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Some of the UK's most powerful tech entrepreneurs have warned David Cameron against clamping down on immigration

Sam Shead   

Some of the UK's most powerful tech entrepreneurs have warned David Cameron against clamping down on immigration

David Cameron

REUTERS/Peter Macdiarmid

Prime Minister David Cameron.

The UK's most powerful technology leaders are warning Prime Minister David Cameron that their businesses will suffer if he follows through with plans to reduce the number of skilled migrant workers entering the UK from outside Europe.

In an open letter, 235 of the nation's leading entrepreneurs and investors asked the Prime Minister to reconsider plans that will make it even harder for them to employ skilled workers outside the EU.

The people behind the letter, which was orchestrated by Coadec (The Coalition for a Digital Economy), hail from some of the UK's best-known technology companies including Google DeepMind, Citymapper, Shazam, and SwiftKey.

Autonomy founder and billionaire Mike Lynch also gave his signature, as did angel investor Sherry Coutu and sharing economy advocate Debbie Wosskow, both of whom have written reports for the government in the last year and advised it on how to support the UK's digital economy.

It's worth noting that around 20 of the signatories also signed the pre-election tech letter in The Guardian backing the Tories.

One of the most prominent names not to appear on the list of signatories this time round is venture capitalist and government advisor Eileen Burbidge. However, Burbidge has told Business Insider on previous occasions that immigration and allowing UK tech firms to hire skilled talent should be a number one priority for government.

"We absolutely need highly skilled talent," Burbidge said last month. "It's difficult because obviously there's a larger political narrative which is about the stress on social services of an ever-growing population, but I think that what we can do are small measures, small things about making sure that we know where certain pockets exist for need or demand, and how to service that."

Given that Burbidge is now chair of Tech City UK and therefore a government spokesperson, it's likely that she felt she was unable to support a government lobbying effort. However, Business Insider understands that she will be doing all she can in her role as Tech City UK chair and UK fintech envoy to ensure the government doesn't clamp down on skilled immigration.

Following the general election, Cameron's Tory government revealed that it planned to "significantly reduce" the number of skilled workers coming to Britain from outside the EU. He said this was necessary as net migration levels were at record levels.

The letter comes as the government's Migration Advisory Committee consults how the UK can further tighten rules around the entrepreneur visa, which allows those outside the EU to come to Britain and start a business, and the Tier 2 visa, which enables UK technology companies to hire people from outside the EU and bridge skills gaps.

Companies like Google and Facebook rely on the Tier 2 visa to bring staff from their US offices to their London offices.

The government is exploring whether it should raise the minimum salary threshold on the Tier 2 visa so that it only applies to people working at director-level roles.

Kate Unsworth

Kovert Designs

Kovert Designs CEO Kate Unsworth backed the open letter.

Sarah Wood, CEO and cofounder of Unruly, said: "If the government is serious about growing Britain's digital economy and competing on a global stage, it cannot afford to cut off the oxygen that feeds our ecosystem - skilled talent from around the world, drawn to London and the UK precisely because of its diversity, creativity and vitality.

"We simply could not have scaled the business to the size it is today (15 offices, £28.7m revenue) without the programming expertise and language skills of international software engineers and digital professionals from around the world."

Tech City UK estimates that 1.46 million people work in the UK's digital economy, which represents 10% of the UK's GDP, and is the biggest and fastest-growing of the G20, set to hit 12% of GDP next year.

"The UK has become a global tech hub thanks in large part to startup founders, investors and employees from across the globe, including many of us who were not born in Britain but choose to invest our time and talents here," the letter reads.

"We call on you to ensure that any future changes to the immigration system make it easier, not harder, for qualified digital entrepreneurs to come to the UK to start their business, and for growing startups to hire top international talent."

Guy Levin, executive director of Coadec and a former political advisor to the Treasury, said any changes to the immigration system must make it easier, not harder, for digital entrepreneurs to come to the UK to start their business and for growing startups to hire top international talent.

A 2013 O2 report, The Future Digital Skills Needs of the UK Economy, estimated that 745,000 additional workers with digital skills would be needed to meet rising demand from employers between 2013 and 2017. Halfway through that time frame companies are still crying out for talented workers with certain skills.

The letter acknowledges that the government has taken a number of steps to support the UK's digital economy, including giving tax breaks to investors that back startups through the Seed Enterprise Investment Scheme (SEIS), and its support for the sharing economy.

The government also relaxed the rules around the Tier 1 Exceptional Talent visa, allowing companies to hire groups of five people at once and opening it up to those that show "exceptional promise."

