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UK hoteliers must reevaluate recruitment strategies in light of new immigration proposals

Costs and barriers will go up
Terence Baker
Terence Baker
CoStar News
May 19, 2025 | 2:28 P.M.

The United Kingdom is a small country with a large population.

Yes, there are areas in which there are no one, or very few people, but the perception among many voters — stirred up no doubt by opportunity-grabbing politicians — is that the country must reduce immigration to offset pressures on housing, jobs, schooling, health and other public services.

The Labour Party government has reacted to this, perhaps, itself seeing the threat to its power base from those political parties advocating for more robust policies on immigration.

Some will state it is another nail in the heart of globalization — although that is far from being the result of U.K. legislation alone.

Today in the pages of CoStar News Hotels there is a report on these proposals and what they mean for U.K. hoteliers.

The Office for National Statistics, the government’s official statistical body, said in November that “since 2021, long-term international migration to the U.K. has been at unprecedented levels. This has been driven by a variety of factors, including the war in Ukraine and the effects of the post-Brexit immigration system. Pent-up demand for study-related immigration because of travel restrictions during the coronavirus pandemic also had an impact.”

It's a new government white paper, which is likely to be sped through Parliament with a three-line whip — the expression used to tell a political party’s Members of Parliament not to vote against the wishes of its leadership.

The changes are myriad but mostly consist of increases. Among them are:

· The Immigration Skills Charge is to increase by 32%, a cost that cannot be transferred to applicants.
· There are some exclusions for occupations deemed critical for the country, but handing someone a key from one side of a check-in desk to another probably will not be among them.
· The minimum skill level needed to qualify for a job with sponsorship is rising from that of a good school education to a university graduate education, which will obviously see those without bachelor’s degrees out of the running.
· Graduate-visa applicants will now have six months less time to reach the required salary levels in order to remain in the U.K., from two years down to 18 months.
· Student loopholes are being closed or tightened.
· The qualifying period for skilled workers and other applicants under the points-based system will double from five years to 10 years, although there are some exclusions that likely will be subject to more consultation later this year.
· The level of English-language skills is to be increased.

It is expected that sponsorship costs will double for employers, who now are more likely not to bother with the scheme at all.

This is what is hoped, I assume. British citizenship will take longer to acquire, and fewer people will be in the position to apply, although the people I have spoken to state such increases usually do not deter immigrants in their choice of where to reside, or in their hopes as to where to reside.

Hoteliers need now to analyze what their recruitment requirements are, where they might be able to find employees, and skills, and ways in which they can make the industry more attractive as a place to work and as a career to those already here legally, those able to stay and on the route to legal working status, and to those who might be mulling entering the industry.

That’s a lot of work and vision, but it is worthwhile getting task forces together while the proposals work their way through Parliament and when they are not already law.

The opinions expressed in this column do not necessarily reflect the opinions of CoStar News or CoStar Group and its affiliated companies. Bloggers published on this site are given the freedom to express views that may be controversial, but our goal is to provoke thought and constructive discussion within our reader community. Please feel free to contact an editor with any questions or concern.

Click here to read more hotel news on CoStar News Hotels.