Business Secretary Vince Cable has said the new UK Visa cap for non-EU migrants is costing Britain thousands of jobs and hurting its economic recovery.
"A lot of damage is being done to British industry," Mr Cable said.
Mr Cable said that companies were moving jobs overseas in response to UK immigration caps that left them unable to hire key staff.
The Coalition Government announced a temporary limit in July on the number of skilled non-EU immigrants allowed to enter Britain, ahead of a permanent cap on numbers to be introduced next April.
The interim limits will apply to all new applicants under Tier 1 (General), except for extension applications and in-country applications. Applications under Tier 2 (General) will be limited by the number of Employer Sponsorship Licences that are issued.
Mr Cable while he supported the Coalition’s plan for a permanent immigration cap he wanted to see it applied flexibly.
While he declined to name companies affected by immigration limits Mr Cable said there has been numerous complaints, particularly by the investment banking, engineering and pharmaceuticals industries.
He said in one case a British company needed 500 specialist engineers but was given a quota of four.
