Thousands of British technology workers face soaring costs after Donald Trump confirmed plans to impose a $100,000 (£74,000) fee on specialist US visas.
The dramatic increase applies to the H-1B visa, which is widely used by tech companies to hire foreign workers. Last year, 1,462 Britons received H-1B visas – more than any other European nation – while 985 have already been approved in the current fiscal year.
Trump’s administration said the measure is intended to encourage companies to recruit American workers. Commerce Secretary Howard Lutnick initially announced that the $100,000 fee would be levied annually, including at renewal, but the White House later clarified it would be a one-off charge when the visa is first granted.
The move has sparked a backlash in Silicon Valley, where companies such as Amazon, Microsoft and Google argue that H-1B visas are essential to attract top talent amid fierce competition with China in fields such as artificial intelligence. Elon Musk, the Tesla chief executive, claimed he and many of his colleagues were only in the US thanks to the visa system and pledged to “go to war” over the issue if necessary.
Economists warned the change would damage US growth by restricting access to skilled foreign workers. Atakan Bakiskan of Berenberg said: “By making it very expensive for companies to attract foreign talent and by forcing some international students to leave the country after graduation, the brain drain will weigh heavily on productivity.”
The impact could present an opportunity for Britain. Dom Hallas of the Startup Coalition urged Home Secretary Shabana Mahmood to expand the UK’s Global Talent visa and reform share award tax rules, arguing the country could position itself as the “destination of choice” for international tech workers.
Sir Keir Starmer is already exploring measures to attract top scientists, software developers and academics, with officials examining proposals to scrap visa fees entirely for leading professionals. One senior figure described the current system as a “bureaucratic nightmare”, while sources said Trump’s crackdown had given “wind in the sails” to Britain’s own plans.
The Prime Minister’s global talent taskforce, led by business adviser Varun Chandra and science minister Lord Vallance, is reviewing proposals ahead of the November Budget. Previous attempts to attract elite talent have had limited success, but Labour sees a chance to capitalise on Trump’s hardline stance.
India remains by far the largest source of H-1B visa holders, followed by China and Brazil. Britain is ninth on the list, but the sharp increase in fees could now price out many skilled workers who previously sought to live and work in the US.
