Tough new restrictions to legal immigration could result in an almost £11billion blow to Britain, it has been warned.

Sweeping immigration reforms limiting the number of people from abroad allowed to come here on visas will damage the economy , an impact assessment released by the Home Office on Wednesday suggests.

The projected cost ranges from £2.2 billion to £10.8 billion, with a base estimate of £5.4 billion, over the next five years.

These include an £800million drop from visa fees, billions-of-pounds less in income tax receipts and added pressure on stretched public services.

But the Home Office said the expected cost would be offset by “potentially unquantifiable benefits” as the Government plans to “get people back into work” and “upskill the domestic workforce”.

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