Businesses are suffering from changing immigration laws and uncertainty as to the future of these laws, with law firms particularly hit, according to The City of London Corporation’s ‘Access to Global Talent’ report.

Much comment in the wake of unemployment figures released on Wednesday has focused on the number of foreign workers newly employed in the UK, with The Daily Telegraph claiming the number of foreign workers has risen by 150,000 in a year.

The report shows that firms are dedicating more resources and in some cases creating new positions to ensure they can adapt to changing migration policy, but are in some cases postponing or delaying expansion and growth plans, as they are unable to forecast the direction government will take on migration limits.

This has allowed businesses in other countries to steal a march on the UK, particularly in the legal services that recruit talent two years in advance.

Desmond Hudson, chief executive of the Law Society, says: “If law firms and other businesses are to remain strong during these testing times they need to be able to recruit the best people, whatever their origin.”

However, the report also suggests that companies with a good compliance should be pre-vetted and provided scope for fast track applications.

Hudson continues: “While the UK is currently one of the top 15 destinations for global talent, today’s report highlights that its ranking is projected to drop, as other countries improve their competitiveness. The government must ensure that it does not damage the UK’s international position by limiting business migration to unrealistic levels or imposing more bureaucracy on business.”

The current five tier points-based system for assessing individuals for admission to the UK replaces over 80 routes previously in place.