Our research shows that immigrants make an important fiscal contribution to the UK and pay more than their share. They are not a drain on the UK's resources
IPPR director Nick Pearce
As the election campaign continues to focus on immigration, a new report has found that on average migrants pay more tax than UK nationals.
The left-leaning but independent Institute for Public Policy Research think tank found on Wednesday that workers born outside of Britain put more in to the public purse per head of population than those born in the country.
The calculations, using Treasury data and the Labour Force Survey, found that although the migrant workforce makes up 8.7 per cent of the population, it contributes 10.2 per cent of all the income tax collected. The study predicts that this proportion is likely to grow in the future.
They seek to dismiss election claims that immigrants are a burden on the economy, taking up resources such as housing, health services and benefits.
"Our research shows that immigrants make an important fiscal contribution to the UK and pay more than their share. They are not a drain on the UK's resources," IPPR director Nick Pearce said.
According to the analysis, migrants earned around 15 per cent more than other workers, paying an average more £350 more in tax in 2003/04.
Immigrants generated £7,203 in revenue compared with £6,861 by non-migrant workers.
Surplus
However, the IPPR did seek to clarify government claims that immigrants contribute £2.5bn more to the exchequer than they receive in benefits.
The report stressed that this figure referred to a year when the public finances were in surplus.
In a year when the government's accounts were in deficit migrants "cost" the country an average £7,277 in taxpayer spending last year, compared with the £7,753 spent on each British-born member of the public.
"So the nation as a whole, and not just immigrants, were paying more in taxes than the cost of benefits and services that they were using," Pearce said.
"It is more helpful to assess the relative contribution of immigrants to the public finances."
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