Immigration cuts will 'increase tax'

A reduction in immigration levels may make it necessary to increase taxes, it has been claimed.

Britain's Institute for Public Policy Research (IPPR), an organisation established in 1988, believes that should a tighter immigration policy be implemented, it may result in a public finance shortfall by 2036 that equates to an increase in income tax of up to a maximum of 9p.

The IPPR's comments were made by Dr Dhananjayan Sriskandarajah to the House of Lords select committee on economic affairs, reports the Daily Mail.

"Our analysis of what this might mean using our tax/benefit modelling shows that a zero net migration policy is likely to result in significant tax increases compared to low or medium projections," said Dr Sriskandarajah.

Presently, the committee is holding an enquiry on immigration.

Under new immigration proposals, the UK would establish a points system for non-EU entrants.