British firms hit hard as EU workers head home

British Chambers of Commerce warning comes as CBI calls for greater clarity from Government

BRITISH businesses are already suffering from a lack of workers as EU staff quit their jobs and leave the UK, and continental sources of labour dry up.

Hotels and hospitality firms fear they may have to close as a result, while engineering and manufacturing companies are considering moving overseas to find the staff they need – harming British workers in the process.

Companies issued the stark warning in the British Chambers of Commerce’s (BCC) response to the Migration Advisory Committee’s call for evidence.

“The impact of uncertainty over the status of EEA (European Economic Area) nationals is exacerbating recruitment difficulties and, in the longer term, could impact severely on business growth and competitiveness,” the BCC said.

At the same time the Confederation of British Industry’s (CBI) director general has urged the Government to give firms “unity, clarity and certainty” in the year ahead.

Carolyn Fairbairn called for an end to the near-total focus on Brexit after what she described as a “jaw-dropping, roller-coaster” year.

While achieving a binding Brexit transitional deal by the end of the first quarter to safeguard free trade with the EU remains a top issue, the CBI – which represents 190,000 UK businesses – described it as “only part of the picture”, adding that there are many more “fundamental building blocks of the economy … firmly within our control”.

The business group said the Government must act to tackle the UK’S skills shortages, promote innovation and develop infrastructure to thrive in the coming year. The country faces a “skills emergency” according to Ms Fairbairn, who said the CBI will be campaigning this year for better careers advice and people under the age of 16 to have at least four chances at sampling work. She added that “the world around us is transforming”, and Brexit should not distract from that.

“While the UK is consumed with Brexit, China is building a global infrastructure through One Belt, One Road, while other nations are seizing the opportunities of the fourth industrial revolution,” she said.

“The world won’t wait for Britain. We must get on, at speed and with great determination, with adapting our economy for the future.”

Technical skills will also be a focus, with the group working to champion better technical education, apprenticeships and re-skilling adults.

The BCC’S survey of 1,600 businesses across the country found widespread concern over the potential loss of EU workers in Britain.

The BCC wants the Government to give an “unconditional guarantee” to workers from the EEA – which includes the EU – “that they and their families can remain here post Brexit”.

It wants firms to keep access to new EEA workers through any transition period “at all skills levels, without additional costs or restrictions, and these workers should be allowed to remain in the UK at the end of the transition period”.

Businesses also want a “light touch, fast and affordable” migration system to be put in place after Brexit to allow them to hire EEA workers without substantial financial or bureaucratic costs.

Employment in the UK is currently close to a record high while unemployment is at a 42-year low, making it harder for companies to find the staff they need, even without a fall in the supply of EU workers.

The BCC’S survey of companies found 48pc are already suffering skills or labour shortages.