REGIONAL work permits could be implemented in the UK following Brexit, according to analysis by Oxford University's Migration Observatory.

However, the researchers conclude that doing so democratically may require a whole new system of regional government.

Madeleine Sumption, director of the Migration Observatory, said: "Immigration policies that respond to the needs of local areas make sense in theory, but implementing them in practice would be a complex process."

Government officials are working to draw up arrangements which incorporate an end to EU free movement rules, while ensuring that any fall in overseas labour does not damage the economy.

Earlier this year, leaked proposals for curbs on EU migrant labour came under fire from employers, who voiced concern at the potential impact on the UK's agriculture, hospitality and healthcare sectors.

A draft Home Office document suggested the number of EU citizens able to come to the UK for low-skilled work could be limited by a salary threshold, an assessment of the skill level of the occupation, or a direct cap on numbers.

Ministers said the paper did not represent the Government's final position, which will be unveiled later this year.

A separate study by Migration Watch UK, which campaigns for tighter immigration controls, suggested movement between the UK and the EU should remain 'largely unhindered' after Brexit save for new curbs on migration for work.

The group outlined a proposed 'light touch' approach for millions of visitors, businesspeople and tourists who would be free to travel to and from Britain with a passport but without any visa or permit.

But it blueprint says migration for work should take place in defined categories and under specific conditions.