Immigration is “good for London” and caps “likely to be damaging” to UK economy
Economists and Boris highlight benefits to City
The political race to appear tough on immigration and reduce the number of people coming to the UK for work will do long-term damage to the economy, according to economic research released today.
And with politicians pledging to crack down on immigration ahead of next year’s general election, mayor of London Boris Johnson has bucked the trend by stressing the benefits to the city’s economy.
The National Institute of Economic and Social Research (Niesr) this morning published reports on the effects of migration which clash with the drive to reduce the flow of people moving to the UK for work.
Speaking about recent immigration policies, Niesr research fellow Anna Rosso said that more restrictive policies were “likely to be damaging”, adding that the talent pool for business would be reduced.
Over the weekend, Labour’s most prominent economic policymakers were at pains to criticise the country’s previous immigration policies.
“There will be people who say… that freedom of movement is good for the economy. But that is not the consensus of the vast majority,” shadow chancellor Ed Balls told the Telegraph, while shadow work and pensions secretary Rachel Reeves suggested that immigrants should not be allowed benefits until they have contributed through the tax system.
But the mayor took a more positive line about migration to the UK. A spokesman for Johnson said yesterday: “The mayor’s position is that controlled immigration has been and will continue to be good for London”
He added: “Migration is an important part of the capital’s history and plays a vital role in making this the greatest big city in the world. [Johnson] wants London to be the first choice of the brightest and best international students and skilled workers who can make an important contribution to our economy.”
Niesr’s research includes a paper which forecasts the long-term impact of reduced migration for the UK.
According to the authors, if net migration is reduced to 105,000 per year, the UK economy will be 11 per cent smaller by 2060 than would otherwise be the case.
It is currently Conservative party policy to curb immigration even further, down to just tens of thousands of people per year.