More than half of small businesses with EU workers are worried about finding people with the right skills or growing their business post-Brexit, according to new research from the Federation of Small Businesses.

The FSB's latest report, 'A skilful exit: What small firms want from Brexit', shows one fifth (21 per cent) of small employers currently have EU staff with nearly three-quarters (72 per cent) of these small firms having recruited all of their EU workers when they were already living in the UK.

More than half (56 per cent) of small businesses with EU employees say they are also concerned about being required to enforce new immigration rules post-Brexit.

The research highlights the need for small firms to have continued access to labour and skills from the EU post-Brexit.

It finds that small businesses with EU workers mainly employ mid-skilled staff (47 per cent), such as care and construction workers, mechanics and office managers.

If Brexit creates additional barriers to recruiting EU citizens, small firms that employ EU workers would consider moving their business abroad (13 per cent), reducing operations (13 per cent), or even closing down (eight per cent).

The FSB is calls on the Government to guarantee, as soon as possible, the right to remain for EU citizens in the workforce.

Ken Simpson, the FSB regional chairman for Gloucestershire and the West of England said: "These figures show that a lot of small businesses employ workers from abroad and many of them are already concerned about filling their vacancies in the future if there are too many restrictions on movement.

"It must be a priority, therefore, to reassure EU workers who are here now that they will have a right to stay post-Brexit.

"Looking ahead, many small firms with EU staff are genuinely worried they will lose access to some of the key skills they need to grow especially as the available employment pool is so small already in some sectors."

As the Government defines its new approach to immigration, the FSB say it is crucial that small firms aren't left battling layers of red tape to recruit the workers they need.

The FSB's national chairman Mike Cherry said: "It's crucial that small firms are given time after the UK leaves the EU to prepare for new immigration arrangements.

"There can't be a sudden cliff edge preventing small firms from accessing the workers they need.

"This means having sensible transitional arrangements first, followed by the phased implementation of a new immigration system.

"Restrictions on immigration will be felt more acutely by small businesses.

"Most small firms don't have HR departments to deal with complex immigration procedures, or the time and resources to deal with swathes of additional paperwork or extra costs.

"They are least well-placed to cope with losing staff, or dealing with a burdensome application process from the government to retain and hire new staff.

"So it is vital that the Home Office engages with small businesses as early as possible on the design of a new immigration system to ensure affordability and ease of use.

"Otherwise, as our research shows, the consequences for small business growth and survival could be severe."

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