The REC has warned that an immigration cap would affect business growth negatively.

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Those searching for recruitment agency formation advice in the hope of going into self employment could be affected by government plans to put in place an immigration cap.

According to the Recruitment and Employment Council (REC), which has expressed disapproval of the plans, a cap on migrants from outside the European Economic Area will lead to greater skills shortages

People who are starting a recruitment company could face a shortage of qualified candidates as the move could impact negatively on sectors where much needed skills are already difficult to find locally.

"An artificial cap on immigration will affect business growth and delivery of core services such as social care," commented Kevin Green, chief executive of the REC.

"We ask that the government seriously considers the impact of preventing skilled workers coming into the country if the positions they are being recruited for cannot be filled locally."

Immigration was one of the most volatile issues during the campaigns for the last general election.