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In a significant move aimed at addressing skills shortages in the UK, Labour leader Rachel Reeves has appointed renowned labour market expert Professor Brian Bell as her chief economic adviser. This appointment comes at a critical time as the UK grapples with a sharp decrease in net migration, which has dropped by over two-thirds to 204,000 in the year leading to June 2025. Bell’s expertise and advocacy for better pay and working conditions are expected to influence government policy as the country seeks to reduce its dependency on migrant workers.
A Shift in Economic Strategy
Professor Brian Bell, who chairs the independent Migration Advisory Committee (MAC), will assume his new role at the Treasury during a pivotal period for the UK economy. While some economists predict a further decline in net migration towards zero, Bell anticipates a rebound, projecting it could reach around 300,000 annually by the decade’s end.
Bell, who is also a professor of economics at King’s College London, has been vocal about the need for improved employment conditions in sectors like social care. He argues that the skills shortages frequently cited by employers often stem from inadequate pay and poor working conditions, which deter domestic workers from seeking jobs in these fields.
Addressing the Skills Shortage
In its recent annual report, the MAC highlighted that high levels of immigration in certain sectors are not just due to shortages of skills but are also a consequence of unattractive pay and working conditions. This sentiment echoes Bell’s assertion that many skilled workers are unwilling to accept jobs that do not offer competitive remuneration.
In an interview last year, Bell condemned the government’s approach to social care, suggesting that it reflects a systemic undervaluation of the workforce. He remarked, “They may not say it explicitly, but I think they basically believe that care workers should be paid less than people who stack shelves for Aldi.” He criticized the reliance on immigration as a “crutch” for the sector, insisting that without addressing wage issues, the exploitation of workers would persist.
The Future of Social Care Policy
As part of Labour’s efforts to reform social care, a new negotiating body is being established to develop a fair pay agreement that would serve as the statutory minimum across the sector. However, this initiative is not scheduled to be implemented until 2028, and experts have raised concerns that the £500 million allocated for this purpose may prove inadequate. The funding and wider structural issues surrounding social care are currently under review by cross-bench peer Louise Casey, with her findings expected to coincide with the next general election.
During a panel discussion at the Bristol Festival of Economics last year, Bell elaborated on the relationship between immigration and broader policy challenges. He noted, “It’s almost always that where there’s big immigration numbers, the problem is somewhere else in government not addressing an underlying problem.” His insights highlight the complexity of the immigration debate and the need for comprehensive policy reform.
A New Direction for Economic Leadership
Bell’s appointment aligns with a broader reshaping of the chancellor’s advisory team. Recently, Neil Amin-Smith, formerly a member of the pop band Clean Bandit, was appointed chair of the council of economic advisers. This council, composed of political appointees rather than civil servants, aims to bring fresh perspectives to economic policy.
Rachel Reeves expressed confidence in Bell’s ability to enhance the government’s economic strategy, stating, “Through stability, investment and reform, this government has the right plan for our economy and the appointment of Prof Brian Bell will strengthen our economic leadership as we deliver for working people.”
Why it Matters
The appointment of Professor Brian Bell signifies a potential shift in the UK government’s approach to labour market issues, especially in sectors facing critical skills shortages. By advocating for better pay and working conditions, Bell’s influence could reshape the narrative around immigration and domestic employment, ultimately fostering a more sustainable workforce. In an era where economic stability is paramount, addressing these fundamental issues could not only enhance worker engagement but also drive growth in sectors essential to the nation’s future.
