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| European Union migrants add £20bn to the British economy – in just a decade | |
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| Highly skilled migrant workers from the European Union have provided a £20bn boost to Britain’s finances over a decade by paying far more in taxes than they claim in benefits, fresh research discloses today. | Highly skilled migrant workers from the European Union have provided a £20bn boost to Britain’s finances over a decade by paying far more in taxes than they claim in benefits, fresh research discloses today. |
| The figures emerged after the Liberal Democrat minister Norman Baker resigned from Government, accusing his Conservative colleagues of failing to pursue “rational evidence-based policy”. He also told The Independent that the Tories were “rather obsessed” with immigration and protested that the Liberal Democrats were treated as “a cuckoo in the nest” by the Home Secretary, Theresa May. | The figures emerged after the Liberal Democrat minister Norman Baker resigned from Government, accusing his Conservative colleagues of failing to pursue “rational evidence-based policy”. He also told The Independent that the Tories were “rather obsessed” with immigration and protested that the Liberal Democrats were treated as “a cuckoo in the nest” by the Home Secretary, Theresa May. |
| David Cameron, who mocked Mr Baker yesterday over his resignation, has signalled his determination to tighten the rules on EU nationals’ entitlement to work in this country and is due to set out his plans by the end of the year. | David Cameron, who mocked Mr Baker yesterday over his resignation, has signalled his determination to tighten the rules on EU nationals’ entitlement to work in this country and is due to set out his plans by the end of the year. |
| But the analysis by University College London (UCL) suggests that new restrictions would cost the economy dear by deterring highly educated young Europeans from moving temporarily to Britain. | But the analysis by University College London (UCL) suggests that new restrictions would cost the economy dear by deterring highly educated young Europeans from moving temporarily to Britain. |
| It found that EU migrants who arrived since 2000, including citizens from new member states such as Poland, had contributed more than £20bn between 2001 and 2011. Migrant workers from the EU15 countries, which include Germany and France, paid 64 per cent more in tax than they received in benefits. New arrivals from Central and Eastern European “accession” countries contributed 12 per cent more than they took out. | It found that EU migrants who arrived since 2000, including citizens from new member states such as Poland, had contributed more than £20bn between 2001 and 2011. Migrant workers from the EU15 countries, which include Germany and France, paid 64 per cent more in tax than they received in benefits. New arrivals from Central and Eastern European “accession” countries contributed 12 per cent more than they took out. |
| The Home Secretary, Theresa May (Reuters) Immigrants who arrived since 2000 were 43 per cent less likely than UK-born workers to receive state benefits or tax credits and 7 per cent less likely to live in social housing. | The Home Secretary, Theresa May (Reuters) Immigrants who arrived since 2000 were 43 per cent less likely than UK-born workers to receive state benefits or tax credits and 7 per cent less likely to live in social housing. |
| The UCL’s Centre for Research and Analysis of Migration found the EU migrant workers were strikingly better educated than British nationals and brought “human capital” equivalent to spending £6.8bn on education. | The UCL’s Centre for Research and Analysis of Migration found the EU migrant workers were strikingly better educated than British nationals and brought “human capital” equivalent to spending £6.8bn on education. |
| Christian Dustmann, the centre’s director and a co-author of the study, said: “Immigration to the UK since 2000 has been of substantial net fiscal benefit, with immigrants contributing more than they have received in benefits and transfers. This is true for immigrants from Central and Eastern Europe as well as the rest of the EU.” | Christian Dustmann, the centre’s director and a co-author of the study, said: “Immigration to the UK since 2000 has been of substantial net fiscal benefit, with immigrants contributing more than they have received in benefits and transfers. This is true for immigrants from Central and Eastern Europe as well as the rest of the EU.” |
| Jonathan Portes, the director of the National Institute of Economic and Social Research, said: “This confirms once again that the increase in immigration to the UK of the past decade, both from Europe and outside, has benefited UK citizens. Ministers and politicians from all sides ought to look at the evidence before seeking to restrict free movement of workers.” | Jonathan Portes, the director of the National Institute of Economic and Social Research, said: “This confirms once again that the increase in immigration to the UK of the past decade, both from Europe and outside, has benefited UK citizens. Ministers and politicians from all sides ought to look at the evidence before seeking to restrict free movement of workers.” |
| Mr Baker was hit by a Conservative backlash yesterday after he coupled his dramatic resignation – exclusively revealed by The Independent – with a scathing attack on Ms May. | Mr Baker was hit by a Conservative backlash yesterday after he coupled his dramatic resignation – exclusively revealed by The Independent – with a scathing attack on Ms May. |
