Business leader attacks Tory migrant cap that would 'irritate Chinese and Indians'

By Tim Shipman
Updated: 05:34 EST, 14 April 2010

Business leaders have criticised Tory plans to place a cap on immigration, warning that it would upset 'the Chinese and Indians'.

The Tory election manifesto contained a pledge to issue an annual cap on arrivals in order to put a stop to Labour’s open doors policy.

But City lobby group London First warned that Tory 'populist' plans to curb economic migrants threatened Britain's position as a global commercial centre.

David Cameron at today's manifesto launch

Under fire: David Cameron at today's manifesto launch which sparked business leaders to attack his plans for immigration

The group has a long history of attacking Tory policies on immigration and their opposition to a third runway at Heathrow. 

London First’s chairman Sir Adrian Montague was once called ‘Labour’s favourite businessman’ and served as an adviser to John Prescott.

The chief executive, crossbench peer Baroness Jo Valentine, accused the party of making the proposals to ‘appease the populist voice’.

Baroness Valentine

Critic: Baroness Valentine, chief executive of London First

She warned it would put off Britain’s trading allies abroad.

‘How we build our links with the Far East and the Bric [Brazil, Russia, India and China] economies is absolutely fundamental to London's future,’ she said. ‘Irritating the Chinese and Indians would not be clever.’

Until now the Tories have won the battle for business backing, with more than 100 top businessmen supporting their plans to reverse part of Labour’s 1p National Insurance rise.

And the Tories pointed out yesterday that eight out of ten businessmen support their plans to cap net inward immigration and that the annual cap each year will be drawn up after consultations on what business needs.

A spokesman said: ‘80 per cent of members of the Institute of Directors support some form of limit on migrants from outside the EU.

‘Britain can benefit from immigration, but not uncontrolled immigration. We want to continue to attract the brightest and the best people to the UK but with control on the overall numbers coming here.'