Society of Motor Manufacturers and Traders: Written Evidence RTS4611

Summary

SMMT's written evidence RTS4611 describes the automotive industry as a nationally distributed manufacturing and export sector, supporting direct manufacturing employment, wider supply-chain jobs and regional productivity.

It says the sector does not rely on immigration as a general labour substitute, but uses visas to bring specific global skills into the UK for production launches, engineering, emerging technologies and knowledge transfer. The submission warns that longer routes to settlement would compound other immigration-cost changes, including the Immigration Skills Charge and salary thresholds.

SMMT reports survey evidence that sponsoring workers for an additional five years would cost automotive employers more than GBP100 million over 2026-2030, with higher exposure when the wider supply chain is included. It asks that growth-supporting roles relevant to industrial strategy, net zero, batteries, connected vehicles and automated vehicles be protected, and that people already on a route to five-year settlement in the automotive industry be excluded from an ILR extension.

Why this matters for the archive

This evidence is important because it translates settlement reform into industrial-strategy terms. It documents how a sector with regional manufacturing hubs sees settlement uncertainty, sponsorship cost and skill access as factors in investment, production resilience and global competition.

Key Observations

• SMMT distinguishes targeted global-skill use from general over-reliance on immigration.
• It estimates more than GBP100 million in additional sponsorship cost for automotive employers over 2026-2030 if sponsorship extends for another five years.
• It links immigration policy to industrial strategy, net zero, automated vehicles, batteries and inward investment.
• It asks that individuals already on a five-year settlement route in the automotive industry be excluded from the ILR extension.