02.06.2025

UK Government’s immigration plans could be ‘ticking time bomb’ for Scottish construction, with skilled contractors heading south to replace foreign workers

The UK Government’s tough new immigration proposals are “a ticking time bomb” for Scottish construction which could cause an exodus of skilled workers and leave the sector with a massive skills gap, Scotland’s largest trade association has warned.

SELECT says the proposals to raise the qualification standards for foreign workers is likely to see a significant number abandoning the UK and returning home, with Scottish construction workers flooding south to fill the resulting shortage south of the Border.

The electrotechnical body also echoed a shock new report issued this week by insisting that leaving the country “bereft of skills” would also impact Scotland’s transition to net zero, with fewer qualified professionals left to install and maintain renewable technology.

SELECT Managing Director Alan Wilson (pictured above) raised the concerns with First Minister John Swinney during a meeting of Scottish business leaders last week, during which he relayed apprehensions from across the construction sector.

Wilson said: “Raising the thresholds for skilled workers may seem on the face of it to be a laudable aim, but it is likely to be detrimental to recruitment in the major UK population areas and that means workers will be sucked in from places like Scotland.

“In areas such as London, it’s estimated that 50% of the workforce are from abroad, so if they leave, Scottish workers are likely to flood south to take up highly-paid jobs, leaving the domestic construction sector in crisis.

“This could leave Scotland bereft of skills, with no opportunity to top up from abroad, and could lead to the worst of all possible worlds just as we need these skills to fulfil our transition to a net zero economy.

“This ticking time bomb could leave Scotland without enough skilled workers to build the country we need, which is why we had to bring it to the attention of government at the highest level.”

The UK Government published its white paper policy document, Restoring control over the immigration system, on 12 May, proposing changes to make it harder to move to and settle in the UK, with a view to reducing immigration

Under the proposals, Labour is proposing to raise the threshold for skilled workers from Regulated Qualifications Framework 3 (RQF3) – equivalent to Scottish Highers – to RQF6, which is degree level.

Wilson says many existing qualified tradespeople will be outwith the new threshold and insists the move will also be detrimental to recruitment, with firms less willing to recruit apprentices, creating a long-term impact on the sector.

He said: “We are facing a crisis in recruitment in almost all trades which will not be helped by the uncertainty caused by these proposals.

“The construction sector is a vital pillar of the Scottish economy, supporting infrastructure development, housing delivery and the green transition, yet it is experiencing a persistent and growing skills shortage already.

“According to the Construction Industry Training Board, an additional 26,100 workers will be needed across Scotland between 2024 and 2028 to meet demand, yet apprenticeship starts across construction have remained flat, with only around 6,500 new entrants per year.”

Wilson’s warning comes after a new report by Aberdeen & Grampian Chamber of Commerce shows the UK is losing the skills and supply chain needed to deliver net zero, with a growing share of energy sector jobs, investment and innovation shifting abroad.

The 41st Energy Transition Survey of more than 100 firms shows that two-thirds expect to increase their headcount overseas in the next five years, with almost half saying staff were already leaving the UK to work in other energy regions.

Wilson – who chairs the Construction Industry Collective Voice – also pointed out that architecture schools in Scotland, who often rely on fees from abroad, may have to shut down if students choose not to study there as a result of post-qualification uncertainty.

He added: “The uncertainty the proposals contain will be particularly acute for both graduate visa holders completing their training and employers, who may see no reward in investing in graduates from abroad qualifying in Scotland.

“Similarly, students may not choose to study architecture in Scotland because of the uncertainties post-qualification employment. This could have significant knock-on effects for architecture schools who rely on foreign students fees to make the courses viable.

“The worst-case scenario is due to an absence of fees from abroad we can't sustain our own architecture schools, nor have options to attract retain talent from abroad.”

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