A parliamentary inquiry conducted by a House of Lords committee reveals that the ten years of record immigration to Britain have yielded minimal economic benefits for the country. Due to report next Tuesday, the committee challenges government assertions that foreign workers contribute £6 billion annually to the nation’s wealth. Instead, it questions the supposed benefits against the increased population and the strain on local services such as health and education, concluding that the overall economic benefits of net immigration are marginal and approach zero in the long run.
The committee, comprising two former chancellors and several former Cabinet ministers, represents the first attempt to assess both the costs and benefits of large-scale immigration. With the population expanding by over 190,000 annually, mainly due to immigration, foreign workers now constitute 12.5% of the labor force, up from 7.4% a decade ago. Critics argue that Labour’s lack of control over borders and the issuance of excessive work permits, especially to Eastern Europe, contributed to the situation.
Ministers, however, contend that without substantial immigration, economic growth would have been slower. A Whitehall paper presented to the committee indicates that migration contributed 15 to 20% of the average output growth of 2.7% per year over the past five years, translating to a £6 billion contribution from foreign workers.
Despite these figures, the committee’s forthcoming report is expected to emphasize the necessity of focusing on immigration’s impact on GDP per head rather than the overall economy. Critics argue that the government overlooked costs associated with crime, security, race relations, health tourism, and the introduction of ailments like TB. David Coleman, a professor of demography at Oxford University, highlighted these exclusions in his evidence to the committee, suggesting a broader consideration of the consequences of large-scale immigration on various facets of society. Richard Pearson, a visiting professor at the University of Sussex’s Centre for Migration Research, raised concerns about the potential displacement of low-skilled indigenous workers by migrants who often accept low wages. The report, when released, is poised to challenge the prevailing narrative on the economic benefits of extensive immigration to Britain.
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