Small firms may lose foreign staff

Small businesses face the prospect of huge gaps in their workforces as migrant workers return home, according to research by accounting and business service Tenon.

The research showed that the number of SMEs employing workers from abroad has more than doubled in the past two years.

In 2006 21% of small companies employed staff who were not from the UK, a figure that has now risen to 48% - meaning that if large numbers of migrant workers left the UK it could have a severe impact on SMEs.

The survey revealed that just under a third of entrepreneurs are concerned that foreign workers under their employment will leave the country, resulting in a staff shortage.