New ‘start-up visa’ to speed up UK entry for entrepreneurs

Ministers on Tuesday announced plans for a new “start-up” visa for entrepreneurs, reflecting growing disquiet over the effects of the UK’s restrictive visa policies.

The new visa class would replace one intended solely for graduates and would make the visa process “faster and smoother” for entrepreneurs coming to the UK, the Home Office said.

Sajid Javid, home secretary, announced the plans as part of London Tech week, a series of events promoting the UK’s technology sector. He said the UK could be proud it was a leading nation when it came to technology and innovation but that it needed to do more to attract businesses. “Our migration system plays a key part in that. 

“This [new visa] will help to ensure we continue to attract the best global talent and maintain the UK’s position as a world-leading destination for innovation and entrepreneurs,” he said. 

However, the plans fell short of the comprehensive remodelling of the visa system for professionals that many business leaders have been calling for.  

Mr Javid’s announcement came a day after the Financial Times reported that 1,946 IT professionals from outside the European Economic Area had been refused visas since November because of restrictions on the availability of so-called “Tier 2” visas for professionals. The sector was one of the worst affected after medicine — 2,360 applications from doctors were rejected because of restrictions in the same period. 

The Home Office said the new visas would become available from spring next year and further details would be announced “in due course”. It added that applicants would require sponsorship from a university or an approved business. 

Seamus Nevin, head of policy research for the Institute of Directors, said the announcement was a sign that the government was finally starting to recognise the importance of ensuring that the UK was open for business. 

“Reforming the UK entrepreneurs’ visa system to make it easier and quicker for those people looking to move here to start a business, create employment and wealth is a very positive step,” Mr Nevin said. 

Ian Robinson, a partner at Fragomen, a specialist immigration law firm, said the new visa was a “great initiative” but expressed hope that Mr Javid would soon act to remove public sector workers such as doctors from the Tier 2 system altogether.

Mr Javid has pledged to examine this proposal — which would free up visas for other workers — and is expected to announce a shake-up as early as this week. 

“We need to get to a point where immigration is about more than trying to hit a numerical target,” said Mr Robinson, referring to the government’s target to bring net annual immigration down below 100,000 a year.