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Immigration 'small benefit' to UK Immigration 'small benefit' to UK
(about 6 hours later)
Record levels of immigration have had "little or no impact" on the economic well-being of Britons, an influential House of Lords committee has said.Record levels of immigration have had "little or no impact" on the economic well-being of Britons, an influential House of Lords committee has said.
Instead, competition from immigrants has had a negative impact on the low paid, training for young UK workers and has contributed to high house prices.Instead, competition from immigrants has had a negative impact on the low paid, training for young UK workers and has contributed to high house prices.
The peers, including two ex-chancellors and other Cabinet members, say there should be a cap on immigration levels.The peers, including two ex-chancellors and other Cabinet members, say there should be a cap on immigration levels.
Ministers oppose an annual cap. The Conservatives say they back a limit.Ministers oppose an annual cap. The Conservatives say they back a limit.
In their report, "The Economic Impact of Immigration", the peers said the government "should have an explicit target range" for immigration and set rules to keep within that limit.In their report, "The Economic Impact of Immigration", the peers said the government "should have an explicit target range" for immigration and set rules to keep within that limit.
'Inconsistencies''Inconsistencies'
It suggested that the rights of people to follow relatives who have settled in the UK "could be modified if the government chose to do so".It suggested that the rights of people to follow relatives who have settled in the UK "could be modified if the government chose to do so".
And it rejected claims by ministers that a high level of immigration was needed to prevent labour shortages as "fundamentally flawed".And it rejected claims by ministers that a high level of immigration was needed to prevent labour shortages as "fundamentally flawed".
If you have got that increase in numbers and you haven't got any economic benefit from it, you have got to ask yourself, is that a wise thing to do? Lord Wakeham, inquiry chairmanIf you have got that increase in numbers and you haven't got any economic benefit from it, you have got to ask yourself, is that a wise thing to do? Lord Wakeham, inquiry chairman
The peers also warned that the government's new points-based immigration system carried a "clear danger of inconsistencies and overlap".The peers also warned that the government's new points-based immigration system carried a "clear danger of inconsistencies and overlap".
Inquiry chairman Lord Wakeham said: "Looking to the future, if you have got that increase in numbers and you haven't got any economic benefit from it, you have got to ask yourself, is that a wise thing to do?Inquiry chairman Lord Wakeham said: "Looking to the future, if you have got that increase in numbers and you haven't got any economic benefit from it, you have got to ask yourself, is that a wise thing to do?
"That is why we want the government to look at it.""That is why we want the government to look at it."
House price risesHouse price rises
Committee chairman Lord Vallance of Tummel, a former CBI president, said the government's analysis of the economic impact from immigration was "very shaky".Committee chairman Lord Vallance of Tummel, a former CBI president, said the government's analysis of the economic impact from immigration was "very shaky".
They show unequivocally that the benefits of the current immigration policy to ordinary UK citizens are largely non-existent David Davis, shadow home secretaryThey show unequivocally that the benefits of the current immigration policy to ordinary UK citizens are largely non-existent David Davis, shadow home secretary
The peers' report said: "The available evidence suggests that immigration has had a small negative impact on the lowest-paid workers in the UK and a small positive impact on the earnings of higher-paid workers."The peers' report said: "The available evidence suggests that immigration has had a small negative impact on the lowest-paid workers in the UK and a small positive impact on the earnings of higher-paid workers."
It added there was a "clear danger" immigration had hit training and apprenticeships offered to British workers, and had contributed towards demand for housing and high house prices.It added there was a "clear danger" immigration had hit training and apprenticeships offered to British workers, and had contributed towards demand for housing and high house prices.
Of the government's new points-based system, which breaks immigration into five new tiers based largely on earning power, the report says: "It is not clear whether the new system will in fact constitute the radical overhaul of the UK's immigration system suggested by the government."Of the government's new points-based system, which breaks immigration into five new tiers based largely on earning power, the report says: "It is not clear whether the new system will in fact constitute the radical overhaul of the UK's immigration system suggested by the government."
'Torn to shreds''Torn to shreds'
The use of GDP as the measure of immigration's economic contribution was "irrelevant and misleading".The use of GDP as the measure of immigration's economic contribution was "irrelevant and misleading".
Instead, GDP per capita - or income per head of the population - would be a better measure, the report said.Instead, GDP per capita - or income per head of the population - would be a better measure, the report said.
"Our general conclusion is that the economic benefits of positive net immigration are small or insignificant," it said."Our general conclusion is that the economic benefits of positive net immigration are small or insignificant," it said.
To say that there is no evidence of the economic benefits of migration is simplistic and misleading Dr Danny SriskandarajaInstitute for Public Policy ResearchTo say that there is no evidence of the economic benefits of migration is simplistic and misleading Dr Danny SriskandarajaInstitute for Public Policy Research
Immigration minister Liam Byrne said the report was "a welcome contribution to our huge immigration shake-up".Immigration minister Liam Byrne said the report was "a welcome contribution to our huge immigration shake-up".
He said it proved the government was right to set up a committee to advise which workers the new points system should let in or keep out and he said a new UK border agency would give Britain "one of the toughest border protection systems in the world".He said it proved the government was right to set up a committee to advise which workers the new points system should let in or keep out and he said a new UK border agency would give Britain "one of the toughest border protection systems in the world".
But Sir Andrew Green, of pressure group Migrationwatch, said the report had "torn to shreds the government's economic case for the massive levels of immigration which they have actively encouraged".But Sir Andrew Green, of pressure group Migrationwatch, said the report had "torn to shreds the government's economic case for the massive levels of immigration which they have actively encouraged".
'Lost track''Lost track'
And shadow home secretary David Davis said the peers had shown "unequivocally that the benefits of the current immigration policy to ordinary UK citizens are largely non-existent".And shadow home secretary David Davis said the peers had shown "unequivocally that the benefits of the current immigration policy to ordinary UK citizens are largely non-existent".
HAVE YOUR SAYImmigrants should be allowed entry only if they have a highly skilled talent that is in short demand in this countryPeter CarstairsSend us your comments
"We are delighted they say there should be an explicit target range for immigration through controls on non-EU applicants," he said."We are delighted they say there should be an explicit target range for immigration through controls on non-EU applicants," he said.
"This is a policy that we have been arguing for, for years and which the government has consistently rejected.""This is a policy that we have been arguing for, for years and which the government has consistently rejected."
Chris Huhne, the Lib Dems home affairs spokesman, said the report made clear that "the government has completely lost track of the number of people who live in this country.Chris Huhne, the Lib Dems home affairs spokesman, said the report made clear that "the government has completely lost track of the number of people who live in this country.
"No wonder there is a total inability to manage immigration or create policies that deal with its effects.""No wonder there is a total inability to manage immigration or create policies that deal with its effects."
But Dr Danny Sriskandarajah, head of migration at the Institute for Public Policy Research, said that to say there were no economic benefits was "simplistic and misleading".But Dr Danny Sriskandarajah, head of migration at the Institute for Public Policy Research, said that to say there were no economic benefits was "simplistic and misleading".
"Recent immigration has brought immense benefits to the UK in terms of economic growth, increased competitiveness and the delivery of public services," he said."Recent immigration has brought immense benefits to the UK in terms of economic growth, increased competitiveness and the delivery of public services," he said.
Supermarket chain Sainsburys was among those to praise foreign workers in evidence to the committee. it said it had found foreign-born workers to be highly motivated with a strong work ethic which rubbed off on the British-born staff.Supermarket chain Sainsburys was among those to praise foreign workers in evidence to the committee. it said it had found foreign-born workers to be highly motivated with a strong work ethic which rubbed off on the British-born staff.