New fines for Burnley, Pendle and Ribble Valley employers who hire illegal workers and a tough new points system - so only the best can work here - are among measures introduced in the biggest shake-up of the immigration system for 45 years.

Britain's Australian-style points system kicks-off with new rules for highly skilled foreign nationals currently working in the UK who want to extend their stay.

The Government is also introducing a licensing system for employers who want to recruit from overseas and bring skilled workers into the UK. No company will be granted a sponsor's licence without being approved in advance by the Border and Immigration Agency.

Home Secretary Jacqui Smith said: "The introduction of our Australian-style points system will ensure only those with skills the country needs can come.

"Migrants benefit this country economically, contributing an estimated £6bn to our national output, as well as socially and culturally and it is right we have a system which is fair but firm, accessible but controlled.

"Today's proposals are part of the biggest changes to British immigration policy in a generation which include a new deal for those migrants seeking citizenship here, a new UK Border Agency to strengthen controls at the border and the introduction of ID cards for foreign nationals."

Alongside the Government's plans, rogue employers from today face civil penalties of up to £10,000 for each illegal worker they employ. Those found to have knowingly hired illegal workers could incur an unlimited fine and be sent to prison. The change comes as BIA stepped up action in 2007 against illegal working by 40%.

Immigration Minister Liam Byrne said: "Today sees the start of our points system and the beginning of on-the-spot fines for businesses who employ illegal workers, introduced a day ahead of schedule.

"New £10,000 penalties mean instant justice for those firms who try to undercut others by employing illegal immigrants. With the new compulsory identity cards for foreign nationals later in the year, there can be no excuse for not checking the identity of those applying for jobs.

"The key to shutting down illegal immigration is to shut down illegal jobs. Last year we stepped up our illegal working operations by 40$. Now our enforcement teams have a host of new powers to shut down dodgy bosses who draw illegal immigrants to Britain."

Gill Mortlock, Regional Director for the Border and Immigration Agency in the North West, added: "These changes will have a major effect on every business in the North West which employs migrant workers from outside the European Union. All types of businesses will be affected from takeaways to universities - some of the region's biggest employers.

"Under the new system, migrant workers and their employers will have a much clearer idea what the requirements are to come and work or study in the region.

"We have visited many companies across the North West to explain to employers how the new system works whilst warning of the consequences of failing to comply.

"These massive changes to the UK's immigration system will ensure only workers with the skills to benefit the UK economy come here and continue the long-standing positive contribution that migrants have made to the cultural life of the North West and its economy.

"In addition to the new measures, enforcement activity by the Agency against those employers who break the rules has been stepped up."

Between April and December 2007, 1,150 people in the UK illegally were removed from the North West. There were also 270 successful operations carried out against businesses employing illegal workers in the region.