Please or to access all these features

Politics

Lower migration and the tax gap: raise taxes or ease restrictions?

260 replies

Mouldemort · 28/09/2026 12:50

James Cleverly introduced some serious restrictions on immigration, which Labour have upheld. Mahmood is going to introduce further restrictions. This has had the effect of reducing immigration substantially and forecast immigration (yes, even taking account the new method of counting.)

Immigrants, especially new immigrants, are disproportionate contributors to the UK's tax take, because they tend to be high earners and have no recourse to public funds. The low earners (who have mainly been blocked) are the bedrock of social care. The decrease in immigration has been more that the Chancellor planned for, so that leaves a substantial tax gap - at least £4bn and possibly £6.5bn annually.

Note this is from the Times, not a bastion of leftist thought.

So the question is, what do we do about this? Are you willing to pay higher taxes to pay for the shortfall? Should we lift restrictions on immigration to keep taxes lower?

Rejoining the single market or at least the customs union might help, but the same people who oppose higher taxes also oppose immigration and a closer connection the the EU

"Falling migration numbers could cost the chancellor as much as £7bn in fiscal headroom as he writes his first budget, The Times has been told. Government insiders believe that John Healey, who already faced an uphill battle to balance the books next month, is likely to have an even bigger challenge after immigration significantly undershot projections from the Office for Budget Responsibility (OBR). The Institute for Fiscal Studies think tank estimated last month that the success of Shabana Mahmood’s reforms, which have seen net migration cut to the low hundreds of thousands, could cost Healey some £4bn. Labour sources familiar with the budget process, however, said that the figure was now closer to £6.5bn. The OBR’s migration forecasts have been consistently higher than real numbers in recent years. Treasury officials, who have long expected Mahmood’s reforms to cause a hit to headroom, described the number as “pure speculation” but did not deny that Healey would have to contend with a larger funding gap than expected because of falling migration"

"At the same time, the OBR also observed that a ‘low migration’ scenario would – even after taking account of reduced pressures on public spending – push up borrowing by about £14 billion per year in 2028-29, considerably more than the cost of a 2p cut in National Insurance contributions, and raise the debt to GDP ratio – the government’s key fiscal target – by about 2.5%, or about £75 billion"

"In the short term, the biggest impact will be on social care, already struggling with workforce pressures and years of underfunding. Over the last two years, only a very large influx of migrant workers – 70,000 new starters in the last year – has saved the sector from an even deeper crisis. If the fall in visas issued is sustained, and there is not a large infusion of taxpayer funds, prospects are bleak."

https://www.thetimes.com/uk/politics/article/falling-migration-john-healey-headroom-zsw9rdcnr

https://ukandeu.ac.uk/immigration-is-falling-but-the-economic-cost-may-be-high/

Verifying Device

https://www.thetimes.com/uk/politics/article/falling-migration-john-healey-headroom-zsw9rdcnr

OP posts:
Thread gallery
5
DogsDinner · 30/09/2026 00:19

I agree care workers should be paid a lot more, as I’ve previously said. This would encourage the large number of unemployed we already have in the country to take these jobs.

We shouldn’t be importing anyone who is not a net contributor.

DogsDinner · 30/09/2026 00:08

@Mouldemort

The governments own body, the OBR, has estimated that the Boriswave will cost nearly half a million each in state support by the time they are 80. If 2 million people stay, that is one trillion pounds over the next 40 or 50 years.

Perhaps you could tell us what taxes you would raise to pay this bill?

People on low pay overwhelmingly stay on low pay for most of their lives.

We don’t have to do this to ourselves. We do not owe these people a lifetime of benefits in return for 5 years of work.

It’s completely irrelevant if British citizens cost more than migrants (which I would certainly dispute, for reasons discussed previously in this thread).

We already have too many people chasing a dwindling supply of jobs, with very little idea what the future holds with regards to AI and automation.

Mouldemort · 29/09/2026 23:02

The obvious solution - pay care workers more money does not occur to people because they would rather have a broken care system than nationalise it and spread the cost.

OP posts:
Mouldemort · 29/09/2026 23:00

All people on low paid jobs follow the same profile, which is why saying an immigrant care worker is a net cost when a native worker costs more is ridiculous.

