This Friday business will hopefully get more clarity on the government’s vision for the UK’s future trade relationship with the EU, when Theresa May reveals her plans. Evidence strongly suggests that a comprehensive customs union with the EU, alongside a deep relationship with the single market, is best for jobs, investment and living standards.

But it is equally urgent to get clarity about people. Firms and their employees need to know who can live and work in the UK, now and in the future. This is as important as trade.

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Firms recognise that freedom of movement as we know it will end. But what happens next matters greatly. A lack of access to skills and labour is affecting firms now, gnawing away at confidence already shaken by Brexit uncertainty. At a time of record employment rates, throttling access to EU workers would leave companies unable to find the staff they need to grow.

And if employers can’t find staff, they can’t create jobs in their local communities. The economy and public services suffer. Lower tax receipts mean less money for schools, roads and yes, for our NHS.

The way forward is to do two things in parallel: invest more in the skills of our own young people, while also staying open to skills and labour from overseas. Both are essential, a stark choice between them is false. The building blocks of a successful skills system are in place. Employer-led apprenticeships, T-levels and the new National Retraining Schemecorrect will help give people skills they need for the future. But shortages are harming firms today.

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The government can take three steps now to build a stairway to certainty. First, guaranteeing the rights of EU citizens already here – even in the event of a no-deal scenario – is vital. Second, firms must know that there will be enough time to adjust to new rules. A transition period to a new migration system is a must-have, irrespective of the wider deal with Brussels. And third, any idea of copying and pasting the non-EU visa system for EU nationals should be ruled out. It would be disastrous for the economy, hitting smaller companies hardest.

The UK is a great place to do business. But to continue competing globally, it must remain open to the world. To protect jobs and prosperity for future generations, we will need to take an open approach to migration.

Carolyn Fairbairn is director general of the CBI

