30 July, 2017
Meanwhile, immigration minister Brandon Lewis told the BBC Radio 4's Today programme a new immigration system will be in place by March 2019 when the free movement of people between the European Union and the United Kingdom ends.
On Wednesday the Home Secretary, Amber Rudd, set out the government's plans to investigate the effects of European Union migration on the United Kingdom, with the report due towards the end of next year.
A new immigration system will be put in place by March 2019, though the details of this are not yet known.
"Barnier and the envoys expressed doubts on achieving the informal October deadline for sufficient progress given the position of the United Kingdom on the financial bill", a European diplomat told AFP on condition of anonymity.
"Workers from across Europe strengthen our businesses and help our public services run more smoothly - any new migration system should protect these benefits while restoring public confidence", said Confederation of British Industry deputy director Josh Hardie.
"We will be having a new policy, but part of what I'm announcing today is to show that we're going to make sure it's evidence based and that we're going to make sure that it works for the whole country", Rudd told reporters.
Rudd has asked an independent group to conduct a study.
More than a decade of mass immigration from the bloc under freedom of movement rules was a major factor in the June 2016 referendum that saw Britons vote to leave the EU.
Hammond told BBC Radio 4's Today programme that there must be "business as usual, life as normal" for Britons as the United Kingdom exits the EU.
Home Secretary Amber Rudd has asked the independent Migration Advisory Committee to assess the economic role of European Union nationals as plans are developed to control migration from Europe after Brexit.
EU Brexit negotiator Michel Barnier has warned that the start of trade talks may be pushed back to December because Britain is stalling on its exit bill, diplomats said Thursday.
.Mr Muscat, who is particularly well briefed on the Brexit talks while his country holds the year long rotating presidency of the European council, told a Dutch newspaper he thought the tide could be turning on Brexit.
Ms Rudd was speaking after a day of confusion over the British government's plans for immigration, during which ministers appeared to contradict one another.
Current levels of immigration remain near record levels, with the net figure standing at just short of a quarter of a million a year and the gross figure significantly higher.
Last year's referendum to leave the European Union did not set out a specific model for Britain's future relationships with the bloc that is the biggest destination for its exports, and business groups are concerned about the lack of planning since then.