British firms are worried about the loss of EU migrant labour after Brexit because their UK counterparts are lazier and take more time off work, an official government report has found.

The Migration Advisory Committee found that workers from Europe are "a high quality, eager workforce" compared to UK-born workers, leading employers to rely on them instead.

EU workers, especially those in low-skilled jobs, are also paid less.

Businesses fear they will not be able to employ staff from the EU after Brexit, forcing them to spend more on less productive British staff which could drive up prices or force production abroad where it is cheaper.

The report, which will be followed later this year by a set of final recommendations for the Government, also warned that lower migration from the EU would cause the populations of Wales, Northern Ireland, Scotland and some areas of Northern England to stagnate or fall.