Plans to introduce an ‘Immigration Skills Charge’ for employers hiring non-EU workers will penalise companies in charge of delivering the UK’s public infrastructure, civil engineering contractors have warned.

A report by the UK government’s migration advisory committee has recommended an upfront charge of £1,000 per year for each Tier 2 migrant employed by companies in the UK.

The report recommends that immigrant workers should be paid at least £30,000 and the minimum for non-EU nationals transferred within a company from overseas would be £41,500.

The idea is that companies in the UK would be incentivised to employ UK nationals ahead of immigrants from outside the EU.

The committee also recommends the introduction of an immigration skills charge to act as a skills levy on firms using migrant labour. The revenue accumulated from the charge could be used to help raise skills in the domestic jobs market through training, and decrease the demand for migrant labour, the report says. This charge would be £1,000 per year for each Tier 2 migrant employed by companies in the UK.

Committee chair Sir David Metcalf said: “Skilled migrant workers make important contributions to boosting productivity and public finances, but this should be balanced against their potential impact on the welfare of existing UK residents.

“Raising the cost of employing skilled migrants via higher pay thresholds, and the introduction of an immigration skills charge, should lead to a greater investment in UK employees and reduce the use of migrant labour.”

The Civil Engineering Contractors Association (CECA) is lobbying against the plan which it said would act as a drag on delivery of vital infrastructure projects at a time of an acute skills crisis.

CECA chief executive Alasdair Reisner said: “Our members are keen to deliver, upgrade and maintain the UK’s vital infrastructure networks using home-grown talent where possible.

“However, the introduction of this charge would penalise employers who hire skilled non-EU migrants. In the infrastructure sector, this could act as a drag on the ability of companies to hire the best people for the job.

“The success of the UK economy is reliant on the vital roads, rail, energy and communications networks CECA members deliver on a day-to-day basis.

“While our members share the government’s ambition of creating a more highly skilled UK workforce, is it self-defeating to hinder their ability to import skilled workers from abroad when absolutely necessary.

“This could act as a drag on the ability of companies to hire the best people for the job.”