Here's the letter itself:

Dear Prime Minister,

We represent a cross-section of the UK's digital startup and scale-up ecosystem, including the founders of Citymapper, DeepMind, JustPark and SwiftKey. The UK has the largest and fastest growing digital economy in the G20, worth over 10pc of GDP.

During the election campaign you argued that the UK should be 'the startup nation in Europe, and one of the great startup nations in the world'. We share this ambition and applaud your government's long-standing support for the UK's tech community. From SEIS to support for FinTech and the sharing economy, you have championed entrepreneurs and innovators in the interest of securing our country's long-term economic growth.

However, finding talent with the right skills and experience we need to grow our businesses remains one of the biggest barriers to achieving that ambition. The UK has become a global tech hub thanks in large part to startup founders, investors and employees from across the globe, including many of us who were not born in Britain but choose to invest our time and talents here. We are very concerned that changes to immigration policy will make it more difficult to attract and recruit the talent high-growth companies need to compete and succeed in a global marketplace.

The government's Migration Advisory Committee is currently examining proposals aiming to further restrict the Tier 2 system of skilled work visas and to reform the Entrepreneur Visa. Further restrictions on skilled migration could restrict the growth of our businesses and hurt the UK's digital economy.

We call on you to ensure that any future changes to the immigration system make it easier, not harder, for qualified digital entrepreneurs to come to the UK to start their business, and for growing startups to hire top international talent.

It is of course also vital that we continue to support the growth of digital skills within the UK, and we stand ready to do our part.

Sincerely yours,

Adam Horner

Co-founder and CTO, Satago

Adrian Lloyd

Founder & Partner, Episode 1 Ventures

Adrian Sevitz

Co-founder, vzaar limited

Alain Falys

Co-founder, Yoyo Wallet

Alasdair McPherson

Partner, Craigie Capital

Alastair Paterson

CEO, Digital Shadows

Alena Dundas

Founder, Gymdeck

Alex Loizou

Co-founder, Streethub

Alex Stephany

CEO, JustPark

Alexander Asseily

Founder, State, Jawbone and Elvie

Alexander Trewby

Co-founder, Divide (acquired by Google)

