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Business leaders in London today issued a warning that a “sudden end” to EU free movement on October 31 would cripple firms.

Skill-starved companies are already struggling to fill key vacancies and cannot afford to lose talented potential recruits, said the Federation of Small Businesses in the capital.

The warning follows official figures showing the number of EU citizens moving to this country for jobs has halved since the Brexit referendum.

FSB chairman Mike Cherry said a third of small firms had already reported their growth was being constrained by inability to find the right talent.

He added: “European business owners and employees are central to the UK’s economic success. One in five small employers rely on the skills of EU citizens. A sudden end to free movement on November 1 will make a bad situation worse. Business owners need time to prepare.”

Downing Street has confirmed that the Prime Minister intends to end free movement in its current form on October 31.

However, the Government has suggested this will begin with “tougher criminality checks” rather than wider curbs on migration from the EU.

Mr Johnson has promised to consider an Australian-style points scheme to prioritise applicants with skills needed by businesses.

Only 92,000 EU citizens came to the UK for jobs in the 12 months ending in March this year, roughly half the peak total of 190,000 recorded in June 2016.

Meanwhile, Home Secretary Priti Patel will hold talks with her French counterpart after 37 migrants, including six children, tried to reach England in small boats across the Channel.

Another incident off the Sussex coast reportedly involved more than 20 others.