Key facts
- A Labour-linked think tank, the IPPR, has proposed a new 'British Business Investment Visa'.
- The visa would require applicants to inject £3 million in cash for residency rights.
- The IPPR estimates the scheme could attract £425 million in investment annually.
- Funds would be managed by the British Business Bank to target strategic sectors.
- The proposal aims to attract wealthy migrants and support economic growth and jobs.
A Labour-aligned think tank has proposed the creation of a new 'British Business Investment Visa' (BBIV) that would require applicants to make an upfront cash injection of £3 million in exchange for UK residency rights. The Institute for Public Policy Research (IPPR), which has seen several of its policy recommendations adopted by the Labour party, suggests that the government should offer this visa to approximately 100 applicants annually, aiming to attract around £425 million in investment each year.
The IPPR estimates that this investment could contribute £900 million to the UK economy annually and support approximately 4,000 jobs. The funds generated would be managed by the British Business Bank to ensure capital is directed towards sectors identified as having the greatest impact, aligning with the government's industrial strategy, such as defence and creative industries.
This proposal comes after the previous 'tier 1' investor visa was closed by Conservative officials following Russia's invasion of Ukraine, due to concerns about national security and the influx of 'dirty money'. Prospective investors from Russia would be explicitly banned under the new proposal, and all other applicants would undergo rigorous security checks by the Home Office.
Under the IPPR's plan, investors would not receive tax relief, unlike the previous non-domicile regime that was abolished by Rachel Reeves. They would also not be granted special settled status rights. However, investors would benefit from gains on assets, though returns are expected to be 'below market rates' to make the scheme more attractive to the Treasury. Investors would also be subject to minimum holding periods or staged withdrawal restrictions.
Immigration law firms have noted that current visa routes for high-net-worth individuals are often restrictive, tying wealthy investors to single employers or business ventures. The IPPR's proposal aims to channel funds from overseas applicants into innovative businesses seeking to scale up, thereby supporting economic growth and job creation across the UK, while implementing robust safeguards against abuse.