[quote lorking]@BambinaJAS but the questions is will the immigrants want to come here when other countries will want them too. As you say why would the high tax, low growth model be attractive.
I'd encourage any young person here to move abroad if they can - obviously this will make things worse. [/quote]
The main advantage the UK has is language.
English is spoken pretty much everywhere in the world, so most people have been exposed to it one way or another.
Governments change. If the next set of folks make it easier for immigrants to come (even seasonal by not making visas extortionately expensive) you will see a benefit.
Those immigrants do jobs UK natives do not want to do. They help grow the economy, which increases the tax base revenue wise and improves the workers:retired folks ratio.
I do agree that at the same time that is done, serious investment needs to be directed to younger folks (education, family benefits, skills development) in order halt the potential brain drain.
The tax system also has to shift so that we do not give so many breaks to capital. Cap gains should be taxed as income. There is no excuse not to do this.
Thats kind of how I would start approaching the problem.