Figures just published by the UK Home Office reveal that in the fourth quarter of 2015 there was a fall from the third quarter in the number of Tier 1 Visas for the UK being granted. Curiously, exactly the same number of Tier 1 (Investor) Visas was granted between October and December 2015 as there was between July and September: 46. And Tier 1 (Entrepreneur) Visas were slightly down, from 213 in Q3 to 199 in Q4.
The number of Tier 1 (Investor) Visas which was granted in the whole of 2015 was well down on the previous year, which would seem to indicate that the UK Government’s decision to raise the threshold for funds to be invested in order to qualify for the Visa, from £1m to £2m, which was implemented in November 2014, has had a significant effect. In 2014, 1,172 Tier 1 (Investor) Visas were issued; in the whole of 2015, just 192 were issued.
This may win the UK Government friends among those who are concerned merely over levels of immigration; but it represents a significant loss to the Treasury. Tier 1 Investors contributed over £1bn in investment in 2014; this more than halved to under £400m last year.
The Tier 1 (Investor) category saw a much smaller drop in numbers, from 1,087 Visas in 2014 to 918 in 2015.
Those receiving the Tier 1 (Investor) Visa in Q4 2015 continue to come from countries of origin with an established record of applying for such visas. The largest groups saw nine granted to citizens from the Russian Federation; eight from China; and seven from Brazil.
As for Entrepreneurs, the largest single number of successful applicants in the fourth quarter came from Pakistan, with 21. A total of 19 US citizens received Tier 1 (Entrepreneur) Visas; 17 came from China; and there were 14 each from Hong Kong and Iran, the latter perhaps being a precursor to the lifting of sanctions against Iran which came into effect in January 2016. It will be interesting to see whether that becomes a trend in 2016.
But those looking for trends in all Tier 1 Visas will be watching carefully for the changes which the UK Government is expected to introduce to the Immigration Rules in April. It is not yet clear exactly what these changes will be, but analysts suggest that a separate visa route for talented entrepreneurs looking to establish start-up businesses in the UK may be introduced; assessments may be made by industry experts; and there may even be an annual limit on the total number of visas available.
The Migration Advisory Committee has recommended that changes be made to the Tier 1 (Entrepreneur) category in order to improve the quality of entrepreneurs entering under this route and thus maximise the economic benefit to the UK.
