EU citizens will lose priority status to live and work in Britain under a new immigration system announced yesterday by Prime Minister Theresa May.

The new system promises to crack down on low-skilled European workers with the Prime Minister adding that high-skilled workers would be prioritised with no preferential treatment for people from the EU compared with those from the rest of the world.

Speaking to BBC, May said, “Our future immigration policy delivers on the result of the referendum, takes back control of our borders and ensures free movement comes to an end once and for all.”

May said a future trade deal with the EU could include an agreement on "mobility" of each other's workers.

The home secretary, Sajid Javid, said the government might consider dropping the cap on high-skilled visas, including those under the Tier 2 Visa system, following a recommendation by the Migration Advisory Committee’s (MAC) report.

The government said it plans to publish a white paper in the autumn which will set out the details as well as a bill the following year.

“The new skills-based system will make sure low-skilled immigration is brought down and set the UK on the path to reduce immigration to sustainable levels, as we promised," May said. "At the same time we are training up British people for the skilled jobs of the future."

Recruitment & Employment Confederation chief executive Neil Carberry said the Prime Minister’s proposals were a ‘big concern.’

“Many sectors, including the food industry, logistics, construction, health and social care rely on ‘low-skilled’ workers,” Carberry said. “Given the current state of the UK jobs market and the labour shortages that these sectors face, the proposed changes risk damaging UK prosperity.

“We need a post-Brexit immigration system which allows employers to recruit for roles at all skill levels depending on the needs of the economy,” Carberry said. “Given the close ties between the UK and Europe, we believe the government should secure a deal with the EU which allows employers to recruit flexibly and quickly. Businesses need reassurance that their workforces and supply chains will not be damaged after Brexit.”

“Employers will also be concerned about the lack of movement on the Tier 2 visa cap, which stops them being able to fill higher-skilled roles such as doctors and engineers – this is despite the MAC’s recommendation to remove the cap,” Carberry said. “Businesses need clarity on these issues so that they can plan for the future and help drive the success of our economy.”

Tania Bowers, General Counsel at the Association of Professional Staffing Companies also commented, “We are also encouraged by MAC’s recommendation that the cap on the number of migrants under Tier 2 is abolished,” Bowers said. “Sajid Javid has indicated he is considering this option, albeit Theresa May has reaffirmed the Government’s commitment to getting annual net immigration below 100,000.”

“We note that the MAC made little mention of the flexible labour market,” Bowers said. “We think it is critical that the Government recognises the importance of highly skilled independent workers to the economy, many of whom may be EEA nationals. The current route for non-EEA workers, namely sponsorship via a Tier 2 employer, is not appropriate for the country’s needs.

“APSCo advocates a relaxation of the Tier 1 entrepreneur route and a recognition that Tier 2 employers can supply Tier 2 visa workers to end clients to work on their projects as agency workers,” Bowers said. “Access to skilled professionals and engineers benefits the whole economy and, in an increasingly tight market, is key to stability and growth. To secure the best deal migration must form part of the exit discussion with the EU.  To fulfil their clients’ requirements recruiters must find the best available talent either from within the UK or elsewhere.  Until post-Brexit migration policy is finalised, there is a risk that the uncertain climate will continue to deter valuable talent from choosing the UK to build their careers.”

The Confederation of British Industry’s Director-General Carolyn Fairbairn, also commented, “All skill levels matter to the UK economy. Restricting access to the workers the UK needs is self-defeating.

The British Retail Consortium said the policy should be based on the economy's needs rather an "arbitrarily" drawing a line based on salaries or skills.

Meanwhile, Labour said the government was making a "dubious distinction" between low and high-skilled workers - saying care workers were technically "low-skilled" but were "vital to our society".