And raising future citizens is a benefit, not a cost,

OP posts:
Mouldemort · 29/09/2026 22:55

@renovationchoas every single adult immigrant who comes here to work costs less than every single British person doing the same job, because we have not paid the costs of education and child rearing. Unless you think low paid jobs are a social ill, and we would be better off without those jobs being done then immigrants pay more tax. And as the report says:

“One of the main reasons non-EEA migrants were consistently found to make a negative net fiscal contribution is that they were more likely to have dependent children, leading to higher spending on education and increased family benefit and tax credit payments. These static estimates do not account for the fact that the fiscal costs of educating migrant children may later be offset when those children reach adulthood, enter the labour market, and pay taxes.”

OP posts:
renovationchoas · 29/09/2026 20:50

@EmeraldRouletteyes, it’s totally ridiculous and very poor value for money. Try pitching this system in Australia and NZ or many EU countries and you’d be absolutely laughed at!

renovationchoas · 29/09/2026 20:48

@nearlylovemyusernamei’d prefer that, mostly because the welfare system contains ridiculous disincentives to work, but I’m also happy to do short term pain for long term gain, so that my kids get a Britain that is less dysfunctional.

nearlylovemyusername · 29/09/2026 20:20

I’d happily pay £1 of tax now to get £100 of benefit in 30 years’ time. Wouldn’t anyone?!

I wouldn't. I pay more than enough taxes, thank you very much. Before I agree to pay a penny more I want to see welfare system reformed. Until then I refuse - I retired much earlier than I originally planned and took all steps possible to protect my DC's inheritance.

EmeraldRoulette · 29/09/2026 20:18

@renovationchoas a lot of of them leave anyway. The Visa isn’t tied to the job or the sector. I agree, it’s perfectly normal for a work Visa to be tied to a job. Lots of countries do this.

renovationchoas · 29/09/2026 20:15

EmeraldRoulette · 29/09/2026 18:24

You might find these two sources useful

This has a graph that shows how things cancel out over time

https://migrationobservatory.ox.ac.uk/resources/briefings/the-fiscal-impact-of-immigration-in-the-uk/

this goes into a lot more detail, but it is ages since I skim read it!

https://ifs.org.uk/publications/migration-and-public-finance-forecast

I think the OBR themselves have admitted that they are not factoring in infrastructure and they are not factoring in what happens with dependents, or what happens with age and further entitlement to benefit for those who choose to stay here.

Yes! That’s exactly the type of information that @Mouldemortdoesn’t seem to have read or considered. Technically, there is a fiscal gap identified in the numbers that the treasury measures because we are charging fewer people immigration fees to come to the U.K. and to work in jobs that are undersubscribed

BUT

1). The counterfactual (of perhaps someone who is underemployed working in that job, or care workers being paid more as a result is not modelled at all, so it looks as if someone coming in to work is +1 Job for the U.K. in the figures

AND

  1. the person who comes in is only counted as a short term benefit and all the costs of providing for that person long term are not measured in official statistics long term at all.

As a result, I think it’s debatable whether even in the short term, less immigration of low paid workers truly costs us money (you can only measure what you count) but what figures there are suggests it is at best a temporal thing and it would be a saving in the long term. I’d happily pay £1 of tax now to get £100 of benefit in 30 years’ time. Wouldn’t anyone?!

renovationchoas · 29/09/2026 20:03

well done @nearlylovemyusernamethat’s the one! And well done @EmeraldRoulettefor finding it too - clearly some level of ineptitude on my part.

@RedTagAlani wasn’t imagining it - that is an acknowledgement by the Migration minister that care workers will likely leave if they get ILR at five years and that is an undesirable outcome.

yes @nearlylovemyusernamei totally agree with you, it’s an obvious path to a better life - I don’t dislike or blame the people who do this in any way at all, but it represents extremely poor value for the British taxpayer and keeps labour costs low in the care sector, which surely lefties should not actually want.

EmeraldRoulette · 29/09/2026 19:56

renovationchoas · 29/09/2026 19:01

@RedTagAlani can’t find it now - it might be because it was in a Live thread rather than an article so it’s not archived in the same way. You’d have to be a bit mad not to think about this issue though. Because if you reverse on the extension to ILR and lots of people leave the care sector in the next couple of years AND claim top ups and benefits, it will be an absolute gift to your opponents….

