Workers from EU newcomers Bulgaria and Romania use loopholes in UK legislation to travel into the country.

They present themselves as self-employed, when they indeed are “unskilled cheap labour,” The People said.

UK laws restrict access of unskilled workers to the country, but are helpless to stop those who claim to enter the country to set up a business.

‘Shady’ job agencies in Bulgaria and Romania help people present themselves as contractors in order to travel to the UK where they usually work as hotel staff, lapdancers and hookers, The People said.

UK’s former home secretary John Reid, who imposed restriction of Bulgarian and Romanian workers' entry to the UK in 2006, said that “the terms of the Accession Treaty do not allow us to place restrictions on EU nationals’ rights to come here to set up a business.”

Recent home office data showed that in the first three months of 2007 nearly 115 Romanians and Bulgarians per day received permits to work in the UK as self-employed or on a skills permit.