Law Society chief executive Desmond Hudson has urged the government not to consider any further cuts to business migration limits.

This week a report commissioned by the City of London Corporation warned the UK was in danger of creating a perception it was not open for business to skilled foreign workers.

The government wants to reduce net migration to tens of thousands and impose quotas on skilled workers coming to the UK from last April.

The report, surveying 21 UK-based companies, including six law firms, showed that most were able to get visas for new recruits, although this had incurred additional costs.

Hudson said under-subscription of quotas during the recession did not offer justification for further cuts.

He said: ‘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.

‘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 it does not damage the UK’s international position by limiting business migration to unrealistic levels or imposing more bureaucracy on business.’

The report stated that uncertainty over potential incoming workers has resulted in businesses postponing or delaying expansion and growth plans. Some businesses even reported losing internal teams to other global locations and reducing their overall UK headcount of talent from abroad.

Stuart Fraser, chairman of policy and resources at the City of London Corporation, said the cap had left a ‘negative perception of the UK as a business environment’ which surpassed the limited practical effect.

‘It is in all our interests that there is a fair, transparent and rational system which, in a competitive and mobile world market, can maintain the UK’s openness to skilled people - regardless of their origin.’