The migration limits are causing businesses to postpone plans for expansion, the City of London Corporation has found.
“Against the current backdrop of continuing uncertainty [over the cap], some global firms are reported to be considering whether they could move key business areas out of the UK,” said the group’s policy chief Stuart Fraser.
“International companies such as these are also likely to employ large numbers of British workers, with relocation having the potential to damage employment levels, the UK’s pool of skills and the tax revenue.”
“SMEs tell us that if they can’t find the right person for the job they simply won’t recruit at all,” Colin Stanbridge of the London Chamber of Commerce told City A.M.
“In an increasingly competitive global economy London’s businesses find it hard to understand why the government is looking to limit their ability to recruit the best talent from around the globe,” Stanbridge added.
Home secretary Theresa May has been charged with reducing net immigration to “tens of thousands each year, not hundreds of thousands”.