08/08/2006

Immigration could lead to council tax rises

An increase in council tax could be needed in order to fund the cost of immigrants in Britain, the Local Government Association has warned.

The LGA said that official figures underestimated the level of immigration to the UK and warned that rises of 6% on top of inflation-related increases might be needed in some places.

The LGA's claims come after Home Secretary John Reid called for the introduction of a migration advisory committee which would recommend an "optimum" level of immigration.

Sandy Bruce-Lockhart, the LGA chairman, has written to Mr Reid on the subject. In the letter, he said: "Working migrants have become an invisible population whose children need school places, who need to be housed appropriately and, in some cases, need social services. Official statistics have failed to reflect this."

Lord Bruce-Lockhart said that unless accurate up-to-date figures on migration were produced, there could be "severe problems" in the future.

The LGA chairman cited Slough in Berkshire as an example, where official figures indicated that the number of immigrants in the area was far lower than it actually was. According to the figures, 300 migrants settled in Slough in 2004. However, there were 9,000 new National Insurance registrations in the town that year, of which only 150 were for British nationals.

Lord Bruce-Lockhart warned that areas such as Slough could face a 6% surcharge for the next five years on top of existing inflation council tax increases.

The government has insisted that funding is fair and based on the most accurate figures available.

(KMcA/SP)

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