A FIFTH of all Scottish firms could go the wall or be forced to “radically change their business model” because of Boris Johnson’s post Brexit immigration plans, according to a new report.

The study, by the Federation of Small Businesses (FSB) in Scotland, also revealed that companies here have had more difficulty recruiting staff compared to small firms south of the border.

And 40% of Scottish small employers have at least one EU worker on the books – an increase of 14% since 2017. By comparison, the UK average is 26%, an increase of 5% over the same period.

Alister Jack, the Secretary of State for Scotland has insisted that the government’s new points based immigration system would be “good news for the Scottish economy”.

But ever since details of the proposals first emerged last Wednesday they have been panned by terrified trade bodies and businesses.

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Even his own party was reportedly livid at the proposals which would make it far harder for people from overseas to come and live and work in the UK.

Effectively, only those skilled workers, fluent in English with a promise of earning over £25,600, will score enough points to be able to come into the country.

There would be some exceptions for industries where there is a shortage of workers, but they would still need to be earning at least £20,480.

In their report, the FSB called for the government to offer would-be migrants extra points for working in Scotland.

They also suggested a separate visa for remote parts of Scotland alongside other parts of the UK, as recommended by the Migration Advisory Committee and the Scottish Government.

The FSB also call for the creation of an additional route for migration in Scotland using the Scottish income tax code – a scheme which would be designed and operated by the Home Office.

They also said there needed to be an urgent review of the UK government’s Innovator Visa, which has been granted to just 14 individuals since its introduction last year.

FSB’s Scotland Policy Chair, Andrew McRae, said: “There are now more than 100,000 EU workers in employment in cities, towns and villages across the country. Needless to say, the imminent introduction of a new way of hiring workers from outside the UK is a concerning prospect.

“Against a backdrop of weak economic growth, a buoyant labour market and an ageing population, it’s critical that we get the post-Brexit immigration system right. The tight timescales mean there’s no margin for error. Getting it wrong risks business closures.”

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Romanian born Ramona Obafemi, who runs the Highlander Café in Aberdeen said it was “very important for my business to be able to continue to hire the best person for the job – and more often than not that’s applicants from foreign backgrounds.”

The SNP’s Tom Arthur called for all MSPs to work together on lobbying for a separate visa for Scotland.

He said:“This report lays bare the devastating impact the Tories’ immigration plans will have for business owners in Scotland.

“Small businesses are the backbone of our economy and it’s time for Boris Johnson to get his head out the sand and listen to their needs before it’s too late.

“It’s shameful that not a single Scottish Tory MSP or MP can bring themselves to speak out against these plans that will force thousands of businesses north of the border to close their doors for good.”