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27/04/2005
Migrant workers contribute more taxes, research claims
Immigrants in the UK contribute relatively more taxes than UK-born workers, new research has claimed.
Research conducted by the Institute for Public Policy Research (IPPR) found that total revenue generated from immigrant workers grew in real terms from £33.8 billion in 1999-00 to £41.2 billion in 2003-04 – an increase of 22% compared to a 6% increase for UK-born workers. The IPPR said that the gap between the two contribution rates has been increasing in recent years, because newer immigrants are filling vacancies in the higher-ends of the economy and paying more taxes.
The IPPR’s research, which was based on original analysis using the data from the Labour Force Survey and the Office of National Statistics, found that immigrants made up 8.7% of the population, but accounted for 10.2% of all income tax collected - contributing £112 to the exchequer for every £100 that UK-born workers contributed.
The IPPR also found that immigrants generated on average about £7,203 in government revenue, compared to £6,861 for non-immigrants, but only accounted for about £7,277 of government expenditure on average, compared to £7,753 per non-immigrant.
Nick Pearce, IPPR director said: "Our research shows that immigrants make an important fiscal contribution to the UK and pay more than their share. They are not a drain on the UK’s resources."
However, independent think-tank Migrationwatch said that studies conducted in the United States, Canada and Holland have indicated that the benefit to the host community is “extremely small”.
Migrationwatch said that it was assessed at one tenth of one per cent of GDP per head per year – the equivalent of £25 per head per year in Britain.
The Dutch study concluded that the overall net gain in income of residents was likely to be small or even negative.
Migrationwatch also estimated that only 40% of immigrants, who came to the UK in 2003, entered the country for the purpose of finding work. The others were estimated to be relatives (30%), students (14%) and asylum seekers (14%). The think-tank also claimed that the foreign-born work force had a “consistently higher” unemployment rate than the British workforce – 8.5% compared to 5.5%.
Migrationwatch also criticised claims made by the Director General of the CBI regarding the economic benefits of the current immigration levels, which have been described as “both inaccurate and misleading”.
(KMcA/SP)
Research conducted by the Institute for Public Policy Research (IPPR) found that total revenue generated from immigrant workers grew in real terms from £33.8 billion in 1999-00 to £41.2 billion in 2003-04 – an increase of 22% compared to a 6% increase for UK-born workers. The IPPR said that the gap between the two contribution rates has been increasing in recent years, because newer immigrants are filling vacancies in the higher-ends of the economy and paying more taxes.
The IPPR’s research, which was based on original analysis using the data from the Labour Force Survey and the Office of National Statistics, found that immigrants made up 8.7% of the population, but accounted for 10.2% of all income tax collected - contributing £112 to the exchequer for every £100 that UK-born workers contributed.
The IPPR also found that immigrants generated on average about £7,203 in government revenue, compared to £6,861 for non-immigrants, but only accounted for about £7,277 of government expenditure on average, compared to £7,753 per non-immigrant.
Nick Pearce, IPPR director said: "Our research shows that immigrants make an important fiscal contribution to the UK and pay more than their share. They are not a drain on the UK’s resources."
However, independent think-tank Migrationwatch said that studies conducted in the United States, Canada and Holland have indicated that the benefit to the host community is “extremely small”.
Migrationwatch said that it was assessed at one tenth of one per cent of GDP per head per year – the equivalent of £25 per head per year in Britain.
The Dutch study concluded that the overall net gain in income of residents was likely to be small or even negative.
Migrationwatch also estimated that only 40% of immigrants, who came to the UK in 2003, entered the country for the purpose of finding work. The others were estimated to be relatives (30%), students (14%) and asylum seekers (14%). The think-tank also claimed that the foreign-born work force had a “consistently higher” unemployment rate than the British workforce – 8.5% compared to 5.5%.
Migrationwatch also criticised claims made by the Director General of the CBI regarding the economic benefits of the current immigration levels, which have been described as “both inaccurate and misleading”.
(KMcA/SP)
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