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'IMMIGRANTS CONTRIBUTE MORE TO THE PUBLIC PURSE THAN UK-BORN'

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The UK's immigrant population contributes relatively more to the public purse than their UK-born counterparts accor...
The UK's immigrant population contributes relatively more to the public purse than their UK-born counterparts according to research published today by the Institute for Public Policy Research.

IPPR research shows total revenue from immigrants grew in real terms from£33.8bn in 1999-00 to£41.2bn in 2003-04. This 22 per cent increase compares to a 6 per cent increase for the UK-born. The gap between the two contribution rates has been increasing in recent years as newer immigrants are filling vacancies in the higher-ends of the economy and paying more taxes.

'Paying their way: The fiscal contribution of immigrants in the UK' is based on original analysis using data from the Labour Force Survey and the Office of National Statistics. It evaluates the net fiscal contribution of immigrants and finds:

* in 2003-4 for every£100 that the UK-born contributed to the exchequer, immigrants contributed£112. This is up from£105 for every£100 in 1999-00;

* immigrants made up 8.7 per cent of the population but accounted for 10.2 per cent of all income tax collected (2003-04);

* immigrants earn about 15 per cent more in average weekly income than UK-born; and

* each immigrant generated£7,203 in government revenue on average in 2003-04, compared to£6,861 per non-immigrant; similarly each immigrant accounted for£7,277 of government expenditure on average, compared to£7,753 per non-immigrant.

IPPR director Nick Pearce 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.'

'Paying their way: the fiscal contribution of immigrants in the UK' by Dhananjayan Sriskandarajah, Laurence Cooley and Howard Reed, is available here.

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