UK is open to overseas talent

The UK will make it easier to attract global talent at a time when the US is making it harder, the chancellor has said, in a direct reference to a recent overhaul of American visa policy.

On Friday, US President Donald Trump announced a 50-fold hike in the cost of skilled-worker permits to $100,000 (£74,000), causing confusion as staff from US tech firms rushed back to the USA.

"While President Trump announced late last week that it will make it harder to bring talent to the US, we want to make it easier to bring talent to the UK," Rachel Reeves said on Tuesday.

The BBC understands the government plans to double the number of high skilled foreign worker visas to around 18,000 a year.

Reeves comments come after the UK trumpeted a £150bn tech deal with the US during Trump's second state visit.

Reeves was speaking at the opening of fintech giant Revolut's new global headquarters in Canary Wharf, where the firm said it would invest £3bn in the UK and create 1,000 new jobs.

The firm is something of a test case for the government's hopes to remove regulatory barriers to fast growing international companies.

Last week, Trump caused chaos in Silicon Valley by announcing an overhaul of the H-1B visa system used by the likes of Google, Apple, Microsoft and others to hire top talent from overseas.

Many US tech workers, originally from other countries, who were outside of the US at the time of the announcement then scrambled to fly back - spending thousands of dollars in some cases.

By Saturday, the White House sought to calm the storm, clarifying that the fee applied only to new applicants and was a one-off. Yet, the long-standing H-1B programme - criticised for undercutting American workers but praised by tech firms - still faces an uncertain future.

Trump's wife Melania Trump, Tesla chief executive and former Trump ally Elon Musk, Alphabet chief executive Sundar Pichai, and Microsoft chief executive Satya Nadella all held H-1B visas at one point.

During her speech at Revolut's offices on Tuesday, Reeves was keen to stress the UK's alternative approach.

"London isn't just the capital of the United Kingdom, it is one of the two financial capitals in the world, and we want to differentiate ourselves from other countries around the world by being open to the best talent globally," she said.

"So, while President Trump announced late last week that it will make it harder to bring talent to the US, we want to make it easier to bring talent to the UK.

"We are expanding our global talent and high potential individual visa routes, and we're moving quickly to make those easier to access and more supportive of firms ambitions to bring talent here."

-BBC

Trump hits H-1B visas with $100,000 yearly fee

US President Donald Trump on Friday ordered an annual $100,000 fee be added to H-1B skilled worker visas, creating potentially major repercussions for the tech industry, where such permits are prolific.

The new measure, which could likely face legal challenges, was announced alongside the introduction of a $1 million "gold card" residency program that Trump had previewed months earlier.

"The main thing is, we're going to have great people coming in, and they're going to be paying," Trump told reporters as he signed the orders in the Oval Office.

H-1B visas allow companies to sponsor foreign workers with specialized skills --- such as scientists, engineers, and computer programmers -- to work in the United States, initially for three years, but extendable to six years.

The United States awards 85,000 H-1B visas per year on a lottery system, with India accounting for around three-quarters of the recipients.

Large technology firms rely on Indian workers who either relocate to the United States or come and go between the two countries.

Tech entrepreneurs -- including Trump's former ally Elon Musk -- have warned against targeting H-1B visas, saying that the United States does not have enough homegrown talent to fill important tech sector job vacancies.

"All the big companies are on board," said Commerce Secretary Howard Lutnick, who joined Trump in the Oval Office.

Trump has had the H-1B program in his sights since his first term in office, but faced court challenges to his earlier approach, which targeted the types of jobs that qualify. The current iteration has become the latest move in the major immigration crackdown of his second term.

According to Trump's order, the fee will be required for those seeking to enter the country beginning Sunday, with the Homeland Security secretary able to exempt individuals, entire companies, or entire industries.

The order expires in a year, though Trump can extend it.

The number of H-1B visa applications has risen sharply in recent years, with a peak in approvals in 2022 under Democratic president Joe Biden.

In contrast, the peak in rejections was recorded in 2018, during Trump's first term in the White House.

The United States approved approximately 400,000 H-1B visas in 2024, two-thirds of which were renewals.

Trump also signed an order creating a new expedited pathway to US residency for people who pay $1 million, or for corporate sponsors to pay $2 million.

"I think it's going to be tremendously successful," Trump added.