Immigration cap to be scrutinised

The proposal to place a cap on the numbers of skilled workers coming to the UK from outside the EU will be analysed by a group of influential MPs.

There have been fears expressed that the Government has got its policy wrong, and that the limits it wants to impose on the amount of people allowed into the country could threaten the recovery and drive business abroad.

Chairman of the Migration Advisory Committee (MAC) Professor David Metcalf will give evidence to members of parliament.

The chairman of the Commons' Home Affairs Select Committee, Keith Vaz, has said the policy risks imposing "restrictions on friendly countries like India". He added that before the cap is implemented it should pass the scrutiny of Parliament.

An immediate 5% reduction was imposed earlier this year to prevent a rush of applications while the independent MAC consults on where the limit should be set from April next year.

Business Secretary Vince Cable raised concerns about the proposed caps while on a visit to India this summer, admitting there was a "debate" in the Cabinet about the plans.

The Liberal Democrat Business Secretary said he was pushing for a light-touch regime, saying he wanted to encourage trade and inward investment.

Some business leaders are worried that the cap might have an impact on Indian companies which heavily invested in the UK, as well as UK-based companies that rely on workers from the south Asian peninsula, particularly in services such as IT, food and hospitality.