Kelly Hardman

If the next phase of UK politics is genuinely about putting power closer to communities, immigration cannot remain outside the conversation. The prime minister has promised “good growth in every postcode” and a stronger role for local leaders in driving regional economies, but that ambition will be difficult to deliver if access to people and skills remain calibrated almost entirely around national averages.

For too long, immigration policy has been framed as a national numbers exercise, with the debate starting with net migration and working backwards, treating economic need, regional labour markets and demographic pressures as secondary. While that may produce simple political messages, it does not produce serious place-based growth.

The new paper shows why Scotland is the clearest test case, with employers calling for a system that recognises Scotland’s economic reality with its different salary levels, ageing population, rural and island workforce pressures and shortages in key sectors.

Scotland’s demographic challenge is about sustaining the working-age population, public services and communities. Sixty-eight per cent of Scottish businesses believe migration is vital to addressing critical skills shortages, while 76 per cent support allowing sectors facing shortages to recruit overseas, and as the Scottish government clearly explains, communities need people, not just skills.

The salary threshold is an obvious pressure point with median earnings for full-time employees in Scotland in 2024 reaching around £38,500 a year. Yet the general skilled worker salary threshold increased to £41,700, with little recognition of regional wage variation. A level manageable in London can become a recruitment barrier in parts of Scotland, even where vacancies are genuine and economic need is clear. That matters for sectors including energy transition, space, defence, agriculture, hospitality, care, construction and tourism. These industries sustain communities and drive Scotland’s economy, yet many roles do not fit neatly into a UK-wide salary or skills framework.

The new paper moves the discussion beyond diagnosis and renews proposals for a Scottish Visa, a community-led Rural Visa pilot and a Scottish Graduate Visa, alongside Scotland-specific flexibility within existing UK routes. None of these proposals are currently law, but they show that a tailored approach can be developed within a UK framework rather than requiring an entirely separate immigration system.

The Devolution (Immigration) (Scotland) Bill provides a clear route into this debate. Introduced by Stephen Gethins MP in April 2025, the bill would transfer legislative competence over immigration to the Scottish Parliament. It may not settle the issue, but it asks the right question: if Scotland’s demographic and economic needs differ, should it have a stronger say over the rules that affect them? Full devolution need not be the only starting point and the Scottish government’s paper sets out models ranging from a UK-designed route for Scotland to Scottish nomination within the existing Home Office system.

A practical next step would be a time-limited, closely evaluated pilot. That could test a Scottish residence condition, regional salary flexibility, a formal role for government, employers and industry bodies in shortage assessments, and stronger post-study options to retain graduates of Scottish institutions. It should also ensure that Scotland’s priority sectors are properly reflected in the Temporary Shortage List, with a responsive mechanism for adding occupations where evidence of shortages emerges.

A more difficult question is how a tailored immigration system could work in practice without a physical border, particularly with remote and hybrid work. The paper acknowledges those challenges and points to a range of mechanisms that already exist, including a Scottish tax code, digital immigration status, right-to-work checks, residence and payroll evidence, and proportionate data-sharing and enforcement. Any pilot would require careful safeguards, clear employer guidance and evaluation, but administrative complexity is an argument for good design, not inaction.

At its core this is an economic competitiveness issue, and as Scotland competes internationally for workers, students, researchers and entrepreneurism, immigration forms part of its overall proposition. Visa accessibility, opportunities for family members and a credible path to settlement all influence where people choose to build their careers and lives. The key question is whether the current framework is sufficiently aligned with Scotland’s workforce needs and long-term economic priorities.

The debate ultimately centres on whether a single immigration framework can adequately serve regions with markedly different economic priorities, labour market demands and demographic profiles. Scotland’s demographic challenge, salary profile and industrial strengths differ. If the UK government is serious about place-based growth, immigration flexibility should form part of the economic toolkit - and Scotland is the place to start.

Kelly Hardman is a director at global immigration advisers Fragomen in Scotland. This article first appeared in The Scotsman.