10 July 2014

This written ministerial statement was laid in the House of Commons by James Brokenshire MP and in the House of Lords by Lord Taylor of Holbeach.

Security and Immigration Minister (James Brokenshire):

My Rt Hon Friend the Home Secretary is today laying before the House a Statement of Changes in Immigration Rules.

These changes will implement restrictions on the ability of those already present in the UK as a Tier 4 (Student) or Tier 1 (Post Study Work) migrant to make an in-country application for an extension of stay as a Tier 1 (Entrepreneur).

The Tier 1 (Entrepreneur) category is for those who wish to establish a genuine business which will generate jobs in the UK. It has, however, become clear that the majority of those applying in-country for leave in the category are those who have come here for the purpose of study and are making speculative or fraudulent applications simply to extend their stay in the UK.

Checks against the tax records of those who have been granted leave as entrepreneurs suggest that few have gone on to engage in genuine entrepreneurial activity, and that a significant proportion have taken employment in breach of their conditions, typically at low skill levels.

This shows that a robust response is required to protect the integrity of the immigration system and to make clear that systematic abuse will not be tolerated. The new restrictions on switching into the Tier 1 (Entrepreneur) category will apply whilst we carry out further investigations into these abuses and review the route to ensure that it delivers its proper purpose, which is to help foster growth and innovation. The changes will come into force tomorrow, to guard against the possibility of any further intake of speculative or fraudulent applications.


Read more here