BUSINESS leaders have condemned the Government’s refusal to raise a cap on skilled foreign workers coming to the UK, warning it is putting the country’s economic recovery at risk.

The Confederation of British Industry (CBI) says up to 20 major firms have complained about visa applications for non-EU recruits being turned away after the monthly limit was hit.

However, the organisation has backed David Cameron’s quest for reforms of the EU, saying it will better the UK’s interests.

Referring to foreign staff, John Cridland, CBI director general, suggested skilled migrants have become a first port of call because they are easier to target.

He added: “Let’s tackle the bits of immigration the public is concerned about, but while we have challenges to productivity and education and skills, let’s not let migration controls inhibit economic growth.

“I am in favour of a lifting of the cap, on a controlled basis.

“It has been at 20,700 for many years.

“We have hit it now and if you have good business visa applications coming forward then it is right to push up the cap.

“The Government needs to back out of the cul-de-sac it is in on the overall net migration target because frankly it isn’t a target they can easily manage.

“You would focus on bogus asylum seekers, people who don't want to come here to work, people who bring extended families when that wasn’t the original intention, people who outstay their welcome, people who don't abide by the rules.”

Speaking about the EU, Katja Hall, CBI deputy director-general, said a reformed structure would bring more benefits for UK companies.

She added: “We simply don’t accept the argument that if you believe EU membership brings benefits to the UK; you can’t push for reform to make it work better at the same time.

“The two are not mutually exclusive.

“We support the Prime Minister’s ambitious efforts.

“Reform for all of Europe is in the UK’s interest and the Government must work with other countries to secure a more competitive EU.

“In particular, building on the work started in Brussels on better regulation, getting more trade deals signed, such as the Trans-Atlantic Trade and Investment Partnership, and furthering the internal market in services and digital.

“The principle of subsidiarity should also be prioritised at the negotiation table, giving national parliaments a greater say on issues better dealt with at country level.”