BUSINESS leaders gave Mrs May’s speech a mixed reaction, welcoming the clarity on her objectives but wary about the final deal she would ultimately achieve.

CBI Director-General Carolyn Fairbairn said the Prime Minister had “changed the landscape” by reducing the options for “a barrier-free trading relationship between the UK and the EU”.

She said the PM was now under pressure to deliver her goal of "a more prosperous, open and global Britain, with the freest possible trade between the UK and the EU" with an orderly exit.

Read more: Nicola Sturgeon warns Theresa May that hard-Brexit means second independence referendum all but inevitable

“Businesses want to make a success of Brexit but will be concerned about falling back on damaging WTO [World Trade Organisation] rules.”

Liz Cameron, chief executive of Scottish Chambers of Commerce, said: “Future migration to Scotland must be sufficient to meet the particular economic and skills needs of Scottish businesses, whilst at the same time guaranteeing the right of existing staff to remain and work here.”

Allie Renison, head of Europe and trade policy at the Institute of Directors, said some firms would "regret" leaving the single market but "they will at least be able to plan on that basis".

She added: “Business leaders will be heartened by the prime minister’s strong argument for the value of free trade, an argument currently being made by all too few global leaders.”

Read more: Nicola Sturgeon warns Theresa May that hard-Brexit means second independence referendum all but inevitable

Ann Francke, chief executive of the Chartered Management Institute, said it was now “inevitable” that the number of foreign workers coming to the UK would fall.

“We need to invest heavily in homegrown talent now to ensure that we have the skilled workers capable of plugging the gaps.”

The trade body for the financial services industry praised the plan for a “bespoke agreement” which might include the continued passporting of UK financial services throughout the EU.

TheCityUk chief executive Miles Celic said: “The prime minister’s assertion that the industry must be able to provide its services cross-border post-Brexit will benefit firms and customers.”

The British Retail Consortium warned against any deal which increased shop prices.

Chief executive Helen Dickinson said: “It is crucial that Britain gets a new deal that works for ordinary British consumers, which doesn’t hit them with the costs of new import tariffs at a time when the pound is already weakened.”

Read more: Nicola Sturgeon warns Theresa May that hard-Brexit means second independence referendum all but inevitable

TUC general secretary Frances O’Grady welcomed the commitment to protect workers’ rights. She said: “The best way to do this is for the prime minister to agree that UK workers’ rights will always be as good as, or better, than workers’ rights in the rest of the EU.”

Pro-independence group Business for Scotland said the UK government’s economic strategy was driven by “old fashioned, isolationist, British nationalism”, and Mrs May’s negotiating tactics seemed no more than “sticking her fingers in her ears and humming Rule Britannia”.

Chief executive Gordon MacIntyre-Kemp said: “A second independence referendum is now inevitable and most likely will take place in May 2018.”

With the UK agriculture industry exporting 72 of its products to the EU, the National Union of Farmers said it was vital that Britain has the best possible access to trade with Europe

Mike Cherry, national chairman of the Federation of Small Businesses, said his members wanted a “bold and ambitious” free trade agreement with the EU and it was vital the PM stuck to her pledge to have a smooth transition to the new regime, avoiding a “cliff-edge”.

He said: “We have pressed the government hard to guarantee the right to remain for non-UK EU nationals in existing workforces, and no early cut-off date. Any future system must help small firms to easily recruit the right person, for the right job, at the right time.”