Neil Carberry, CBI Managing Director for People, said:
“This report rightly highlights employers' concerns regarding future access to skills and labour from our largest and closest trading partner.
“While firms recognise that freedom of movement as we know it will end, restricting access to EU workers - at a time of record employment rates - would leave companies without the staff they need to grow and invest.
“If Britain is continue competing globally, it will need to take an open approach to migration, with appropriate controls to maintain public support.
“As the report notes, firms are concerned that applying non-EU rules to citizens from our closest trading partner would be disastrous for the economy, with smaller companies hit hardest.
“Overall, EU migration has had a positive impact for the UK economy, creating jobs, growth, and helping to pay for public services such as roads, schools and hospitals.
“We hope the Government uses this evidence in designing a new system that shows Britain remains open to the world."