Fines in employers 'pander to racism'

The Government yesterday ran into a wall of opposition to any moves to fine employers who hire illegal immigrants.

Business leaders combined with immigrants' groups, Opposition politicians and the Trades Union Congress to spurn the idea.

The Home Secretary, Michael Howard, is understood to have gained Cabinet agreement to the plan which is set to be announced in next month's Queen's Speech. But both the Institute of Directors and the Confederation of British Industry condemned the scheme, warning it would heap burdens on employers and lead to discrimination against ethnic minorities in the workplace.

Labour accused the Government of "pandering to racism", while one immigrants' group claimed ministers were planning to "play the race card".

But Nicholas Baker, who stood down as Home Office minister responsible for immigration last week, warned that Britain was becoming a "magnet" for bogus asylum seekers.

He said the measure was essential to stem a dramatic increase in illegal immigrants who were "stealing" the jobs of British workers. "The number of people coming as bogus asylum seekers is on the increase and this measure to introduce sanctions on employers of illegal immigrants is necessary. If you want to deter people from coming here illegally, and deter them from working here, you must stop the ability for them to have jobs," he said.

The Home Office has confirmed it is looking at some form of sanctions on employers of illegal immigrants. A spokeswoman said Britain and the Irish Republic were the only two countries in the European Union without such sanctions.