Rishi Sunak is under pressure from business chiefs to use immigration to plug gaps in the domestic workforce.
The Prime Minister will address the Confederation of British Industry (CBI) today, off the back of an autumn statement which put the country on course for tax rises and spending cuts at a time of recession and falling living standards.
CBI director general Tony Danker said a more liberalised approach to immigration was needed to help boost economic growth when public spending is tight.