In a move that has sent shockwaves through the British business community, Japan has announced a fivefold increase in visa fees for foreign workers, the first such hike since 1978. From next month, the cost of a work visa will jump from £300 to £1,500, a steep rise that threatens to price out small and medium-sized enterprises (SMEs) from one of the world’s most lucrative markets.
For decades, British firms have relied on Japan’s relatively low visa barriers to send engineers, tech specialists, and managers to its shores. The new fees, however, will add a significant burden to companies already grappling with post-Brexit trade red tape and a soaring cost of living at home.
“This is a disaster for our export sector,” said Margaret Turner, owner of a Manchester-based engineering firm that has a branch in Tokyo. “We send four staff over there each year. Under the new rules, that’s an extra £4,800. For a small business like mine, that could be the difference between breaking even and making a loss.”
The Japanese government justified the hike as a move to “streamline administrative costs” and align with international standards. But critics argue it is a protectionist measure designed to curb foreign labour inflows amid a tightening economy. Japan’s population has been shrinking for years, and the nation relies heavily on foreign workers to fill gaps in its aging workforce.
British trade unions have also voiced concern. “This will hit working people twice,” said Len Williams of the Trades Union Congress. “First, it will make it harder for British workers to gain valuable international experience. Second, it will drive up costs for businesses, which will inevitably pass those on to consumers via higher prices or wage suppression.”
The timing couldn’t be worse. The UK is in the grip of a cost-of-living crisis, with inflation stubbornly high and real wages falling. The Office for National Statistics reported last week that average earnings grew by just 5.6% in the year to March, well below the rate of price increases. For families on the brink, any additional upward pressure on costs is painful.
Yet the impact is not limited to big corporations. Freelancers and contractors, who have historically used Japan as a gateway to Asian markets, will be disproportionately affected. “I’ve been working in Tokyo for 10 years, renewing my visa every six months,” said freelance designer Akiko Tan, who is based in London but travels frequently to Japan. “This new fee means I’ll have to think twice. It’s a tax on ambition.”
The move also threatens to deepen regional inequality. Northern businesses, already struggling with lower productivity and weaker infrastructure, will find it harder to absorb the extra costs. The North-South divide, long a stain on the UK economy, could widen as London-based firms with deeper pockets adapt more easily.
Some hope that bilateral trade deals might soften the blow. The UK and Japan signed a free trade agreement in 2020, but it does not cover visa fees. The government has said it is “monitoring the situation” but has not announced any formal response.
As the new fees loom, British businesses are left to calculate their losses. For many, the math is simple: higher costs, fewer opportunities, and a world that seems to be closing in.