Edited

Google finds it still in the Time and in the ipaper, but it’s behind a pay wall.

nearlylovemyusername · 29/09/2026 19:38

Andy Burnham proposes national care service — as it happened

“I don't want us to get into that spiral where people move out of the care sector because they've got [indefinite] leave to remain. And this is what we hear from people coming from other countries, that they're here to work, but they then want to go on to other things.”

The Times reports that White was speaking at a Fabian Society fringe event and was discussing proposals that could increase the qualifying period for indefinite leave to remain from five years to 10 or 15 years. It says she warned that allowing around 600,000 social care workers and their dependants to obtain permanent residency could lead some workers to leave the sector.

As I said above - if you live in shitty conditions and want to move to UK it's not a prohibitively high price to pay to spend five year wiping bums, then get ILR and Bob's your uncle. Brits don't want to do hard and poorly paid care work because they have other options, incl life on benefits. The moment immigrant care workers receive ILR they technically become Brits in all entitlements, so they have the same options. Why would they continue wiping bums if they can work in Tesco or develop anxiety and depression and go on benefits? and bring large family here as well.

Importing cheap labour to bridge the gap is exactly the same as government borrowing - you don't fix the issue, you're creating more debt and it's getting more expensive to service.

RedTagAlan · 29/09/2026 19:03

renovationchoas · 29/09/2026 19:01

@RedTagAlani can’t find it now - it might be because it was in a Live thread rather than an article so it’s not archived in the same way. You’d have to be a bit mad not to think about this issue though. Because if you reverse on the extension to ILR and lots of people leave the care sector in the next couple of years AND claim top ups and benefits, it will be an absolute gift to your opponents….

Edited

Cheers. I know what you mean re live feeds. I expect it will be on GB news soon enough.

renovationchoas · 29/09/2026 19:01

@RedTagAlani can’t find it now - it might be because it was in a Live thread rather than an article so it’s not archived in the same way. You’d have to be a bit mad not to think about this issue though. Because if you reverse on the extension to ILR and lots of people leave the care sector in the next couple of years AND claim top ups and benefits, it will be an absolute gift to your opponents….

renovationchoas · 29/09/2026 19:00

And @RedTagAlan@Mouldemorti really don’t understand why you would be even trying to argue anything else from an economic point of view. Shabana Mahmood obviously isn’t a racist - her reforms are not about pacifying racists either. She is obviously doing things to reduce migration because it is obvious to her that the current system is a shit show and is costing the country money - it’s the only reason someone would do it in her position and from her background, because she believes it is the right thing for the country. If you disagree with her, that’s fine, but you do have to ask yourself why someone with all the data would take this “illiberal” (in your view) position as a woman from an ethnic minority background in the Labour Party if she did not genuinely believe it was the right thing to do for the country. It would be far easier for her to stand up and say what her party wants to hear. I tend to believe she has a stronger grasp of the realities than her colleagues, or many left supporters. It’s fine to disagree with her morally, but it is very odd to dispute the financial position!

RedTagAlan · 29/09/2026 18:59

renovationchoas · 29/09/2026 18:31

Hi @RedTagAlanit was reported in the Times in their thread on the Labour Party conference. It is Jo White, the Migration minister. I remember it, because it was a very unusual admission for a Labour MP…..

Thanks. Can't you quote it ? No matter if you can't.

GingerBeverage · 29/09/2026 18:44

How does a pyramid scheme stop being a pyramid scheme?

renovationchoas · 29/09/2026 18:39

(Happens to be the truth though - economically, there is no benefit whatsoever to letting the Boriswave have ILR within 5 years and there probably isn’t for the care sector either, because it only helps people leave it. I personally don’t think it is bonded labour to require people to stay in the sector they got a visa for for more than 5 years, especially if they have brought dependents, or alternatively to say that these people who came to work in care as part of the Boriswave can have ILR but should have no recourse to public funds for longer because they will cost the exchequer more and have already had the very significant benefit of having a route to citizenship. Many countries have tied visas - people can go home instead. I don’t think it is acceptable for the government to sell off a route to citizenship and lifelong access to benefits for multiple people for the price of one person working in a care home. That is an unacceptable use of taxpayers’ money and I would rather use that money to train someone properly in care work and pay them properly.

renovationchoas · 29/09/2026 18:31

Hi @RedTagAlanit was reported in the Times in their thread on the Labour Party conference. It is Jo White, the Migration minister. I remember it, because it was a very unusual admission for a Labour MP…..

