Press Release: ASI responds to migrant benefit curbs

Commenting on David Cameron's immigration speech, Deputy Director of the Adam Smith Institute, Sam Bowman, said:

The Prime Minister is right to praise immigration and we welcome the fact that he is pulling back from crude number-based targets, which have no place in a free market economy. And it is a huge relief that he does not want to end freedom of movement within the EU, which would be disastrous.

Benefits tourism is much less of a problem than most people believe, because benefits are already quite tightly restricted and most immigrants want to work. But if restricting things like tax credits, child benefit and social housing reduces people’s fears about immigration, so be it.

The two big reasons the UK has attracted so many EU migrants recently is that our economy has been doing better than expected and the Eurozone has been doing much worse than expected. Combined immigration from France, Spain, Portugal and Italy alone has exceeded 100,000 over the past year.

The economy has proved more than able to absorb these and other migrants, and to do so without hurting employment for native Britons. That is exactly what most economists would predict. But along with reforms to benefits we should make it easier for student and highly-skilled non-EU immigrants to come to the UK. Restricting access to the welfare state may be wise – restricting access to our labour markets is not.

Notes to editors:

For further comments or to arrange an interview, contact Kate Andrews, Communications Manager, at [email protected] / 07584 778207.

The Adam Smith Institute is an independent libertarian think tank based in London. It advocates classically liberal public policies to create a richer, freer world.

TEN report "Made in the UK" features in the Times Higher Education Supplement

TEN's latest report, Made in the UK: Unlocking the Door to International Entrepreneurs, is featured in the Times Higher Education Supplement:

While 42 per cent of the 1,600 international graduate students polled by the National Union of Students said they wanted to set up a business after graduation, only 33 per cent wanted to start one in the UK.

Almost one-third also thought that the processes in place for international students to work once they have finished studying in the UK was worse than other countries, according to the report, titled Made in the UK: Unlocking the Door to International Entrepreneurs, which was published on 27 November.

The report, which was written in partnership with The Entrepreneurs Network thinktank, appears amid growing concerns that international students are choosing to study in the US or Australia.Opportunities for graduate employment in the UK have become more limited, following the abolition in 2012 of the post-study work visa, which allowed graduates to work for two years.

Read the full article here.

The survey found that the UK is losing its talented international students with entrepreneurial ambitions to other countries. Although nearly half, 42%, of international students intend to start up their own business following graduation, only 33% of these students, or 14% of the total, want to do so in the UK.

Press Release: Returning the East Coast mainline to the private sector is the right decision

Commenting on the franchise of the East Coast mainline rail route, Head of Research at the Adam Smith Institute, Ben Southwood, said:

Returning the East Coast to the private sector is the right decision. Franchising might not be the ideal solution but it has been consistent with 20 years of improvement in rail.

We may regret that the system is not perfect, which could require a market to pick the right organisational form, but we know what the solution isn't, when looking at what happened when the state took a leading role in rail, 1918-1995.

With the exception of the National Express overbid of 2007-2009, private companies have run the East Coast mainline well—GNER saw rising satisfaction throughout its 1996-2007 tenure.

In any case the line is uniquely easy to run profitably: it has few commuter passengers and is mainly used for occasional long journeys.

Notes to editors:

For further comments or to arrange an interview, contact Kate Andrews, Communications Manager, at [email protected] / 07584 778207.

The Adam Smith Institute is an independent libertarian think tank based in London. It advocates classically liberal public policies to create a richer, freer world.

Migrant entrepreneurs are shunning the UK - Annabel Denham writes for CityAM

Programmes Director of The Entrepreneurs Network, Annabel Denham, writes on the findings of TEN's latest survey, Made in the UK: Unlocking the Door to International Entrepreneurs, in CityAM. The survey found that the UK is losing its talented international students with entrepreneurial ambitions to other countries. Although nearly half, 42%, of international students intend to start up their own business following graduation, only 33% of these students, or 14% of the total, want to do so in the UK.

Our new report, Made in the UK: Unlocking the Door to International Entrepreneurs, conducted with the National Union of Students, shows just how beneficial retaining international talent could be: as many as 42 per cent of current international (non-EU) students intend to set up their own businesses following graduation. But our research also reveals a worrying disconnect between potential and policy: just a third want to found their business in the UK, and just 18 per cent think the processes in place for post-study work in the UK are better than in other countries.

