Business groups condemn impact of migration clampdown

They said that the policy change will impact recruitment and have a knock-on effect on supply chains and the economy.

The new rules follow last December’s general election and the UK’s subsequent departure from the EU.

The government intends to cut low-skilled migration to this country and will introduce a points system for applicants. Requirements include the need to amass a total of 70 points and the offer of a skilled job with an approved sponsor. There will be a lower salary threshold, however.

“It is important employers move away from a reliance on the UK’s immigration system as an alternative to investment in staff retention, productivity and wider investment in technology and automation,” the government said.

However, the BRC director of business and regulation Tom Ironside said: “Retailers rely on complex supply chains and for these to function effectively must be able to access an adequate supply of workers.

“Although we welcome the reduction in the salary threshold, it is disappointing that the government has not understood the needs of the economy and the vital contribution of workers supporting the operation of warehouses, food factories and city-centre stores.

“When vacancies cannot be filled from the local labour market, businesses must be able to recruit from the widest talent pool available across all skill levels. We continue to call for a system that enables straightforward recruitment from a range of skill levels and avoids significant increases to the cost of employment.”

CBI director-general Carolyn Fairbairn said: “Firms recognise and accept that freedom of movement is ending, and have sought a system that is both open and controlled, valuing people’s contribution beyond their salary while retaining public confidence.

“Several aspects of the new system will be welcomed by business, particularly abolishing the cap on skilled visas, introducing a new post-study work visa for overseas students and reducing the minimum salary threshold from £30,000.

“Nonetheless, in some sectors firms will be left wondering how they will recruit the people needed to run their businesses. With already low unemployment, firms in care, construction, hospitality, food and drink could be most affected.

“Firms know that hiring from overseas and investing in the skills of their workforce and new technologies is not an either/or choice – both are needed to drive the economy forward.”