BUSINESS leaders have called for a relaxation of immigration controls in the region amid claims that firms are being held back by a lack of homegrown skilled labour.

The North East Chamber of Commerce is seeking legislation that takes into account regional labour market needs and available skills, following a study which demonstrates the importance of foreign workers to large businesses in the region. The NECC Workforce Survey revealed that many firms with more than 50 employees are reliant on overseas workers.

It also shows that the ambitions held by larger firms to expand and grow their workforce are frustrated by a lack of skilled labour in the region, with many turning to overseas workers.

The chamber says the Government’s ambition to reduce net migration is “of particular concern”.

Its calls were last night backed by EEF, the body which represents manufacturing companies in the region.

NECC chief executive James Ramsbotham said: “With unemployment expected to peak at 2.77m in 2012, business is expected to play its part in creating growth and jobs. The research shows that many firms are unable to find the skilled workers they need in the UK.

“It is vital that we improve skills in the North East to meet the needs of business, but this will take time and firms need the freedom to bring the best people into the region’s workforce rather than lose out to competitors elsewhere. For some, hiring workers from overseas allows them to access the skills they need.”

The survey shows that less than a third of businesses in the region (32%) believe that the UK workforce is more skilled than other EU countries. Almost half (47%) of firms with more than 50 staff employ some migrant workers.