This concept of an Immigration Premium was developed after watching Nick Clegg struggle to counter Nigel Farage on the subject of immigration in the European election debates. The UKIP leader is correctly able to state that we have an open door policy to European Immigration and hundreds of thousands of people arrive year after year, putting immense strains on housing, education, healthcare and other infrastructure elements.
The Immigration Premium turns this problem on its head. New immigrants (identifiable by NI number) have high levels of employment and through sheer weight of numbers make a major contribution to the exchequer both through direct taxes and indirect spending. In fact, immigration is a major factor in the economy’s return to growth. The Immigration Premium identifies additional tax revenues generated by immigration and directs additional funds to the geographic areas and services most directly affected by sudden influxes of large numbers of new people.
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