The coalition government’s plan to introduce a cap on immigration has not been welcomed with open arms by UK businesses.
This is according to John Philpott, chief economist at the Chartered Institute of Personnel and Development, who claimed that employers will not look favourably on the move as it restricts them from taking on foreigners with in-demand skills.
Another option being considered alongside the cap is to reduce the burden on the NHS by making employers pay for the private healthcare of non-EU workers, which the expert believes will hit companies hard.
"[Businesses] will be wary of any measures that make it difficult and more costly to hire the staff that they need," Mr Philpott explained.
However, he conceded that the policy may encourage greater employment of British workers.
Kevin Green, chief executive of the Recruitment and Employment Confederation, recently suggested that the blanket cap on immigration will lead to a skills shortage in the UK economy.
Posted by Ross George