In a surprise move, the government has decided to impose a temporary nine-month cap from July 1 on immigration from non-European Union countries pending a review of its election pledge to introduce a fixed annual limit from next April.
During this period only 24,000 non-EU skilled workers who qualify under the existing points-based system would be allowed.
The decision would affect mostly immigrants from India and other South Asian countries who form the bulk of the non-EU intake. It is a controversial departure from the existing regime that puts no restrictions on the number of skilled workers coming into Britain provided they meet the stringent criteria relating to skills, qualifications and earnings.
It is not clear whether the temporary cap would also apply to overseas students.
A formal announcement will be made by Home Secretary Theresa May on Monday when she will also launch a wide-ranging consultation with business groups and universities on plans for a permanent cap.
Leading British businesses are opposed to an artificial limit arguing that it would make it difficult for them to recruit the necessary skilled staff and damage the economy. Universities, who depend on fee-paying foreign students as the main source of their income, are also strongly opposed to such rigid restrictions.
The decision to impose a temporary cap came barely hours after it was suggested that the proposed consultation meant that there would be no change in the current system until a final decision was taken.
Conservatives blamed the confusion on Liberal Democrats, their junior coalition partners, who fought the election on an anti-cap platform but were forced to accept the idea after joining the government.
Conservative Ministers insisted that the government remained committed to bringing down the number of migrants from “hundreds of thousands to tens of thousands” while taking into account the objections raised by businesses.
The Bangladesh Caterers' Association, representing thousands of British Asian restaurants, said a cap on would seriously hamper recruitment of skilled chefs from outside the EU.
