Sharper than expected fall in net migration ‘will add £3bn to UK’s borrowing’
The economic cost of the UK’s sharp fall in net migration explained
- The UK's plummeting net migration numbers are projected to add billions to the nation’s borrowing, a leading think tank has warned.
- The Resolution Foundation indicated that the sharp fall in net migration, largely due to government crackdowns, could increase government borrowing by around £3 billion.
- Lower migration, particularly of working-age individuals, is expected to reduce tax intake without necessarily cutting public service costs, impacting the exchequer.
- Official figures revealed net migration dropped significantly from a peak of 944,000 in 2023 to 204,000 in the 12 months to June, marking the lowest annual figure since 2021.
- These warnings come ahead of Chancellor Rachel Reeves' spring statement, amidst broader concerns about slow economic growth and rising unemployment.
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