Lisa O’Carroll, Peter Walker and Libby Brooks

Britain is to close its borders to unskilled workers and those who can’t speak English as part of a fundamental overhaul of immigration laws that will end the era of cheap EU labour in factories, warehouses, hotels and restaurants.

Unveiling its Australian-style points system on Wednesday, the government will say it is grasping a unique opportunity to take “full control” of British borders “for the first time in decades” and eliminate the “distortion” caused by EU freedom of movement.

But industry leaders immediately accused the government of an assault on the economy warning of “disastrous” consequences with job losses and closures in factories and the high street.

Labour and the Liberal Democrats also condemned the plans while Unison, which represents health workers said they “spell absolute disaster for the care sector”.

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