ought to offset this with the caveat that perhaps construction work is just signalling the start of a move away from the major urban centres as we seek a more distanced life post-epidemic. There certainly may be a need to repurpose current unloved, unused and unwanted office space to housing.

But, for the jobs we gain, there may be opportunities lost. The UK must continue to recognise the qualifications of EU construction professionals because it would seem highly unlikely that – without reciprocal arrangements – architects or engineers, gas fitters or electricians will be able to work unfettered across the remaining 26-country block. Not least as there will be restrictions on how long – without the appropriate paperwork – people will be able to stay in an EU country.

And the bureaucracy – either way – won’t come without additional red tape for tax, insurance or medical cover. It cannot be the unlocked revolving door we have enjoyed since we joined the community.

Similar constraints will go for other parts of the supply chain too. Materials approved for use in construction across the UK could help grow home markets but close doors to trade – and business growth – with our closest market.

Financing will also involve more headaches as cross-border banking arrangements look like being affected making everything from opening a personal bank account to raising the dosh for a flagship project more complex and more expensive.

And all of this is just the risks you can see on the surface. There is a separate home-grown hidden Brexit threat in the Internal Market Bill a piece of UK legislation that runs in parallel to work on our withdrawal from the EU.

One of the aims of the Bill is to create – across the devolved administrations – a level playing-field for goods and services. Nationalists see this as a land-grab by the Westminster government and a way of diluting the devolution settlements and powers enjoyed in Cardiff, Stormont and Holyrood. Others are more worried by its practical consequences for construction.

Currently, the regulations currently applied in Derby may demand a higher [or even lower] standard than those in Dundee – or Dungiven or Denbigh. The rules will certainly be different wherever you go. And while I have sympathy with the desire to simplify bureaucracy, making business easier across the countries of our islands, I fear the actual impact on the rules that underpin each and every project, large or small.

There is nothing in the legislation to force up rules and behaviours and every time and cost imperative to see standards fall to the lowest level overall.

I fear – if this is not too European – a Dutch-auction of safety standards with everything chased down to the lowest level. This, particularly for members of my association whose driving force is to cut the risks of accident and ill-health associated with all aspects of construction, is a worry. We feel already that we are swimming against a tide that risks overwhelming safety with considerations of cost, the need for speed and the aspirations of aesthetics.

I started this piece with the intention of being even-handed. Of trying to present both sides of the argument. But I just can’t do it. The more I look at the consequences of Brexit the more I think it is harmful to ordinary people, restricting their freedom of movement and limiting their opportunities while, at the same time, making it more difficult to do business with those nearest to us. I see risks in putting up barriers with Europe and removing restrictions across the UK.

Believe me I want to be proved wrong. And I am not forecasting a apocalypse: we will muddle through – just not as well or as easily. I am sure, for many, they will not miss a step or see any difference.

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Funding Secured for Ravenscraig Road Link

Funding has now been secured for new transport linked to open-up the former Ravenscraig steelworks site in Scotland. The site is home to one of the largest regeneration schemes in Europe.

Glasgow City Region Cabinet has approved an investment of £61.9 million for the Ravenscraig Infrastructure Access (RIA) project and North Lanarkshire Council has matched this with £64.3 million, bringing the total to £127.2 million.

The money is to be used to create new and improved transport infrastructure which will connect Ravenscraig North to the M8 and South to Motherwell and the M74.

The proposals include:

• a new dual carriageway from the Ravenscraig Regional Sports Facility to Motherwell, crossing the west coast main line railway, with new provision for walking, cycling and wheeling throughout;
• a new roundabout with traffic signals at Airbles Road and Windmillhill Street, connecting to the dual carriageway;
• completion of the dualling of Airbles Road; and
• the dualling of the A723 from Ravenscraig to the M8.

The next stage in the RIA project will see a submission of a planning application for the southern connections to Motherwell and the M74, this will include a public consultation. First consultation works on the site will create the West Coast Mainline cross and is anticipated to take place in 2022, with construction of the new road to Ravenscraig and roundabout starting in 2023. The dualling of the A723 is planned to start in 2023/24 and work on Airbles Road to start in 2024/25.

