Immigration cap could ‘choke off’ recovery

By staff

The hasty implementation of a cap on immigration could “choke off” Britain’s economic recovery, according to business leaders.

A study by the Chartered Institute of Personnel and Development (CIPD) found one in ten private sector companies would relocate jobs abroad due to the ban.

Call-centre, IT and finance jobs are set to go to India, China and eastern Europe if the government presses ahead with the cap, according to the report.

“[The cap] could potentially cut off a labour supply and impede growth in UK companies, which will be devastating given that the government’s hopes for reducing unemployment hinge solely on the private sector growing jobs,” said Gerwyn Davies, public policy adviser at CIPD.

The report marks another concern for the Conservatives as the party tries to formulate a credible level for the cap by early next year.

The party’s Liberal Democrat coalition partners have made no secret of their objections to the cap, with business secretary Vince Cable making clear he was not a fan during a recent trip to India.

Mr Cameron’s trip to the country was met by irritation among some Indian business who suggested David Cameron’s promise that Britain is “open for business” was disproved by the cap proposal.