More must be done to encourage these students to start up companies in Britain when they finish their studies, and to this end the government needs to reform the graduate entrepreneur visa, introduced in 2012 to try to plug the gap left by ending the post-study option.

Read the full article here.

Press Release: Survey finds visa system is failing international graduate entrepreneurs

A ground-breaking survey reveals that the visa system is failing international graduate entrepreneurs who want to start a business in the UK. The report, Made in the UK: Unlocking the Door to International Entrepreneurs, released by The Entrepreneurs Network in partnership with National Union of Students (NUS), surveyed 1,599 graduate international students.

The survey finds a significant proportion of international students have entrepreneurial ambitions; however, in a competitive global economy, the UK isn’t the only option:

• Although nearly half, 42%, of international students intend to start up their own business following graduation, only 33% of these students, or 14% of the total, want to do so in the UK.

The Tier 1 (Graduate Entrepreneur) visa was set up in 2012 to encourage international graduates to start their businesses here. However, international students surveyed aren’t convinced by it:

• Just 2% of respondents intending to start a business following graduation applied for the UK Tier 1 (Graduate Entrepreneur) visa, with almost two thirds, 62%, saying they didn’t even consider it.
• Less than half (46%) of respondents think their institution is certified to endorse them for a Tier 1 (Graduate Entrepreneur) visa, while 43% are not sure, despite 101 of the 163 UK Universities being certified by the Home Office.
• Only 18% think that the UK has better post-study processes in place for international students than other countries; 32% think it is worse than other countries.

Based on these and further findings, the report puts forward nine recommendations for government, including:

• Removing the Tier 4 ban on self-employment for those working within an institutional programme (curricular or co-curricular) or other accelerator.
• Allowing UKTI-approved accelerators to endorse international students in their programmes under the Tier 1 (Graduate Entrepreneur) scheme.
• De-coupling the risk for educational institutions in endorsing international graduates for Tier 1 (Graduate Entrepreneur) visas from institutions’ Tier 4 license. This should be made explicit in the official Home Office guidance and in the way the Home Office applies its audit procedures for institutions.
• Reinstating a post-study work visa, de-coupled from the sponsor system, to allow international students to explore markets and industry before finalising their business idea for the Tier 1 (Graduate Entrepreneur) application. In fact, 81% of the respondents considering starting their own business are interested in the possibility of permanent residency under the Tier 1 (Graduate Entrepreneur) visa.

Philip Salter, Director of The Entrepreneurs Network, commented:

This report shows that our visa system isn’t supporting the entrepreneurial ambitions of international graduates.

In its current form, the Tier 1 (Graduate Entrepreneur) visa isn’t fit for purpose. We are training some of the world’s best and brightest young people at our world-class universities only to push them to set up their businesses overseas.

Lord Bilimoria CBE, founder of Cobra and Chancellor of the University of Birmingham, commented in the Foreword to the report:

As ever, it is the government’s attitude to immigration and student visas that is the most damning. Many students continue to feel a sense of alienation from the government, and we must continue to press for a more welcoming and attractive environment.

It is also damaging that the government continues to include international student numbers within the immigration figures, although the whole notion of an immigration cap is harmful. The reintroduction of the Post-Study Work Visa for postgraduates is rightly seen as a vital policy.

Alex Macpherson, Head of Ventures at Octopus Investments, commented:

Governments across the globe are considering ways to encourage the smartest graduates with the most potential to root themselves in their countries to develop ideas, create jobs and ultimately build world changing companies.

The growth in entrepreneurship that we’re seeing in the UK, in our schools, universities and business community, along with the development of new accelerators and increased sources of venture funding has put the UK in a strong, internationally competitive position to attract and retain some of today’s most talented and entrepreneurial minds. If we want the UK to continue to develop global billion dollar businesses then we need to ensure this remains the case and do everything that we can to encourage international students with entrepreneurial ambitions to remain on our shores and start businesses here.

