Law Society lobbies on City's behalf over new immigration regime

The City has hit out at Government proposals to impose a cap on UK immigration, saying that the move could damage competitiveness of international law firms.

The plans, which would come into effect in April 2011, have been criticised by law firms and the Law Society for reducing the freedom to move lawyers into the UK from international offices.

The Law Society is currently canvassing firms and is set to make contributions to two ongoing consultations by the Home Office and the UK Border Agency's migration advisory committee (MAC) on the proposals, which are both due to close in September.

Law Society chief executive Desmond Hudson (pictured) said: "Just when we are pulling ourselves out of a crippling recession, imposing this cap now will strangle City law firms and in turn hit the businesses they act for. By imposing a cap, there is a mistaken assumption that there will be lawyers of equal expertise in the UK and EU, but it is often the knowledge of a particular overseas jurisdiction which is of value to a firm."

The Law Society has pointed out the risks of severing links with the world's largest economies, including China and India, and argued that migrant lawyers make a significant contribution to the UK economy.

Several law firms are especially concerned about proposals to cap inter-company transfers, which would mean they would have to apply on a case-by-case basis to relocate lawyers within the business as opposed to a current allocated number of transfers.

Baker & McKenzie business immigration specialist lawyer Tony Haque said: "This would mean a loss of certainty for law firms to be able to bring in specialists from other offices. The Government made an election promise to reduce immigration and, while business immigration is not the main problem, it is focusing on this area because it is easiest to reduce."