Immigration cap headache for Scotland's accountancy firms

The government's plans to cap the number of work visa's for non-EU citizens has been causing something of a headache in the City where there's an ongoing need for a diverse range of skilled immigrants.

Scotland's financial sector typically relies on a greater proportion of local candidates, but it seems that accountancy firms north of the border are likely to struggle to recruit as a result of the move.

At least that's the assertion of Hywel Ball, managing partner for Ernst & Young in Scotland, who told the Scotsman that financial services and the oil and gas sectors would suffer.

He points to E&Y's Aberdeen office, where the workforce is made up of 19 nationalities and the Edinburgh operation where employees hail from 16 different countries.

"Both of those offices have particular tensions from a nationality cap," he said. "Anecdotally, all of the accountancy firms will feel this to a lesser or greater extent."

But is this such a big issue generally in the current market in Scotland? In reality, it could simply be another hurdle its bid to become a truly global player and attract international talent north of the border.

"We generally look towards the local market when recruiting accountants for financial services roles," says Mark Wilson, managing consultant, accountancy & financial services at recruiters Hudson in Edinburgh. "There is a real skills shortage in this area, but it remains difficult to attract international candidates to roles in Scotland because of the salary differential to London."

A newly qualified accountant working within financial services in Scotland can expect and average of 33k, according to the Michael Page salary survey. Figures from Robert Walters suggest this is 50-55k in London.

More pertinent to the Scottish market is where the roles become more specialised, and then there's a need look internationally for the roles, suggests Mark Beacom, manager - industry and financial services at Michael Page Finance in Edinburgh.

"Firms are expanding in areas related to Solvency II, finance roles within change and project management as well as internal and external audit," he says. "A lack of international candidates would hamper growth, or place greater reliance on attracting people from the London market."