| Senior Tories reacted with a mixture of ridicule and anger over his move yesterday as tensions within the Coalition boiled over. | Senior Tories reacted with a mixture of ridicule and anger over his move yesterday as tensions within the Coalition boiled over. |
| Tory sources accused him of working only two days a week at the Home Office and of being more interested in spending time in his constituency and presenting a radio programme. Senior Liberal Democrats dismissed the claim as “nonsense” and insisted he had an impressive record of achievement in the department. | Tory sources accused him of working only two days a week at the Home Office and of being more interested in spending time in his constituency and presenting a radio programme. Senior Liberal Democrats dismissed the claim as “nonsense” and insisted he had an impressive record of achievement in the department. |
| Norman Baker arrives at Liberal Democrat headquarters following his resignation (PA) There was also anger in Downing Street that Mr Baker told The Independent of his resignation before informing Mr Cameron. The Prime Minister, campaigning yesterday in the Rochester by-election, said: “We’ll cope without him.” | Norman Baker arrives at Liberal Democrat headquarters following his resignation (PA) There was also anger in Downing Street that Mr Baker told The Independent of his resignation before informing Mr Cameron. The Prime Minister, campaigning yesterday in the Rochester by-election, said: “We’ll cope without him.” |
| He said Ms May was “tough and robust, but that’s why I think she is so good” and added: “Many ministers have worked with her very effectively knowing that she is a strong leader.” | He said Ms May was “tough and robust, but that’s why I think she is so good” and added: “Many ministers have worked with her very effectively knowing that she is a strong leader.” |
| George Osborne mocked the former minister as he referred to a book in which Mr Baker questioned the official account of the government scientist David Kelly’s suicide in 2003. The Chancellor told MPs: “There’s now a vacancy, because [Norman Baker] has resigned, for a conspiracy theorist at the Home Office.” | George Osborne mocked the former minister as he referred to a book in which Mr Baker questioned the official account of the government scientist David Kelly’s suicide in 2003. The Chancellor told MPs: “There’s now a vacancy, because [Norman Baker] has resigned, for a conspiracy theorist at the Home Office.” |
| Damian Green, a Tory former Home Office minister, hit back at Mr Baker’s claims that Ms May had refused to work collegiately with her Liberal Democrat minister. | Damian Green, a Tory former Home Office minister, hit back at Mr Baker’s claims that Ms May had refused to work collegiately with her Liberal Democrat minister. |
| Accusing Mr Baker of focusing on his own agenda, he said: “He was a guitarist who was only interested in his own solos while the rest of the band was trying to play a close-harmony number.” | Accusing Mr Baker of focusing on his own agenda, he said: “He was a guitarist who was only interested in his own solos while the rest of the band was trying to play a close-harmony number.” |
| Mr Green added: “He regarded himself as being on a par with the Home Secretary and asked for papers from other ministers. He wanted to check what everyone else was doing. The world doesn’t work like that.” | Mr Green added: “He regarded himself as being on a par with the Home Secretary and asked for papers from other ministers. He wanted to check what everyone else was doing. The world doesn’t work like that.” |
| Lynne Featherstone replaces Norman Baker at the Home Office (Susannah Ireland) Mr Baker was unrepentant yesterday about his decision and predicted Coalition clashes would increase in the coming months. | Lynne Featherstone replaces Norman Baker at the Home Office (Susannah Ireland) Mr Baker was unrepentant yesterday about his decision and predicted Coalition clashes would increase in the coming months. |
| He said: “I think the Coalition relations are clearly going to be more difficult as we get nearer the election… I think the Coalition works very well. Unfortunately, there are one or two ministers – I am afraid that includes the Home Secretary – who take the view this is not a Coalition Government, but a Conservative Government with Lib Dems in it.” | He said: “I think the Coalition relations are clearly going to be more difficult as we get nearer the election… I think the Coalition works very well. Unfortunately, there are one or two ministers – I am afraid that includes the Home Secretary – who take the view this is not a Coalition Government, but a Conservative Government with Lib Dems in it.” |
| Tim Farron, the Liberal Democrat president, said the Tories “behave like they won the last election”, although he added that the Coalition continued to operate efficiently. | Tim Farron, the Liberal Democrat president, said the Tories “behave like they won the last election”, although he added that the Coalition continued to operate efficiently. |
| Mr Baker was replaced as crime-prevention minister by Lynne Featherstone as Nick Clegg carried out a mini Liberal Democrat reshuffle. | Mr Baker was replaced as crime-prevention minister by Lynne Featherstone as Nick Clegg carried out a mini Liberal Democrat reshuffle. |
| She was a junior Home Office minister between 2010 and 2012 before being switched to the Department for International Development (DfID). Ms Featherstone, the MP for Hornsey and Wood Green, is regarded as being on the left of her party. She was replaced at DfID by Baroness Northover. | She was a junior Home Office minister between 2010 and 2012 before being switched to the Department for International Development (DfID). Ms Featherstone, the MP for Hornsey and Wood Green, is regarded as being on the left of her party. She was replaced at DfID by Baroness Northover. |