This regeneration of the overall Ravenscraig site will see £3.5 billion being invested over the next 10 years.

Council Chief Executive, Des Murray said: “Despite coronavirus, we are continuing to invest in the future of North Lanarkshire, with a clear path for economic growth. Ravenscraig is an important part of our long-term plan as it will bring new homes, schools, businesses, jobs and leisure facilities over the next 25 years. To achieve this, we must invest in new roads and active travel improvements, including cycle routes and public transport links – the Ravenscraig Infrastructure Access project will deliver that.”

The RIA is a key component part of the council’s Plan Lanarkshire Orbital Route, combined with other investment to create a transformational road and infrastructure travel spine through North Lanarkshire. The Pan Lanarkshire Orbital Route will improve connectivity from Motherwell to Cumbernauld across a range of transport modes.

Murray added: “Overall, the Pan Lanarkshire Orbital Transport Corridor will transform the way we use our transport network, encouraging healthy active travel options, creating new opportunities for development and digital infrastructure along the route, and creating potential for low carbon energy networks.

“With the funding from Glasgow City Region City Deal secured, we can now move forward with this exciting new project to transform derelict land into vibrant new communities for the people of North Lanarkshire.”

Within the Ravenscraig site itself, the RIA is one of a number of infrastructure projects the council is working to deliver, including a new seven-hectare park that is currently under construction and, working with Sustrans, new cycling and walking links to Craigneuk, Wishaw and New College Lanarkshire Motherwell campus.

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Ilke Homes Selected for Brownfield Regeneration

ilke Homes are pleased to announce that they have been chosen by Nottinghamshire County Council (NCC) to deliver up to 140 homes on a former brownfield sire in Arnold.

The deal between Ilke Homes and the County Council followed on from a competitive tender process and will see the redevelopment of a nine-acre site in Rolleston Drive, Arnold. The former depot was derelict for six years before being destroyed by a fire in 2017. Innes England advised Nottinghamshire County Council acting as its agent.

This scheme will be the ilke’s third in Nottinghamshire. The homes are to be manufactured in ilke’s factory in Knaresborough, North Yorkshire, before they are delivered to Rolleston Drive.

This marks the first time that NCC has released lands for a factory-built housing development. The local authority also announced last year that it was to support major infrastructure and capital projects costing more than £200 million to help boost prosperity for its residents as well as the local economy. It has so far secured an £11 million grant from Homes England to prepare eight redundant sires that it owns for housing development, to mee the growing housing demand in the county.

Due to the homes being factory-built, it means they are more cost-effective to maintain, are quicker to construction and have a lower carbon footprint than traditional brick houses. They can also be built with less disruption on-site and require fewer complex groundworks, making them an ideal solution for local authorities who want to quickly regenerate surplus brownfield land.

The UK Government has shown its support for modern methods of construction (MMC) in housing, with ilke Homes securing a £30 million investment from Homes England last year, this helped increase the capacity of its factory, as part of a scheme to boost MMC and deliver more affordable homes throughout the UK.

Tom Heathcote, executive director of development at ilke Homes, said: “We’re delighted to have been selected by Nottingham County Council to unlock this important brownfield site.

“Our housing technology means we can quickly deliver a high-quality scheme that brings this derelict site back into productive use and deliver much needed, sustainable family homes for the local community.

“It is our intention to submit a full planning application for an affordable led scheme of 2,3, and 4-bedroom houses by the end of the month”

Councillor Kay Cutts, Leader of Nottingham County Council, said: “We selected Ilke Homes as the purchaser for this site after receiving many bids from different housebuilders and developers during the tender process.

“The re-use of this site for housing will be a huge benefit to the community and ilke Homes already appear to be making progress with their planning application. The sale will realise a notable capital receipt for Nottinghamshire County Council.”

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