The UK’s version of the ‘golden visa’ has seen more than 850 multi-millionaires over the last five years gain the right to live in Britain.
The scheme was introduced in 2008 for investors willing to spend a minimum of £1 million in government gilts in exchange for a visa, but not a UK passport.
The chairman of the Home Office’s Migration Advisory Committee has said the government is “giving away” the visas and that the scheme has been of little benefit to British citizens. Prof Sir David Metcalf said: “The present system, it seems, is designed to minimise the gains to UK residents and maximise the gains to the migrants.
“Indeed, we pay them for making the application. They get interest on their loan - the gilts.”
Since the scheme began, 433 Russian oligarchs have so far entered the country along with 419 Chinese millionaires. US citizens comprised the third largest group having made 96 applications over the five years.
In the last year to September, almost 1,600 “investor” visas were granted, including dependants such as spouses and children.
The Government had asked the Committee to review the situation. Its report proposes several reforms, including raising the minimum investment to £2 million and selling about 100 visas every year to the highest bidder.
In exchange, the number of days per year an applicant would need to reside in the UK would be halved to 90 days and they would gain permanent settlement rights more quickly.
“When people say ‘Isn’t it awful to sell visas’, I reply that it is better than giving them away, which is what we’re doing now,” said Prof Metcalf.
Home Secretary Theresa May is to consider the recommendations.
