The CBI has responded to the government announcement about how the UK's future immigration system will work.

Carolyn Fairbairn, director general of the CBI, said: "Getting a new immigration system right on day one will be critical for economic growth and the UK's global reputation, as it forges a new path outside the EU.

"Firms recognise and accept that freedom of movement is ending, and have sought a system that is both open and controlled, valuing people's contribution beyond their salary, while retaining public confidence.

"Several aspects of the new system will be welcomed by business, particularly abolishing the cap on skilled visas, introducing a new post-study work visa for overseas students, and reducing the minimum salary threshold from £30,000.

"Nonetheless, in some sectors firms will be left wondering how they will recruit the people needed to run their businesses. With already low unemployment, firms in care, construction, hospitality, food and drink could be most affected.

"Firms know that hiring from overseas and investing in the skills of their workforce and new technologies is not an 'either or' choice - both are needed to drive the economy forward.

"So careful implementation across all UK nations and regions will be required. A regularly reviewed shortage occupations list, with promises of further flexibility, will be vital for the effectiveness of the new system. Above all, the government must work with employers and employees - especially smaller firms - to ensure they have the time to adapt to new policies and practices."