Alexandra Depledge

Co-founder, Hassle.com

Alexandre Dalyac

Co-founder, Tractable

Alice Bentinck

Co-founder, Entrepreneur First

Alice Taylor

CEO, Makielab

Alicia Navarro

CEO, Skimlinks

Alliott Cole

Director, Octopus Ventures

Amy Lai

Founder and CEO, Wittos

Andrew Evans

Co-founder and CEO, Smart Pension

Andrew Fisher

Executive Chairman, Shazam

Andrew Gibb

Founder, Coldpress

Andrew Hunter

Co-founder, Adzuna

Andrew Jervis

Co-founder, Clickmechanic

Andrew Scott

Founder partner, 7percent Ventures

Andrew Tibbitts

COO, TechHub

Andrius Sutas

Co-founder, AimBrain

Andy Bennett

Founder, Knodium Ltd

Andy Hobsbawm

Founder, EVRYTHNG

Andy Stephenson

Founder, Weekend Box

Aneesh Varma

Founder, Aire

Anirvan Lahiri

Co-founder, The Stay Guru

Ankur Modi

CEO, StatusToday

Anne Johnson

Founder, Cunning Systems

Anthony Eskinazi

Founder, JustPark

Anton Wellenreiter

Partner, Charlotte Street Capital

Azmat Yusuf

Founder, Citymapper

Ben Drury

Co-founder, 7digital

Ben Gateley

Co-founder and COO, The Eleven

Ben Medlock

Co-founder/CTO, SwiftKey

Ben Perreau

Co-founder, Synkio

Ben Whately

Co-founder, Memrise

Bernhard Niesner

Co-founder, Busuu

Bill Earner

Managing Partner, Connect Ventures

Bindi Karia

Startup expert, connector and advisor

Bo Pedersen

Partner, Charlotte Street Capital

Brendan Gill

CEO, OpenSignal

Bruce Beckloff

Managing Partner, Bloc Ventures

Bryce Keane

Founder, Albion Drive

Cecile Baird

CMO, Credits

Charlie Newman

Co-founder, Pinipa

Charlie Osmond

Founder, TripTease

Charlotte Lacombe-Bar

Co-founder, Mooshoo Labs

Chris Dawson

Co-founder, One Utility Bill

Christian Hernandez

Co-founder, White Star Capital

Christopher Hunter

Co-founder, Odyssey Sensors

Colette Ballou

Founder, Ballou PR

Constantin Bjerke

Founder, Crane.tv

Dale Knight

Co-founder, One Utility Bill

Damien Lane

Partner, Episode1

Dan Bladen

Founder, Chargifi

Dan Sutherland

Founder, Carrenza

Daneal Bassiouni

Co-founder, Homefund

Daniel Benamran

General Manager UK, BlaBlaCar

Daniel van Binsbergen

Co-founder, Lexoo

David Cleevely

Founder, Cambridge Angels

David Fogel

Deputy Director, Wayra UK

David Galsworthy

Co-founder and CEO, TechSpace

Debbie Wosskow

Co-founder, Love Home Swap

Demis Hassabis

Co-founder, DeepMind

Devin Hunt

Partner, Founder Centric

Doug Monro

Co-founder, Adzuna

Douglas Bell

Founder, London Innovators

Eamon Jubbawy

Co-founder, Onfido

Edward Chin

Co-founder, Supersolid

Eeswaran Navaratnam

Managing Partner, 01Ventures

Elizabeth Varley

Co-founder, TechHub

Emanuel Andjelic

Co-founder, Squirrel

Emily Forbes

Founder, Seenit

Emma Sinclair

Co-founder, EnterpriseJungle

Eoin Hyde

Co-founder, Innersight Labs

Eric van der Kleij

Head of Level39 & MD Entiq

Evgeny Shadchnev

Co-founder, Makers Academy

Faith Forster

Founder, Pinipa

Felix Leuschner

Founder, Drover App

Florian Stronk

Co-founder, Koyoki

Frank Kelcz

Founder, Excellerance

Gary Thompson

Founder, GoRaise

Gavin Sathianathan

Partner, Kingsley Capital Partners

George Bevis

CEO, TIDE

George Marangos-Gilks

Founder, The Tab

George Spencer

CEO, Rentify

George Whitehead

Chairman, Angel Cofund

Gi Fernando

Founder, Freeformers

Gideon Farrell

Co-founder, Converge

Gil Dibner

Investor

Giles Andrew

Executive chairman and Co-founder, Zopa

Giovanni Charles

Co-founder, Fluently.io

Glenn Shoosmith

CEO, BookingBug

Gus Ferguson

Managing Partner, The Tetrad Consultancy

Guy Levin

Executive Director, Coadec

Haakon Overli

General Partner, Dawn Capital

Harry Briggs

Partner, BGF Ventures

Helen Cammack

Co-founder, interests.me

Henry Firth

Founder, Pingtune

Hermann Hauser

Partner Amadeus Capital Partners and serial entrepreneur

Hugh Collins

Co-founder, Code Kingdoms

Husayn Kassai

Co-founder, Onfido

Hussein Kanji

Founding Partner, Hoxton Ventures

Ilya Levtov

Co-founder, Craft.co

Irra Ariella Khi

CEO, V Technology

Itamar Lesuisse

CEO, Peak

Jack Huang

Co-founder, TRULY Experiences

Jamal MonDesir

Founder, MADFoundry

James Gill

CEO, GoSquared

Jamie Edwards

COO, Kayako

Jason Bolton

Co-founder, Mooshoo Labs

Jeff Lynn

Co-founder, Seedrs

Jennifer Arcuri

Founder, InnoTech Summit

Jenny Griffiths

Founder, Snap Fashion

Jeppe Zink

Partner, Northzone

Jessica Williamson

Programme Director, TechStars

Jo York

CCO/CMO, Reframed.tv

Joe Cohen

Founder, Seatwave

Joe Root

