UK warned: Quota could dent growth

Associated Press

LONDON

British Prime Minister David Cameron won much attention on his recent trip to the United States with his program of savage spending cuts. He’s also been sharpening his shears on another front: immigration.

The new coalition government will impose a permanent immigration quota next year, promising to cut levels of migration to rates last seen in the 1990s and dramatically reduce the numbers of non-Europeans allowed to live and work in the U.K.

It’s long been a flagship cause for the country’s Conservative Party, which leads Britain’s governing coalition and says that unchecked immigration had strained public services, distorted labor markets and fueled social divides.

But some business leaders warn that the limit is unworkable and that by choking off the supply of foreign workers, the government could stall economic growth and curtail Britain’s recovery from recession.

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