19 October 2007
Immigrants made a more positive contribution to the public finances than native workers last year, Home Office research has suggested.
Home Office minister Liam Byrne published a report on October 16 that, officials claimed, explodes many of the myths surrounding Britain's immigration policy and its impact on the UK economy.
It shows that immigrants pay more in taxes per capita than the UK workforce, contribute more to the public finances than they use, have higher skill levels, limit the impact of an ageing population and have no discernible bearing on unemployment rates among UK nationals.
The conclusions of Byrne's report were due to be discussed at a meeting of the government's Migration Impacts Forum on October 17. The MIF is attended by experts from local government, health, the Office for National Statistics and the business community. It assesses the impact of immigration amid claims from some councils that they have more immigrants in their areas than the ONS acknowledges, putting a strain on health and education services.
One senior member of the MIF told Public Finance that the Home Office's figures would 'introduce some reason to those parts of the immigration debate that have been informed by scaremongering and simple fear about local migrant labour rates'.
Byrne said that his study would allow ministers to 'strike a new balance in Britain's migration policy', but acknowledged councils' concerns. 'We know migration added about £6bn to our economy last year, but we know of wider impacts too.'
The report, The economic and fiscal impact of immigration, shows that the rate of immigration into the UK has slowed by 28% over the past year. It also indicates that migrants earn an average of £29 more per week than UK nationals and contributed 10% of government revenues while using 9.1%.
But a separate survey published on October 17 by eight regional co-ordination groups, including local authority and police representatives, said that most UK regions were experiencing problems because of increased migration.
Pressures on housing, health and education services and increased crime were among concerns raised in the report, which was sent to ministers.
PFoct2007
