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Immigration benefits UK economy, say Treasury independent advisers Immigration benefits UK economy, say Treasury independent advisers
(35 minutes later)
Immigration is beneficial to the economy because new arrivals are likely to be of working age and contribute in taxes, the Treasury's independent advisers have said.Immigration is beneficial to the economy because new arrivals are likely to be of working age and contribute in taxes, the Treasury's independent advisers have said.
Chairman of the Office for Budget Responsibility, Robert Chote, said letting more immigrants into the UK "does tend to produce a more beneficial picture" for the public purse. Robert Chote, the chairman of the Office for Budget Responsibility, said letting more immigrants into the UK "does tend to produce a more beneficial picture" for the public purse.
His comments come at a time of political sensitivity over the issue of immigration, with the prime minister, David Cameron, promising to reduce the flow of people into Britain. His comments came at a time of political sensitivity over immigration, with the prime minister, David Cameron, promising to reduce the flow of people into Britain.
Under pressure from public opinion polls, Cameron has focused on cutting benefits available to some new arrivals, especially those from the European Union, with the backing of the Liberal Democrats and potentially Labour.Under pressure from public opinion polls, Cameron has focused on cutting benefits available to some new arrivals, especially those from the European Union, with the backing of the Liberal Democrats and potentially Labour.
The issue has risen to the top of the agenda as Ukip and backbench Tory MPs have stoked fears about pressure on public services if there is an influx of Bulgarian and Romania migrants now that labour market controls have been lifted this year.The issue has risen to the top of the agenda as Ukip and backbench Tory MPs have stoked fears about pressure on public services if there is an influx of Bulgarian and Romania migrants now that labour market controls have been lifted this year.
However, Chote told MPs on Tuesday that foreign workers are usually contributors to the economy, suggesting reducing immigration could be financially counterproductive and mean it takes longer for the Treasury to balance the books. However, Chote told MPs on Tuesday that foreign workers were usually contributors to the economy, suggesting reducing immigration could be financially counterproductive and mean it takes longer for the Treasury to balance the books.
Chote told the Treasury select committee: "Because they're more likely to be working age, they're more likely to be paying taxes and less likely to have relatively large sums of money spent on them for education, for long-term care, for healthcare, for pension expenditure."Chote told the Treasury select committee: "Because they're more likely to be working age, they're more likely to be paying taxes and less likely to have relatively large sums of money spent on them for education, for long-term care, for healthcare, for pension expenditure."
His comments back up the OBR's view that the economy is reliant on migrant labour and the taxes paid by immigrants to keep funding public services.His comments back up the OBR's view that the economy is reliant on migrant labour and the taxes paid by immigrants to keep funding public services.
This view is shared by the director of the National Institute of Economic and Social Research and former chief economist Jonathan Portes, who has long argued that immigration has a net positive contribution on the economy. This view is shared by the director of the National Institute of Economic and Social Research and former chief economist, Jonathan Portes, who has long argued that immigration makes a net positive contribution to the economy.
However, the Ukip leader, Nigel Farage, has challenged this stance by arguing that some things matter more than money.However, the Ukip leader, Nigel Farage, has challenged this stance by arguing that some things matter more than money.
In last week's BBC documentary on immigration, he said: "If you said to me, 'Do you want to see another five million people come to Britain, and if that happened we would all be slightly richer', I would say, 'Do you know what? I would rather we were not slightly richer…' I do think the social side of this matters more than the pure market economics." In a BBC documentary on immigration last week, he said: "If you said to me, 'Do you want to see another 5 million people come to Britain, and if that happened we would all be slightly richer', I would say, 'Do you know what? I would rather we were not slightly richer …' I do think the social side of this matters more than the pure market economics."
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