MOVES to make companies hire more British workers and restrict the number of foreign students could be disastrous for Oxfordshire's economy, it has been warned.

Businesses and politicians said high-tech industries – such as IT services, engineering, research and biotechnology – could be hit by the government proposals. All are significant industries in the county.

There were also concerns it would hamper recruitment in social care and tourism, with companies angered by suggestions they could be forced to publish the numbers of foreign workers they employ.

Oxford East MP Andrew Smith said firms like BMW relied on being able to hire skilled foreign workers for specialist roles at its Cowley plant.

He added: "A big worry in Oxford is that workers from abroad are crucial to the local economy.

"Businesses and the universities need to be able to get the staff they require with the minimum amount of bureaucracy.

"We have been a big beneficiary of that in this city, so there will be a lot of interest into how these new policies could work."

Speaking at the Conservative Party conference, Home Secretary Amber Rudd said the changes would help "British people get the opportunities they need to get on in life".

But Oxford hotelier Jeremy Mogford accused ministers of meddling in affairs they did not understand.

He said three quarters of the 200 staff at his firm, Mogford Hotels and Restaurants, were foreign and he struggled to attract local recruits to low-skilled posts.

He added: "Our policy has always been to favour British applicants in the first instance, but that can be very hard and many do not want to work in the kitchens.

"The Government is overstepping its role and needs to leave this alone."

Bob Price, leader of Oxford City Council, said it was 'simply not feasible' to expect companies in some industries to fill all their vacancies with British workers.

The Labour councillor added: "We have a dependence on people who have come from a range of countries around the world and they make a huge contribution to science and technology.

"Signification new restrictions would be a short term and long term disaster and could harm our ability to be competitive."

Under current rules employers have to undertake a resident labour market test if they want to fill a vacancy with a non-EU migrant, which requires them to advertise the post in the UK for 28 days.

But proposals put forward would see new tests created to ensure foreign workers are 'filling gaps in the labour market, not taking jobs British people could do', Ms Rudd said.

Companies would also have to 'be clear about the proportion of their workforce which is international'.

The Government is also examining whether 'student immigration rules should be tailored to the quality of the course'.