Talent shortage and immigration laws holding back London tech scene
Tech City entrepreneurs want easier access to Silicon Valley talent
A dearth of talent and strict immigration laws are a barrier to growth for London's technology sector, according to independent private sector group Tech London Advocates (TLA).
TLA is a team of over 600 people that aims to support technology start-ups in finding new investment, new talent and achieving high growth.
In a survey of 173 its members, 43 per cent stated that a talent shortage - widely known as an ‘IT skills gap' - is the biggest obstacle in London's technology sector being able to grow in the future. Ten per cent of those surveyed saw immigration legislation as the biggest issue.
"A lack of skills and challenging immigration legislation is inhibiting growth in the capital and threatening London's position as a global technology hub," said Russ Shaw, founder of TLA.
"Encouraging young people to study STEM [science, technology, education and maths] subjects and initiatives to encourage digital skills are important steps in the right direction, but we are calling on the government to review education and immigration legislation to fuel the long-term growth of London's most vibrant industry," he added.
TLA asked a selection of London's fastest-growing businesses about the challenges they face around immigration and talent, and nearly all involved reported difficulties with recruitment, with seven vacancies available on average at any one time at London tech companies.
The findings chime with a report by GfK last year, which found that 77 per cent of London tech businesses said that if more skilled people were available, they would grow faster.
Dan Crow, CTO of music news aggregator Songkick, said that there needs to be a better system in place for companies to attract candidates from the US to the UK.
"There is a deep pool of highly experienced people in Silicon Valley.
"We've managed to tempt a few of them to London, but we've also lost some very promising potential employees because it is so hard for Americans to get work visas for the UK," he said.
Sarah Wood, founder of Unruly, welcomed the Exceptional Talent visa scheme that the government announced last year, but called on the coalition to do more to reduce the cost, complexity and time taken to push through visa applications.