London's Silicon Roundabout needs more employees with the right skills. Photo: Getty
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Immigration policy is holding back the UK's tech boom

The government's ambitious project of putting coding on the national curriculum is exactly what UK tech needs. But in the short term, immigration policy is holding us back.

One of the biggest economic challenges facing our nation is the need for more qualified, highly-skilled professionals…Yet because our current immigration system is outdated and inefficient, many high- skilled immigrants who want to stay in America are forced to leave . . . Some do not bother to come in the first place.

Signed by executives from the likes of Google, Facebook and Yahoo these are the words of a letter sent to President Obama last year to argue for the relaxation of US immigration controls. It is striking how accurately they apply to Britain today.

Since 2003 Europe has produced $30bn technology startups; 11 of them were created here in the UK. Russia, the second best performer, produced only five.

From fast-food marketplace JustEat to financial technology giant Markit, the UK tech sector is paving the way for a new era of explosive economic growth. But just as it begins to hit full stride — in London 27 per cent of all new jobs are created by technology-focused businesses — Britain’s tech sector is in danger of being hamstrung by a shortage of skills.

My own company, Quill, has a team of 26 and is currently trying to fill 17 vacancies despite growing over 100 per cent year-on-year. The simple truth is that our education system does not cultivate the right skills to satisfy the demands of our burgeoning tech sector.

In fairness, the government has not been idle in the face of this threat; coding will now be a compulsory part of the national curriculum for UK students between the ages of five and 16.

This is a welcome reform and sees Britain leapfrog some of the world’s leading tech-hubs – including the US. But while the coalition’s long-term efforts to boost the supply of homegrown talent are to be applauded, they are not a solution to the short-term problem. The skills gap in this country is hurting British competitiveness now and, if the government fails to act, it threatens to see the UK fall behind.

It’s frustrating that the steps being made by the Department for Education are being countered by the Home Office’s increasingly regressive position on immigration. There is much talk about which political party the rise of Ukip has damaged most; the truth is that Britain’s technology industry stands to be the biggest victim of its influence on the immigration debate.

As things stand, companies looking to bring talent to the UK from outside of the EU must apply for a specialist Tier 2 visa. In 2013 just 10,179 such visas were granted, considerably below the 20,700 cap. Far from reflecting a lack of demand, such figures are testament to the mire of red-tape around the current system, red-tape that hits small businesses – who lack sophisticated compliance infrastructures – disproportionately hard.

According to research conducted by business intelligence company Duedil and the Centre for Entrepreneurs, companies founded or co-founded by migrant entrepreneurs total 14.5 per cent of all UK businesses and employ 1.16m people around the country.

Unless the government does more to recognise the enormous value that migrant talent offers our economy then those benefiting from educational reforms today may not have a world class tech sector to employ them in a decade’s time.

Britain must rethink its attitude to immigration, because as we cast aside the talented migrants seeking to live and work in the UK, our competitors, from Berlin to Bangalore, are welcoming them with open arms.

In 2012, the US reached its high-skill immigration cap of 65,000 in just five days. Our schools have begun a steal a march on their American counterparts; if our immigration system can do the same then perhaps when the next Google is born, it will be on these shores.

Ed Bussey is the founder and CEO of Quill Content

Grant Shapps on the campaign trail. Photo: Getty
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Grant Shapps resigns over Tory youth wing bullying scandal

The minister, formerly party chairman, has resigned over allegations of bullying and blackmail made against a Tory activist. 

Grant Shapps, who was a key figure in the Tory general election campaign, has resigned following allegations about a bullying scandal among Conservative activists.

Shapps was formerly party chairman, but was demoted to international development minister after May. His formal statement is expected shortly.

The resignation follows lurid claims about bullying and blackmail among Tory activists. One, Mark Clarke, has been accused of putting pressure on a fellow activist who complained about his behaviour to withdraw the allegation. The complainant, Elliot Johnson, later killed himself.

The junior Treasury minister Robert Halfon also revealed that he had an affair with a young activist after being warned that Clarke planned to blackmail him over the relationship. Former Tory chair Sayeedi Warsi says that she was targeted by Clarke on Twitter, where he tried to portray her as an anti-semite. 

Shapps appointed Mark Clarke to run RoadTrip 2015, where young Tory activists toured key marginals on a bus before the general election. 

Today, the Guardian published an emotional interview with the parents of 21-year-old Elliot Johnson, the activist who killed himself, in which they called for Shapps to consider his position. Ray Johnson also spoke to BBC's Newsnight:


The Johnson family claimed that Shapps and co-chair Andrew Feldman had failed to act on complaints made against Clarke. Feldman says he did not hear of the bullying claims until August. 

Asked about the case at a conference in Malta, David Cameron pointedly refused to offer Shapps his full backing, saying a statement would be released. “I think it is important that on the tragic case that took place that the coroner’s inquiry is allowed to proceed properly," he added. “I feel deeply for his parents, It is an appalling loss to suffer and that is why it is so important there is a proper coroner’s inquiry. In terms of what the Conservative party should do, there should be and there is a proper inquiry that asks all the questions as people come forward. That will take place. It is a tragic loss of a talented young life and it is not something any parent should go through and I feel for them deeply.” 

Mark Clarke denies any wrongdoing.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.