UK aims to cut immigration yet eyes new investor visa for strategic sectors

The UK was drawing up plans for a special visa for foreigners who invest significant sums in Britain, as Prime Minister Keir Starmer’s government seeks to blunt the economic blow from recent tax hikes and wider curbs on work permits.

Ministers were considering proposals for an investor visa open to people willing to fund sectors seen as strategically important by Starmer’s administration, such as artificial intelligence, clean energy and life sciences, according to people familiar with the matter.

The visa plans were at an early stage, subject to change, and being considered alongside making existing visa routes easier for investors, said the people, who spoke on the condition of anonymity.

The preparatory work on a new investor visa comes against the backdrop of Starmer’s self-declared priority of boosting the British economy and a backlash over efforts to roll back “non-dom” tax breaks for wealthy foreigners who live in the UK.

Starmer’s government has seen a flurry of Britain’s richest residents leave the country due to the tougher tax rules implemented by Chancellor of the Exchequer Rachel Reeves in April.

Starmer’s administration is also trying to make up for the economic hit from its decision to hike the national insurance payroll tax at Reeves’ first budget last October, a move that has caused a downturn in hiring and hit business confidence, as well as a broader clampdown on visas announced this week.