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The UK should "sharply cut back" on the number of people allowed into the country for lower-skilled work, but should take a "light touch" on tourism, according to a new report.

Migration Watch UK laid out its vision for a scheme where visitors, businesspeople and tourists could travel freely to and from Britain without any visa or permit, provided they had a passport.

However, its blueprint suggests that migration for work should take place only in certain categories and under strict conditions.

Introducing a work permit system would slash net migration, according to the group, which campaigns for tighter immigration controls.

Its paper sets out seven different categories, including very highly skilled workers, who would not be subject to any cap under the proposals.

Another group would be those with "intermediate skills" such as bricklayers and plumbers. It says those in this category should also be admitted but for a "time-limited period" of two to three years, while employers would face a charge, increasing annually, to encourage them to train British replacements.

For the intermediate group, there would be no access to public funds and no route to settlement.

There would be provision for the self-employed but with "strong safeguards against abuse", the study says, while a seasonal workers scheme could be revived to meet the needs of the agricultural sector.

Alp Mehmet, vice chairman of Migration Watch UK, said the capping scheme would reduce immigration by about 100,000 a year.

Government officials are working to draw up plans allowing an end to EU free movement rules, while trying to ensure that any fall in overseas labour does not damage the economy.

Earlier this year, leaked proposals for curbs on EU migrant labour came under fire from employers, who voiced concern at the potential impact on the UK's agriculture, hospitality and healthcare sectors.

A draft Home Office document suggested the number of EU citizens able to come to the UK for low-skilled work could be limited by a salary threshold, an assessment of the skill level of the occupation, or a direct cap on numbers.

Ministers said the paper did not represent the Government's final position, which will be unveiled later this year.

A Home Office spokesman said: "After we leave the EU, we will put in place an immigration system which works in the best interests of the whole of the UK.

"As part of our work to develop this system, we have asked the independent Migration Advisory Committee to assess the economic and social impact of EU citizens in all parts of the UK.

"We are carefully considering the options for the future immigration system and will set out our plans later this year."