UK 'needs MORE immigrants' to cope with ageing workforce and public sector debt

[R1cho]

found this on the daily mail website


BRITAIN needs an influx of further immigrants to deal with the challenges of an ageing UK workforce and high public sector debt, it was claimed today.

The country's economy is under 'unsustainable' pressure to deal with an older workforce nearing retirement and more immigration could be the answer.

The Office for Budget Responsbility (OBR) say allowing 140,000 migrants into the country would help to improve public finances and a talent shortage.

The official forecaster warned if no action is taken the burden of an elderly workforce's pensions and healthcare could wipe out much of the Government's spending cuts.

The report says: "Our analysis shows that overall migration has a positive impact on the sustainability of the public finances over our 50 year horizon.

"There is clear evidence that, since migrants tend to be more concentrated in the working-age group relatively to the rest of the population, immigration has a positive effect on the public sector’s debt dynamics."

The research claims over a 50 year period an influx of seven million immigrants would have a positive impact on the government's debt.

It claims if 140,000 migrants are allowed into the country each year from 2016 public sector net debt to GDP would rise to 99 per cent by 2062/63.

However, their figures showing assuming no gross migration would increase the net debt to GDP ratio to over 174 per cent.

The study says immigrants have a positive effect on the country's GDP and economic levels along with aiding to control public debt.

Robert Chote, chairman of the OBR, said on presenting the report: "Since last year, the underlying deficit and debt path look less favourable.

"But this and the costs of long-term care reform are likely to be offset by the Government's announcement of additional spending cuts in 2017-18 and savings from the single tier pension.

"That said, there are huge uncertainties around the scale of the challenge and the UK is certainly not alone in confronting it."

The OBR said a draft copy of the report had been shown to Chancellor George Osborne earlier this month.

However, the Conservative MP at the time did not reveal any further measures that should be taken into account in light of it.

Prime Minister David Cameron has previously pledged to lower the number of migrants coming into the country to below 100,000 per year.