A separate immigration system for Scotland has been ruled out by the UK government, despite earlier suggestions that it was being considered.

Labour MP John Grady had indicated that Home Secretary Yvette Cooper was looking at the idea of a visa to help Scotland meet skills shortages.

Mr Grady, the member for Glasgow East, said yesterday that the migration advisory committee – an independent public body that advises ministers – was looking at the issue “very carefully”.

However, a UK government source has denied that there is any such plan, saying: “We are not at all considering a Scottish visa system.”

A proposal in 2020 from the Scottish government for a pilot scheme that would exempt certain businesses from UK rules on hiring overseas workers was blocked by the former Conservative administration.

There has been talk of a separate Scottish system being based on individual tax codes north of the border.

SNP MP Stephen Gethins will table a bill on Thursday seeking an amendment to the Scotland Act 1998 to enable the Scottish government to set up a Scottish visa., but this now looks to be forlorn hope.

“The SNP is absolutely clear that we need a Scottish visa to address our demographic challenges and the damage caused by Brexit – it’s now up to Scottish Labour MPs to back us in those calls and put Scotland’s interests first,” he said.