Government 'to relax immigration cap'The government is poised to bow to pressure from businesses and relax Britain's non-EU immigration cap from next year to allow firms to recruit skilled foreign workers, according to a report.

An article in the Daily Telegraph has claimed that 4,000 people from outside the EU are likely be allowed to enter the country each month – up from the current limit of 2,600 – with the final figure due to be finalised later in the month.

"Although we need to bring immigration under control, we don't want to damage the economy," a source close to the coalition explained. "We want the best skilled people from around the world to still come here."

Prime minister David Cameron has held several meetings with concerned industry leaders and business secretary Vince Cable was vocal in his opposition to the introduction of the cap following May's general election.

Forum of Private Business spokesman Chris Gorman warned last week that entrepreneurs could be forced to set up shop overseas if they cannot hire sufficient numbers of talented employees.

Posted by Cameron Thomson