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Cabinet split widens over Labour plan to tighten settlement rules

Oct 19, 2026
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Cabinet split widens over Labour plan to tighten settlement rules
Political tensions around immigration intensified after LondonlovesBusiness reported that Energy Secretary Miatta Fahnbulleh has joined Housing Secretary Angela Rayner in publicly criticising Prime Minister Andy Burnham’s proposal to lengthen the qualifying period for Indefinite Leave to Remain (ILR). Fahnbulleh warned that “tougher settlement rules risk undermining social cohesion” in her Peckham constituency, signalling a broader Cabinet push-back against the planned crackdown. The draft policy—part of a wider promise to cut net migration—would extend most economic migrants’ ILR waiting time from five to seven years, introduce stricter salary-progression tests and raise English-language thresholds to A-level standard. Businesses fear the move will deter high-demand talent just as the UK competes with Canada and Germany for AI and green-tech specialists. Multinational HR directors have already voiced concern through the CBI and TechUK, arguing that longer settlement timelines inflate assignment costs and undermine the UK’s attractiveness compared with EU blue-card pathways. In the City, immigration advisers report a spike in ‘early ILR’ consultations as employees race to file before any cut-off date. The policy clash exposes Labour’s tight-rope: demonstrating control over immigration without alienating employers or migrant-community voters. Insiders suggest the Home Office may now model a graded ILR scale—five years for shortage-occupation roles, seven for others—to appease critics. Draft secondary legislation is still expected before Christmas, so companies should monitor parliamentary statements closely.
Source: LondonlovesBusiness

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