Immigration is an economic necessity without which Scotland risks long-term decline
The UK Government’s latest White Paper on immigration reform sets a clear and concerning economic trajectory. While legislative changes will take time, the implications for Scotland’s economy, labour market, and long-term demographic health cannot be overstated.
Immigration policy is not simply a legal or political matter. It is an economic lever. One that must be calibrated to support growth, innovation, and inclusion across the country. Yet, the proposed changes risk placing further pressure on a fragile labour market, making it harder for businesses to recruit the people they need now, and plan for future success.
Every region of the UK has different needs. For Scotland, immigration is not a choice but an economic necessity. This is backed by employers across every sector. Our most recent Scottish Chambers of Commerce business survey revealed how deeply workforce shortages are constraining our ability to grow and invest.
The Scottish Government has sensibly proposed initiatives such as a rural worker visa scheme to address specific geographical concerns. Such place-based migration tools are common in other countries and should be urgently supported by the UK Government if they are serious about enabling growth in every UK nation and region.
Scotland’s demographic trajectory makes this all the more urgent. Our population is ageing rapidly. By 2045, there will be 65% more Scots over the age of 75.
Alarmingly, we are the only part of the UK projected to see overall population decline. This presents a generational challenge: a shrinking working-age population expected to fund and deliver growing health and social care services. The fiscal and social pressures will be enormous.
We must therefore ask: how do we retain, attract and grow our working-age population in the face of these headwinds?
The answer lies in a combination of domestic talent development and bold, progressive migration policy. The evidence is clear: high-performing economies like Canada and Singapore have long embraced liberal migration systems. These countries understand that attracting international talent and offering routes to settlement are not threats to cohesion but are investments in national prosperity. Scotland and the UK should be no different.
Creating a landscape where people want to come, stay and thrive must now become a defining feature of our national strategy. That means aligning policies on housing, transport and digital infrastructure with a clear message: Scotland is open, competitive and welcoming.
This is not just a policy debate but an economic imperative. The decisions we make today will shape the nation our children and grandchildren inherit. Without decisive action to pull the levers which can address these issues, we risk managing long-term decline instead of unlocking long-term potential.
Scotland has the talent, ambition and values to lead the way and with the right tools, including a responsive immigration system, we can unlock even greater potential. We believe there is a real opportunity for the UK Government and Scotland’s business community to work together to design practical solutions that reflect the needs of our economy. By taking a partnership approach, we can strengthen growth, address workforce challenges, and ensure Scotland remains a dynamic and competitive part of the UK economy.
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Originally published in The Scotsman, 18th May 2025.