RedTagAlan · 29/09/2026 18:25

renovationchoas · 29/09/2026 17:57

Hi @RedTagAlan

the immigration minister was quoted as saying it at the Labour conference this weekend - that she had concerns that actually care workers would not remain in care work. Maybe she has withdrawn it, because I cannot find it on a quick google, but this is what she said. It’s borne out in the numbers - there’s little evidence that importing more workers has filled a skills gap in the long term. I would have no issue with a care worker getting a better, skilled job. I don’t think it’s cricket to work for 5 years, get ILR and then work cash in hand and claim benefits or go and do your 16 hours in Tesco and get topped up. This is what has been happening, unfortunately, because care is badly paid and that option exists for anyone. I don’t think this should continue to happen.

I have not heard it. So we can look together. Who is the UK immigration minister. I get Jo White MP.

Britain's PM Burnham names Jo White migration minister | Financial News (lse.co.uk)

It's Migration minister. Not immigration minister. Semantics sorry, please ignore.
Duties are

Minister of State (Minister for Immigration) - GOV.UK (www.gov.uk)

No results for Jo White news.

Can you remember where you saw this ? GB news, Telegraph, Facebook. I believe what you are saying. Just interested in where you saw it.

But this line., quote " that she had concerns that actually care workers would not remain in care work."

I do struggle to believe that. Because Labour do tend to be quite big on understanding the concept of bonded labour, and being against it, I mean don't they all have to know just a bit about Marx ? Could it be that she said " The data shows on the whole, that migrants move up the employment chain, contributing more to society "

That's the sort of thing a lefty would say.

Do you agree a lefty would say that ?

Minister of State (Minister for Immigration) - GOV.UK

https://www.gov.uk/government/ministers/minister-of-state--121

EmeraldRoulette · 29/09/2026 18:24

You might find these two sources useful

This has a graph that shows how things cancel out over time

https://migrationobservatory.ox.ac.uk/resources/briefings/the-fiscal-impact-of-immigration-in-the-uk/

this goes into a lot more detail, but it is ages since I skim read it!

https://ifs.org.uk/publications/migration-and-public-finance-forecast

I think the OBR themselves have admitted that they are not factoring in infrastructure and they are not factoring in what happens with dependents, or what happens with age and further entitlement to benefit for those who choose to stay here.

The Fiscal Impact of Immigration in the UK - Migration Observatory

This briefing gives an overview of research on the impact of immigration on government finances in the UK and explains the main issues related to estimating the fiscal impact of immigration in the UK.

https://migrationobservatory.ox.ac.uk/resources/briefings/the-fiscal-impact-of-immigration-in-the-uk/

EmeraldRoulette · 29/09/2026 18:17

Mouldemort · 28/09/2026 22:48

There is a whole lot of projection going on here.

I am asking how we should fund the gap the OBR has identified through decreased immigration as a result of government policy.

Oh, I’ve just looked back and saw that you replied to me last night sorry I missed that

why is it projection? The figures aren’t presented in any meaningful way in the terms that I mentioned. So I’m afraid I’m not convinced that there is a gap. Unless you are talking about stopping all immigration. Which is the political position of pretty much no one.

EmeraldRoulette · 29/09/2026 18:13

Mouldemort · 29/09/2026 18:13

Fair enough. I should probably not post on these topics, but Reform seems to have infested these boards in the last few months.

I thought we were talking about taxes…

Mouldemort · 29/09/2026 18:13

EmeraldRoulette · 29/09/2026 18:12

Yes, two I think.

will probably not be on here again for a bit… I get in a really good habit of not being on here and then it gets broken when I’m trying to distract myself from other stuff lol.

currently trying to hide from boring chores….

Edited

Fair enough. I should probably not post on these topics, but Reform seems to have infested these boards in the last few months.

OP posts:
Swipe left for the next trending thread