Co-founder, Permutive

Joelle Hadfield

Co-founder, FightsMe.com

John Hackett

MD, ArenaFlowers.com

John Henderson

Principal, White Star Capital

John Spindler

CEO, Capital Enterprise

John Thompson

CEO, UserReplay

Jon Bradford

Co-founder, F6S & tech.eu

Jon Petrides

Co-founder, Guevara & Penda Health

Jordan Emery

MD, Quella

Josh Russell

Partner, Rokk3r Labs

Joshua March

Co-founder and CEO, Conversocial

Julian Carter

Co-founder, EC1 Capital

Julian Ranger

Founder, digi.me

Julie Meyer

Founder, EntrepreneurCountry; CEO, Ariadne Capital

Kate Unsworth

CEO, Kovert Designs

Kevin Price

CEO, Reframed.tv

Kieran O'Neill

Co-founder, Thread

Kristo Kaarmann

Co-founder, TransferWise

Leonard Austin

Co-founder, Ravelin

Lloyd Price

Co-founder, Zesty

Lopo Champalimaud

Co-founder, Wahanda

Luke Lang

Co-founder, Crowdcube

Mads Holmen

Founder, Bibblio

Mait Muntel

Co-founder, Lingvist

Marcus Greenwood

CEO, Universal Basket

Mark Russell

Co-founder, Universal Basket

Mark Ryan

Co-founder, Blooie

Marko Srsan

Programme Operator, TechStars

Martha Lane Fox

Co-founder, Lastminute.com

Martin Bailie

Co-founder, Tailored

Martin Sweeney

CEO, Ravelin

Matt Clifford

Co-founder, Entrepreneur First

Melvin Salas

Co-founder, Leaf.fm

Michael Thornton

Co-founder, Carbon Analytics

Mike Butcher

Co-founder, TechHub

Mike Lynch

Founder, Invoke Capital

Mike Minett

Co-founder and MD, The Positive Ageing Company

Monty Munford

Founder, Mob76

Mustafa Suleyman

Co-founder, DeepMind

Nabil Freeman

Founder, Freeman Industries

Nic Brisbourne

Managing Partner, Forward Partners

Nic Yeeles

Founder and CEO, Peg

Nicholas Katz

Co-founder, Splittable

Nicholas Russell

Founder, We Are Pop Up

Nicholas Sharp

Associate, Passion Capital

Nick Hungerford

Co-founder and CEO, Nutmeg

Nick Lally

Co-founder, Ravelin

Nigel Whiteoak

Founder, LoveCrafts

Oleg Fomenko

Co-founder, SweatCoin, bloom.fm

Oli Ashness

Founder, Simply Cook

Oliver Pugh

Founder, EarlyBird.fm

Patrick Stobbs

Co-founder, Jukedeck

Paul McNabb

Partner, Episode1

Paul Miller

Partner, Bethnal Green Ventures

Paul Slater

Co-founder, Fit Gurus Ltd

Paul Smith

MD, Ignite and Campus North

Pip Jamieson

Founder, The Dots

Prasanna Kannan

Co-founder, Homefund

Pratik Sampat

CEO, iHorizon

Raj Ramanandi

CEO, #1Seed

Rajeeb Dey

Founder, Enternships

Raph Crouan

MD, Startupbootcamp IOT

Rashid Mansoor

Co-founder, Adbrain

Razvan Ranca

Co-founder, Tractable

Reshma Sohoni

Partner and Co-founder, Seedcamp

Rhydian Lewis

Co-founder and CEO, Ratesetter

River Tamoor Baig

Co-founder, Hack Partners

Rob O'Donovan

Co-Founder of The Eleven and CharlieHR.com

Robert Dighero

Partner, Passion Capital

Robin Klein

Co-founder, The Accelerator Group and LocalGlobe

Rohan Luvaglio

Founder and CEO, Bizzby

Ruhul Amin

Co-founder, Onfido

Russ Shaw

Founder, Tech London Advocates

Ryan Kliszat

Co-founder, Verticly

Saasha Celestial-One

Co-founder, OLIO

Sam Mathews

CEO, NEVERBLAND

Sam Michel

Founder, Chinwag

Sam Oakley

CEO, StashMetrics

Sandy Forster

Co-founder, Pinipa

Sanford Dickert

CEO, OWLR

Sarah Cochrane

COO, Vetcloud

Sarah Wood

Co-founder, Unruly

Saul Klein

Founding Partner, LocalGlobe

Sean Seton-Rogers

Partner, PROFounders Capital

Sherry Coutu

Investor and non-exec director

Simon Edwards

Co-founder, Shuttlecook

Simon Hill

Co-founder, Wazoku

Simon Murdoch

Managing Partner, Episode1

Spencer Hyman

Co-founder, Navigator Commerce

Stefan Glaenzer

Partner, Passion Capital

Taavet Hinrikus

Co-founder, TransferWise

Tak Lo

Director, TechStars

Tessa Cook

Co-founder, OLIO

Tim Jackson

General Partner, Lean Investments

Tim Spratt

Co-founder, Permutive

Tom Allason

Founder, Shutl (acquired by Ebay)

Tom Foster-Carter

Co-founder, Curve

Tom Jones

Partner, Charlotte Street Capital

Tom Watson

Co-founder, Hubble

Tony Powell

Co-founder, Sponsorlist

Tracy Dorée

Founding Partner, Spring Partners

Tristan Deplantes

Co-founder, Mooshoo Labs

Turi Munthe

Founder, Demotix

Tushar Agarwal

Co-founder, Hubble

Ultan Miller

Co-founder, Release

Varun Shoor

CEO, Kayako

Vincent Dignan

Founder, Magnific

Vivian Chan

Co-founder, Sparrho

Wil Benton

Co-founder, Chew

Will Hodson

Co-founder, The Big Deal

Will Wynne

Co-founder, ArenaFlowers.com and Smart Pension

William Reeve

Co-CEO, Hubbub.co.uk

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