A more relaxed immigration policy should be considered for Scotland, MSPs have said.
Holyrood’s Europe Committee recommended the Scottish and UK governments consider a bespoke solution north of the border following Brexit despite Conservative ministers ruling out different approaches.
The cross party group said the demographic risk Scotland faces if the number of EU migrants drops is “more acute” than for the UK as a whole.
Its report states: “As the majority are of working age, they have increased the size of the working population in Scotland and offset the effects of an ageing population.
“With higher fertility rates, they have also helped reverse population decline.
“The committee therefore believes that there are acute risks to Scotland of a loss of the existing EU migrants or a decline in future migration.”
The likes of Canada, Australia and Switzerland are cited as precedents for a state having different immigration policies within its borders.
The report says the 181,000 EU nationals currently in Scotland are suffering “imposed uncertainty” over their right to remain living and working in the country and calls for the UK Government to allow them to stay without delay.
Amber Rudd, the Home Secretary, has ruled out any separate deal, days after The Courier revealed Conservative ministers would block any bid for Holyrood to control immigration.
This is despite Michael Gove, the Leave campaign leader, suggesting during referendum campaigning that it would be “for Scotland to decide” on immigration numbers post-Brexit.
A UK Government spokesman said: “As we leave the EU, we must face the future together as one United Kingdom.”
Meanwhile, David Mundell, the Scottish Secretary, has refused to rule out a deal suggested by the SNP, which would have Scotland a member of the single market with the UK as a whole outside.
He told the BBC’s Sunday Politics Scotland programme: “It’s not impossible but I believe it is better to proceed on the basis that the Prime Minister has set out on getting access to the single market for the whole of the United Kingdom with a free trade agreement.
“I don’t see the evidence to suggest that Scotland needs or would benefit from a differentiated agreement but my mind is open and we have intensified discussions to look at that.”
Mike Russell, Scotland’s Brexit Secretary, called the statement “a significant concession”.
He added: “The people of Scotland did not vote for Brexit and David Mundell is alone as the only one of the nation’s 59 MPs who backed the UK Government by voting to trigger Article 50 – despite the grave consequences.”