New rules that restrict companies from hiring foreign workers must be “reviewed immediately”, the CBI employers’ body said, putting the business lobby on collision course with the government.

The Home Office imposed a temporary limit on skilled workers coming to Britain from outside the European Union because of fears of a flood of applications ahead of the introduction of a permanent cap next year.

John Cridland, the CBI’s deputy director-general, said he understood why action was needed to avoid a spike but said the new system was “poorly managed and proving a real headache for firms”.

He cited a FTSE 100 company told that it could recruit only one non-EU staff member for the rest of the financial year, and another that was given only five work permits.

Mr Cridland said he was not against a sensibly managed limit but the interim measures were “undermining confidence that the permanent cap will work”.

The government should “prioritise skilled workers with a job offer”, he added. “This relatively small pool of workers doesn’t just earn money and pay taxes here but also keeps employers and projects here.”

Damian Green, immigration minister, rejected the criticism and said the border agency was already working closely with business on the interim cap. “There are millions of people in Britain who employers can recruit,” Mr Green said, “and I expect companies to look to fill vacancies from the resident labour force before they look for skills outside the UK.”

David Cameron promised to reduce net yearly migration to the tens of thousands by the end of this parliament – a popular manifesto pledge. But companies say the targeting of skilled non-EU workers calls into question the prime minister’s claims that Britain is “open for business”, while some cabinet members such as Vince Cable, the Lib Dem business secretary, have voiced grave doubts about the ­policy.

The CBI said that by far the biggest number of migrants arrive as students; some 360,000 student visas were granted in the year to June. Only 145,000 of those were for university places and the CBI said the government should “move swiftly” to limit permits for non-degree courses.

Mr Cridland’s comments were made as the CBI submitted its official response to a government consultation on its plans for a permanent cap.

It also called on the Home Office to make so-called “intra-company transfers” – which let employers bring in staff from overseas offices – exempt from the cap for the next three years.

The transfers are controversial because they are used by Indian IT companies to bring in thousands of workers each year, even though British contractors say they could do the work. The Home Office is considering whether to restrict the transfers in some areas such as IT, while allowing them in other sectors.

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