Notes to Editors:

For further comments or to arrange an interview, contact Kate Andrews, Communications Manager, at [email protected] / 07584 778207 or Philip Salter, Director of TEN, at [email protected] / 07919 355290.

The Entrepreneurs Network is a cross-party think tank designed to bring entrepreneurs to the forefront of political discourse and help make Britain the best place in the world to start a business.

The Entrepreneurs Network is based within the Adam Smith Institute and is supported by Octopus Investments, one of the UK’s fastest growing fund management companies specialising in smaller company investing.

Ben Southwood debunks the McKinsey obesity report on Share Radio

Head of Research at the Adam Smith Institute, Ben Southwood, debunks the McKinsey report that found obese people cost the UK £47 billion a year on Share Radio.

Press Release: NIC Bill could send honest taxpayers into financial ruin

Commenting on the second reading of the National Insurance Contributions Bill, taking place in the House of Lords today, Director of the Adam Smith Institute, Dr Eamonn Butler, said:

The National Insurance Contributions Bill, which is in the Lords today, still maintains provisions for HMRC to issue "Accelerated Payment Notices" in disputed tax cases; a power that could send innocent citizens into financial ruin.

Under this new legislation, HMRC can force taxpayers to hand over disputed National Insurance funds before a court rules that the money is owed; people could see their homes sold and finances bankrupted, before being found innocent in a court of law.

Those who are struggling financially or who are unable to procure proper defence will be the easy targets of the new legislation; and those who have used tax planning arrangements that HMRC now deems questionable or illegitimate will have to undertake expensive action to defend their legal behaviour.

HMRC has become accountable only to itself; it is able to decide when and how much tax must be dished out from taxpayers, with a court's ruling only working in the after-math of the decision. This aspect of the NIC Bill fundamentally undermines the right of British citizens to be innocent until proven guilty and sets a dangerous precedent for more powers to be devolved to unaccountable agencies in the future.

Notes to editors:

For further comments or to arrange an interview, contact Kate Andrews, Communications Manager, at [email protected] / 07584 778207.

The Adam Smith Institute is an independent libertarian think tank based in London. It advocates classically liberal public policies to create a richer, freer world.

Dr Eamonn Butler argues against the EU's cap on bankers' bonuses on CNBC

Director of the Adam Smith Institute, Dr Eamonn Butler, highlights the problems with the EU's decision to uphold the cap on bankers' bonuses on CNBC.

Dr Eamonn Butler discusses the NHS staff strike on BBC radio Sussex

Director of the Adam Smith Institute, Dr Eamonn Butler, highlights the problems with today's NHS strikes over pay raises on BBC radio Sussex's breakfast show. Listen to the interview here. (Starts 02:11:30)

Press Release: This is not the right time for another NHS pay claim

Commenting on tomorrow’s (24 November 2014)  four-hour NHS staff strike, Director of the Adam Smith Institute, Dr Eamonn Butler, said:

The decision to hold a second strike over pay is a serious misjudgment on the part of the unions that have decided to join in. Average pay in the UK grew just 0.1% last year, and many businesses are hanging on by the skin of their teeth. But NHS pay has been rising since 2012.

55% of NHS staff already get an annual 3% rise: so the government is saying that any extra cash for wages should go to the workers who do not get this. So it is proposing a 1% rise for the others, but not an extra 1% on top of the existing 3% increments.

Extending the 1% rise to all NHS workers is estimated to cost around £300 million. Some 75% of hospitals' budgets is staff costs, so the extra cost that the union proposals would impose on them would mean cutbacks in staff – some 4,000 nurses lost this year, and another 10,000 next year.

The UK has economic growth of 3% but it is still fragile, and there are lots of things that could still spell disaster; and the British government is 1.45trillion in debt, and adding to that debt by another £100 billion a year. This just is not the right time for another pay claim. And certainly not for another Winter of Discontent (with images of ambulance crews dropping ‘non-emergency’ cases off in the snow to find their way home).

Notes to editors:

For further comments or to arrange an interview, contact Kate Andrews, Communications Manager, at [email protected] / 07584 778207.

The Adam Smith Institute is an independent libertarian think tank based in London. It advocates classically liberal public policies to create a richer, freer world.