March 2021 Budget – Helping You Attract The World’s Best Talent

Rishi Sunak and his March 2021 Budget has got people talking about all the implications for business, but the topic that people seem to have overlooked is how he has modernised the immigration system.

Although this may seem like a side note to many, it is a really positive move for businesses looking to attract the very best talent and innovative thinkers; and should be a welcomed announcement from the science and tech industries in particular.

Under the new plans, the UK will be able to attract and retain the most highly-skilled, globally mobile talent – particularly in academia, science, research, and technology through an elite points-based visa system. This new system will be implemented within the next year and should provide a massive boost to business and help fill the growing skills gap within the tech industry. 

How does this affect UK tech?

If we take a look at one of the UK’s fastest-growing sectors within the tech industry – Fintech (According to the accounting firm Ernest & Young, the UK has a 10% share of the global fintech market) – An estimated 42% of Fintech staff in the UK come from overseas, and the sector employs more than 60,000 people and contributes around £7 billion to the UK economy. 

With the British fintech industry relying so heavily on international talent (especially from Europe with Some 28% of employees are from the EU) there have been concerns voiced about how this market would survive the expected talent drain. But, despite both Brexit and Covid, the UK is still the most important centre for Fintech in Europe, and around £3 billion worth of venture capital was invested in UK Fintech companies last year. 

This new move by Rishi, not only shows a big commitment to making the UK a hub of knowledge and innovation but will help to address the talent shortage and also provide an important boost to confidence in the markets – reassuring to those concerned about the UK’s future post-Brexit and encouraging a resurgence of investment in other areas.

A good start, but still more needed…

The UK needs global talent because there is a shortage of people requisite skills especially in certain areas of the tech industry, and the proposed plans will create a world-leading offering and position the UK as the top destination for the most talented in the tech industry and especially the fintech sector aiding the UK’s economy in the form of jobs, innovation and growth.

However, there is also a skills shortage in other sectors, such as Research & Development and academia, which will need to be addressed to encourage the next generation of home-grown talent not just in tech but across the whole economy.

Now, this is not saying this isn’t a good start, it is a very welcomed announcement here at Foundations (especially with us specialising in high-level recruitment the tech industry), and it shows the government is taking the first steps to make the UK a global powerhouse again, but we look forward to the next steps from the government to address the skills gaps within the wider economy and reforms within the education sector to ensure the UK stays a the forefront in nurturing the talent of future.