Limits on the number of professional migrants allowed into the UK are ‘politically-driven’ and risk stalling economic recovery and driving business overseas, speakers at an Alliance of Business Immigration Lawyers conference in London warned earlier this month.

Delegates heard that the UK was ‘bucking the trend’ among industrialised nations by placing barriers in the way of businesses seeking to recruit top talent from overseas.

The country had ‘shot itself in the foot’ by starving itself of the skills to emerge from recession, and should take immediate steps to attract capital and expertise by reducing red tape and costs, lawyers were told.

Lawyers from France, Holland and Australia said that their countries ‘needed people’ to defuse the demographic time bomb of an ageing population and provide a workforce for the future.

Delegates also heard that China is offering incentives to persuade expatriate professionals to return home, while expatriate Indians from the US and elsewhere are returning in increasing numbers because of the ‘good pay and better lifestyle’.

In contrast, the US cites national security and a weak economy as reasons to restrict immigrants.

One speaker said that stricter scrutiny of work visa applications and ‘ambiguous laws’ have had a ‘chilling effect’ on immigration and laid the country open to accusations of ‘protectionism’.

Laura Devine of niche City immigration firm Laura Devine said: ‘These limits are politically-driven, like the limits on visas for students and lower paid workers.

'They are not enough to help the Coalition achieve its stated ambition of reducing net immigration from hundreds to tens of thousands.

‘But at least the business lobby was able to persuade the government to adopt a system of minimum salaries and cooling-off periods to reduce restrictions on inter-company transfers.’

Nicolas Rollason, immigration partner at City firm Kingsley Napley, said: ‘Things could have been worse. Huge lobbying from British business has seen the low skill end of the immigration market take most of the cuts.

'There has been some pandering to big business – the investment sector is reasonably happy for instance.’

Rollason added that there was a ‘flipside to all this, too’. He said: ‘The UK has changed its entrepreneur route so they can be fast-tracked into permanent residency.

'They need to show they have access to at least £200,000 to set up a business and employ people. They can then become permanent residents after three years if the business is successful.’