'Open the borders to skilled migrants', civil service chief says

Sir Gus O’Donnell, who stepped down earlier this year, said tight immigration restrictions are “a big barrier to growth” as Britain emerges from its second recession in recent years. Not enough skilled workers in particular are moving to the UK, he added.

Writing in The Times, Sir Gus said: “The first thing that the Government can do to help growth is to stop shooting itself in the foot. A big barrier to growth is an immigration policy that deprives the UK of skilled workers in certain disciplines.”

His comments back up a report on growth presented on Wednesday by Lord Heseltine of Thenford, who wants ministers to take another look at how to help businesses hire staff from overseas.

The Tory peer, a former deputy Prime Minister, said that “regulations relating to immigration policy should be reviewed” following warnings from business leaders that tight rules are deterring entrepreneurs.

Sir Gus said: “Lord Heseltine, while at pains to avoid criticising the Government, clearly sympathises with the difficulties that businesses face in recruiting these workers.”

The Prime Minister has promised to limit non-European citizens coming into Britain to the tens of thousands, rather than hundreds of thousands.

Since the Coalition came to power, ministers have toughened up the criteria for getting visas.

However, some, including Vince Cable, the Business Secretary, have raised fears that it makes it more difficult to attract the best and brightest foreigners as students or skilled workers.