Limits on skilled workers would hit UK growth - Mayor of London

LONDON (Reuters) - Britain will be hit by lower tax revenues and weaker economic growth if it limits the number of skilled European Union workers entering the capital as part of its Brexit negotiation, the Mayor of London warned on Wednesday. Sadiq Khan, who represents one of the most diverse cities in the world, said he also feared that Theresa May's government was not listening to the concerns of business, prompting him to consider a "London-specific solution" to the problem. "London's businesses must retain access to the skilled workforce they need in order to grow - it's absolutely essential to protecting jobs, growth and tax revenues across Britain over the next decade," Khan will tell the Institute of Directors later on Wednesday, according to excerpts from his office. "I will keep pushing the government to recognise this vital need in their negotiating position, but it doesn't look like they are listening." Khan has said he will push for a London-specific solution if the government cuts off access to skilled workers, although he has yet to outline how that would work. Reports from the London Chamber of Commerce and City of London Corporation have suggested that a London work permit could help to combat the effect of Brexit in the capital. Such a scheme would allow employers in London to sponsor skilled foreign workers after Britain leaves the EU. The British government has said the June 23 vote to leave the EU was a clear signal from voters that immigration is too high. Prime Minister May has also stressed that the Brexit deal she is seeking would be Britain-wide, without regional exceptions. Last month, May's government was forced to drop a plan to ask companies to list the number of foreign workers they employed in a bid to understand the economy and its need for foreign workers, following an outcry from companies and the opposition. London has one of the most international workforces in the world with 12.5 percent of the workforce born elsewhere in Europe. Almost 60 percent of people living in the capital voted to remain in the European Union in June's referendum. Khan's office said the mayor planned to host a summit early next year to bring together industry leaders and experts to keep up the pressure on ministers over the issue. (Reporting by Adela Suliman; editing by Stephen Addison)