Visa fee hike 'will hit smaller firms hardest'

Businesses will have to pay a fee for migrant employee visas, under government plans announced yesterday.

Under the new points-based migration system (PBS), companies that employ legal migrant workers will be charged an administration fee.

Business lobbies argue that the move will hit smaller firms the hardest, because the same flat fee will apply regardless of whether a firm needs work visas for one or 50 workers.

"Some smaller firms could see [fees] go up by as much as 580%," said Confederation of British Industry (CBI) deputy director-general John Cridland.

Up until now, many business organisations had been supportive of the PBS as a flexible method of managing economic migration.

"Business accepted last year's rise of 135% in skilled work permit fees on the basis it would fund improvements to the immigration system," Cridland added. "There's been little progress in developing better employer support but the government has still imposed further cost increases."

"By seeking to recover far more than the cost of processing the application, the government risks putting up a barrier to firms hiring people with the skills they need to grow and create jobs for the good of the whole economy."