As a result of Britain leaving the EU free movement of labour will end on 31 December 2020. The new legislation is set to limit or ban low-skilled immigrants to post-Brexit Britain if they earn less than £25,600 per annum.
The survey found two in five business leaders (41%) think a points-based immigration system will have a ‘negative impact’ on the hospitality industry. According to the survey business leaders feel it will be harder to fill roles in an industry that depends on overseas labour.
Phil Tate, CGA group chief executive, said: “A points-based system could dramatically affect access to labour, which would hurt investment, weaken the high street and—because we know that service and customer satisfaction are closely intertwined—ultimately reduce the pleasure of eating and drinking out.
“Our Business Leaders’ Survey shows the strength of feeling about freedom of movement in our industry and should remind the Government of the damage it could do to hospitality if these proposals go ahead.”
The CGA Business Leaders Survey received responses from 174 industry leaders working at chief executive, chair and director level.
Mike Shipley, vice president of analytics at fourth, added: “This latest announcement on immigration brings much cause for concern across all sectors in the hospitality industry.
“Furthermore, this doesn’t take into consideration the specific nuances of the hospitality industry, such as tips, which are not included in the calculations for the new thresholds.”