US visa hike spells good news for UK tech

The Trump Administration has announced a clampdown on the H1-B visas that US firms have historically used to get foreign talent into the country. Changes include a potential $100,000 application fee that could put workers off even considering the country.

British firms are priming themselves to attract talent put off by the rule changes. Many are hoping the UK’s Skilled Worker Visa could be the carrot that overseas workers turn to.

The UK’s Skilled Worker Visa has its own application fees, which currently range from £769 to £1,751 (depending on duration and job type) plus an annual Immigration Health Surcharge of £1,035. Still, that’s a far cry from Washington’s six-figure proposal.

What are the H-1B changes in the US?

In a fiery and hyperbolic proclamation published in September, US President Donald Trump announced his intention to make it far more difficult for workers to get a H-1B visa.

Taking aim at technology companies in particular, he declared that “abuse” was not only costing Americans jobs but also alleged that they were being “forced to train the foreign workers who were taking their jobs”.

Not only this, but the number of H-1B visas being issued was (according to Trump) a “…national security threat by discouraging Americans from pursuing careers in science and technology, risking American leadership in these fields”. He also pointed to alleged nefarious actions of H-1B-reliant outsourcing companies including visa fraud and money laundering.

The President has proposed a $100,000 fee per application alongside changes to the salary requirements for incoming workers.

America’s loss could be UK’s gain

The British Government has already signalled that it is going to act to attract the talent put off by the US stance.

In September, at the opening of Revolut’s new HQ in London’s Canary Wharf, Chancellor Rachel Reeves said that the UK was making plans to make entry easier.

“While President Trump announced late last week that it will make it harder to bring talent to the US, we want to make it easier to bring talent to the UK,” she said.

Now a report by the Financial Times is suggesting that businesses here – and also in Canada – are already reaping the benefits.

Husayn Kassai, founder of London-based Quench.ai, told the newspaper, “We were getting second league picks. These changes open a window to the top tier of talent.”

The report also interviewed a Canadian founder who said that skilled workers might before have simply transited through his country; are now coming back for work after US visa issues.

How could UK founders benefit?

Businesses in the UK have long been bemoaning talent shortages.

As has been widely reported, there is a tidal wave of US investment coming into the UK for AI technology, and the Government is pushing hard to make the country an AI leader.

However, businesses can’t innovate without the right employees. This is where lowering fees and making visa processes simple could really help British businesses.

The Financial Times report does have caveats, though. Firstly, the UK is not the only country vying to attract talent. Other European countries are also well aware of the potential to gain skilled workers. Secondly, many countries, including our own, have seen anti-immigration rhetoric increase in recent years and this might well put applicants off applying.

There is also a chance that US businesses might just simply hire staff to work remotely therefore circumnavigating the H1-B visa issues.

Despite this, businesses looking for specific, skilled workers to fill roles have everything to gain by widening their search for talent to take advantage of any tech investment coming our way; and the Government’s focus on driving innovation.