MAKE MONEY FOR THE UK
(21st February 2001)
to the UK contributed around £2.5 billion to the Exchequer
in 1999/2000 according to a report published today by the Home Office.
Overall, migrants contributed £31.2 billion in taxes while
consuming £28.8 billion in benefits and services, a net fiscal
contribution of approximately £2.5billion. This equates to
around 1p on the basic rate of income tax.
the 'The migrant population in the UK: fiscal effects' report, Paul
Wiles Director of Research at the Home Office states "The public
debate over migration into the UK is often over-simplistic and ill
informed, sometimes distorted by myths about the extent to which
migrants draw on the welfare system, and without sufficent appreciation
of the benefits they can bring."
report also indentifies the fact that individuals who are better
qualified and fluent in English will perform better economically,
and therefore fiscally, than their less-skilled counterparts. Policies
designed to improve migrants' social and economic potential, for
example, by improving levels of skills and English language proficiency
and by tackling social exclusion are likely to help.
paper concludes that, overall, the current population of first-generation
migrants in the UK perform well economically and make a net fiscal
contribution. However, some do less well economically than others.
Office Minister Lord Rooker said: "This is an important piece
of research that has helped shape the development of our new approach
to inward migration. Its influence can clearly be seen in the proposals
contained in the White paper. This is, of course, only one aspect
of the contribution that migrants make to the UK. Migrants bring
diverse skills and experience to boost the UK economy. They set
up new businesses and create new jobs. Inward migration can also
increase our gross domestic product (GDP) and our income. And just
as important is its social and cultural impact on our economy making
us a richer and more diverse place to live. "
can download the
Migrant population in the UK:fiscal effects' report from the
Home Office website.