1 Presentation to The Bruges Group 20 May 2009

2 Large-scale immigration is a new phenomenon Total Net migration into England ‘000’s Source: ONS – Parliamentary written answer WA and ONS International Migration Statistics November 2007

3 …and is a matter of public concern Source: MORI Political Monitor: What would you say is the most important issue facing Britain today (spontaneous)? What do you see as other important issues facing Britain today (spontaneous)? Percentage saying Race relations/immigrants/immigration. (Figures mainly at April except for 74,77, 78 and 82 and Mar 05 and Jan 08)

4 The impact of immigration on the population of England Source: Natural Change, High migration and Principal Projection from GAD (2006-based). Balanced migration projection derived from GAD principal and low migration projections

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6 Household formation reasons 39% 19% 17% 25% Net migration is the single largest reason for additional household formation. Source : Estimated from GAD 2006-based population projections and DCLG New Projections of households for England and the Regions to 2026.

7 This creates no significant economic benefit … The House of Lords Select Committee on Economic Affairs recent enquiry concluded: “We have found no evidence for the argument, made by the Government, business and many others, that net immigration - immigration minus emigration - generates significant economic benefits for the existing UK population.” The Government’s own evidence was that the annual benefit was 0.15% of GDP or 62p per head per week. The Select Committee recommended that the Government should have “an explicit and reasoned indicative target range for net immigration and adjust its immigration policies in line with that broad objective."

8 Immigrants on work permits, not asylum seekers, are now the main source Immigrants by category Sources: Work Permits: Migration Advisory Committee, skilled, shortages, sensible : Table 2.3 Work Permits plus First Permissions plus an estimate of 50% for dependants. Asylum: Hansard 12 November 2008, Column 1214WA Spouses: Control of Immigration: Statistical Summary ; Table 2.6 (EEA Spouses excluded)

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10 …while the number of immigrants from new EU states is expected to decline Incomes will eventually rise in home economies as they integrate with EU 15, decreasing migration –Similar trends seen when Spain, Portugal, Greece joined EC Demographics –In the two largest countries, Poland and Romania, the number of people reaching 18 will fall by 30% in the next ten years. Opening up of all EU labour markets by May 2011 –At present labour markets in Germany, Austria and France are effectively closed. In January 2014 Romanians and Bulgarians will also have free access to all EU member states. Exchange Rate –Polish workers now get 40% less in their own currency for every pound they earn in Britain compared with 2004

11 Balanced migration in a nutshell Balanced migration would seek to bring the numbers of immigrants into line with the number of emigrants. The main change would be to control the number of non- EU citizens who are given the right to settle permanently in the UK.

12 The impact of balanced migration Economy –No change to current arrangements for EU. Nor for non-EU workers who wish to work, not settle here –Employers will continue to be able to hire non-EU foreigners to work for them for up to 4 years, so long as the employee holds a work permit Housing –New household formation would be reduced by about 40% Population –Stabilise the population of the UK at about 65 million by mid century, otherwise it would approach 80 million on government’s principal projection

13 Benefits Balances the need for a competitive economy and the costs of a rapidly growing population Provides, as the House of Commons Economics Committee recommended, a "reasoned target range for net immigration" to which immigration policies could be adjusted Reduces pressure on the environment, schools, transport and the NHS Encourages British industry and commerce to train British workers Improves the prospects for integrating newcomers to our society Reduces the drain of talented people from third world countries who need their skills more than we do.

14 Spouses and fiancé(e)s (currently 62,000)50,000 Other dependants10,000 Settlement quota for those who came with a work permit (that is non-EU citizens) 20,000 Net migration from EU 15 (the recent average is 23,000)25,000 Net migration from new EU members 30, ,000 Net British emigration (latest year 2006) 125, Total net migration 10,000 An outline of the numbers