This follows previous announcements of an immigration cap to reduce inward migration of skilled workers by limiting the number of UK Visas issued.
Many UK Companies are encountering significant difficulties in recruiting the skilled workers needed to expand their businesses and remain competitive, with the Home Office effectively removing the ability for a large number of Companies to obtain Certificates of Sponsorship that are required to sponsor a Tier 2 Skilled Worker.
The reduction in the number of Tier 1 visas being issued is seen by many as a further nail in the coffin of those Companies who rely on obtaining skilled workers from overseas.
The UK immigration cap has come under heavy criticism from politicians and employers since it was announced and was also heavily criticised by the Liberal party prior to the coalition being formed. The Confederation of British Industry (CBI) has also warned that the immigration cap is preventing businesses from recruiting the best international talent.