Vince Cable’s attack on immigration cap wins City backing

City bosses today backed a warning by Business Secretary Vince Cable that the government cap on immigration is damaging Britain's economy.

Liberal Democrat Cable surprised Westminster with the attack on his Tory coalition partners.

He is demanding more flexibility on immigration limits for people from outside the European Union.

Angela Knight, chief executive of the British Bankers' Association, agreed: "We are certainly in favour of a flexible cap as it applies to financial services, and banking in particular.

"Many banks here have their headquarters which are for Europe, the Middle East and Africa and they transfer people between their sites [across the region] and they have big graduate trainee schemes.

"These people don't really fall into the category of immigration because they are only here two to three years."

The Association for Financial Markets in Europe, which represents all the major international banks, also backed the Business Secretary: "We agree with Vince Cable. It is very important that firms, particularly global firms, can move their talented people, and anything that damages the attractiveness of London is actually damaging to the economy as a whole."

The City of London Corporation signalled its support as well. Stuart Fraser, chairman of its policy and resources committee, warned: "Leading international firms will locate to business environments that allow them to succeed. The UK needs an immigration policy that recognises this."

Cable has been a fierce critic of investment banking's "casino capitalism" but his call for more flexibility on immigration is winning him friends.

He said: "I was talking to people in the City and there were two investment banks that recruit hundreds of people from the non-EU area, Indians and Americans. They were allowed only 30-40. They have moved some operations to Hong Kong."

"A lot of damage is being done to British industry. I've got a file full of examples. It's not just people whingeing."