Objectives and key issues
4. This report addresses key questions about
the economic impacts of immigration on the resident population
in the UK. To be as transparent as possible in what has often
been a fairly confused debate, it is important to clarify at the
outset some basic definitions and the scope of the inquiry. For
the purpose of this report, "economic impacts" are defined
broadly to include impacts on public services and economic consequences
of rising population density, but the report does not discuss
the impacts of immigration on cultural diversity and social cohesion[7]
(although there may be associated economic impacts). "Immigrants"
are defined as foreign-born persons or, where data for foreign
born are not available, as foreign nationals (that is, persons
without British citizenship). The term "resident population"
is meant to indicate a focus (although not an exclusive one) on
the impacts of immigration on the pre-existing population (that
is, on the population residing in the UK before the arrival of
new immigrants) rather than on immigrants or their countries of
origin. Finally, the report focuses on the impacts of immigration
for the UK as a whole, although some regional differences—important
both in terms of the number and impacts of immigrants—are
highlighted.
5. The choice of questions addressed in this
report reflects the key themes in Britain's growing immigration
debate as well as the arguments made by Government over the past
ten years:
- What do we know about the scale, characteristics
and demographic impacts of recent immigration? (chapter 2)
- How does immigration impact on the incomes and
living standards of the resident population? (chapter 3)
- Is there a need for immigrant workers to fill
labour and skills shortages? (chapter 4)
- Does immigration generate fiscal benefits for
the UK? (chapter 5)
- What are the economic impacts of rising population
density? (chapter 6)
- What conclusions do we draw for the UK's immigration
policies? (chapter 7)
6. The discussion of these issues is based on
a critical review of existing theories and evidence rather than
on new data and research. The inquiry has generated more than
70 pieces of written evidence, and another 35 pieces of oral evidence,
from a wide range of people and institutions in and outside the
UK, including academics, think tanks, employers associations,
trades unions, NGOs, local government and government departments
across the UK.[8]
7. A recurring theme of our inquiry, highlighted
at various points in this report, is the serious inadequacy of
the existing data on immigration, emigration and the stock of
immigrants in the UK. The lack of reliable and more complete data
makes it very difficult to assess the scale, characteristics and
impacts of immigration.
8. While our inquiry has assessed the overall
economic impact of immigration, it is important to bear in mind
that as a member of the European Union, the UK cannot regulate
the number or selection of nationals of the European Economic
Area (EEA)[9] entering
the country. Most EEA nationals also have the automatic right
to work in the UK. Asylum seekers have rights to humanitarian
protection in the UK by virtue of international human rights treaties.
This leaves as the major area of discretionary policy the entry
of non-EEA nationals other than asylum seekers. When such nationals
come to reside here, they have the right to bring their families
with them. We do not discuss what these rights should be, but
when considering the entry of foreign workers allowance must also
be made for the fact that many of them will bring families with
them. The economic impact on the resident population should be
a central criterion for regulating the immigration and employment
of these non-EEA, non-asylum seekers wishing to come here.
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