By Jonathan Davies

The government's plans to cut immigration are "punishing businesses", according to the Institute of Directors (IoD) and think tank British Future.

Figures released today (Thursday) show that net migration rose to 330,000 in the year to March, the largest number on record. The Home Office says it remains committed to reducing migration.

But the IoD and British Future believe that the government fulfilling its plans to cut immigration would have an adverse affect on the British economy.

The two organisations are calling for a "comprehensive immigration review" to assess the economic impact of fulfilling the target. In 2011, the Prime Minister promised to reduce net migration to tens of thousands.

Sunder Katwala, director of British Future, said: "The prime minister currently has no long-term plan to meet his net migration target. It is little wonder there is such low public trust on immigration and the government's ability to manage it.

"Responding to each damaging set of immigration figures with new ad-hoc policies is no way to manage such an important issue.

"A comprehensive immigration review would set out what's possible and what isn't. It could also give the public more of a say in what happens - providing impartial facts about the impacts of different policies on the economy, society and public services."

Simon Walker, director general of the Institute of Directors, said: "Scrabbling around to find measures to hit a bizarre and unachievable migration target is no way to give British businesses the stable environment they need.

"Combined with ministers' increasingly strong rhetoric on immigration, the UK's reputation as an open, competitive economy is under threat."