Reducing migrants and immigration will slow UK economy and create more taxes
Decreasing the influx of migrants threatens UK economy and may spur tax hikes
A recent study shows that regulating the flow of migrants into the UK will have downside outcomes on the economy which would lead to an income tax increase.
The studies were stated last Monday in a paper published by the National Institute of Economic and Social Research (NIESR) and that the current Conservative party aims to lessen migration, “from hundreds of thousands to tens of thousands”. It is predicted that by 2060, UK GDP would drop by 11% than it should be.
On the other hand thinktank stated that reaching the Conservative’s target would mean decreasing a big percentage of its net migration and consequently affecting UK’s economy. It is projected that the levels of GDP and GDP per person will plunge by 11% and 2.7% correspondingly. In addition, this strategy will have a substantial blow on public funds which means, to keep the government’s budget stable, a labour tax hike rate has to be raised by 2.2 percentage points in the decreased migration set-up.
According to Anna Rosso, a research fellow at NIESR, there has been a decline of skilled and highly-skilled workers available to businesses in the UK due to the policy reforms that make it harder for students, family members, and skilled workers from outside the EU to migrate to the UK.
The forecast of migration expert, James Hampshire matched the studies made on the economics of migration, saying that the EU’s stand on the free movement of people that permits workers from one member country to openly emigrate in another is just too vital to abandon.
In The World Today, Hampshire added that “It is so central to the single market, and thus the European project as a whole, that undoing it would be the undoing of the EU … However, the EU free movement directive makes clear that the right to move and reside freely is not absolute. In theory, after three months an EU national without a job has no right to remain in another EU country unless they have sufficient means not to become an ‘unreasonable burden’ on the welfare state”.
In a Daily Telegraph last week, David Cameron was quoted as saying that he had a long term economic plan to secure a better future for Britain and controlling immigration is a vital part of it.
According to Guardian / ICM poll in June, 46% of voters are concerned over immigrants who they think are liable for poor terms and conditions stipulated in their employment contracts.
Migration is always an issue that every thriving country has to deal with but companies all over the world need a lot of skilled migrant workers to fill in the job especially in the medical, engineering and IT fields. Countries like the US, Canada, Dubai, Singapore, New Zealand and Australia depend and benefit on migrant workers. It will definitely give an economic downturn to UK, since tax surges will be passed on to its people. Skilled migrants are an essential part of an economic landscape of a country such as the UK.by Images_of_Money by Images_of_Money,