Small firms in the North East could be hardest hit by new Government immigration policy, a leading business group has claimed.
The Federation of Small Businesses (FSB) has polled members over Government plans to introduce a 拢30,000 salary threshold for all overseas workers coming into the 海角视频 after the Brexit transition period.
The threshold has been widely criticised by business and employer groups since it was first proposed by the Migration Advisory Committee last year over fears it will leave many sectors of the economy unable to attract the staff they need.
The survey has been released as leading business and trade groups have set out their priorities for the successful introduction of a new immigration system.
They called for flexibility for skilled workers to enter the 海角视频 through a points-based system, and a reformed sponsorship process.
The 海角视频鈥檚 five largest business organisations and around 30 trade associations, from hoteliers to universities, employing millions of people, also welcomed signals that a 拢30,000 minimum salary test may change.
Some reports have this week suggested the Government is preparing to drop the threshold, but that led to a number of Conservative MPs calling for it to be retained to help reduce immigration.
The business groups are raising the pressure on Ministers to reduce the limit by almost 拢10,000, saying that a level of 拢20,100 is more typical for skilled staff working for SMEs.
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The FSB鈥檚 research found 90% of firms in the North East currently hiring 鈥渕id-skilled鈥 employees do so for salaries under 拢30,000.
FSB chairman Mike Cherry said: 鈥淪mall businesses are usually ahead of the curve on pay, rewarding staff fairly for their efforts and providing flexible, supportive working environments.
鈥淲ith overheads for small firms mounting 鈥 not least due to rising business rates, utility bills and wider staff costs 鈥 the extension of the 拢30,000 threshold threatens to cause serious disruption to a labour market already beset by skills shortages and limited vacancies.鈥
The FSB has also joined groups including the CBI, British Chambers of Commerce, Institute of Directors and Make海角视频 in a letter to Home Secretary Priti Patel.
The letter said: 鈥淏usiness understands that the immigration system must change in order to re-build public confidence. Insight from enterprise can help build a points-based model that provides greater control, whilst providing access to the labour and skills needed to support the economy.
鈥淎nd this can go hand in hand with a continued determination to invest in training home grown talent.鈥
A Home Office spokesman said: 鈥淲e will deliver on the people鈥檚 priorities by introducing a points-based immigration system, attracting the brightest and best talent from around the world while cutting low-skilled immigration and bringing overall numbers down.
鈥淭his firmer and fairer system will let us decide who comes to this country based on their skills and the contribution they can make - not where they come from.
鈥淲e will continue to speak with businesses of all sizes as the system is designed and rolled out.鈥
