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LONDON - The British government's stringent immigration rules are harming businesses in London, according to a report published by a local business group.

Of the 123 London businesses surveyed, 23 percent have found it more difficult to fill vacancies after Britain's coalition government imposed an annual limit of 20,700 non-EU workers entering the United Kingdom this April.

Immigration restrictions are also damaging businesses' export prospects, said the report published on Wednesday by the London Chamber of Commerce and Industry (LCCI).