Counting system is useless, warn peers

THE system for recording how many migrants are in the UK is ‘woefully inadequate’, the Lords said yesterday.

Peers warned in a report that controlling post-Brexit immigration will be a struggle if the Government continues to rely on incomplete information.

The Lords’ economic affairs committee found that current data does not provide an accurate picture of how many migrants enter or leave the country each year, or how long they stay.

Committee chairman Lord Forsyth of Drumlean said: ‘The Government must have reliable statistics on migration before it formulates new policy, otherwise it will be making crucial decisions – of vital importance to the country’s businesses – in the dark. It will take companies time to adapt their business models to be less dependent on EU workers and an imple- mentation period is essential to ensure a smooth transition.’

The committee said government policy of using a strict annual numerical target for immigration risks causing disruption to businesses and the economy. It called for a flexible approach which can adapt to the needs of businesses.

It added that the current data system cannot accurately state how many foreign students remain after their courses end.

Peers called for the Government to use information relating to the economic activity of immigrants – such as paying tax or receiving benefits – to gain a clearer understanding of how long they stay in the UK.

Lord Forsyth said reduced immigration may lead to higher prices. ‘Businesses will have to accept that immigration from the European Union is going to reduce and adapt accordingly,’ he said.

‘Some firms will need to raise wages to attract domestic workers. In other sectors, where migrant workers may not easily be replaced by domestic workers, firms will need to change their business models or increase capital investment in automated processes. All these options may lead to higher prices for consumers.

‘The committee’s 2008 report on immigration warned that the employment of migrant workers could lead to businesses neglecting skills and training for British workers. As the recruitment and retention problem in the nursing sector highlights, these fears have been realised and training for the domestic workforce needs urgently to be given a higher priority.’

A Government spokesman said it was collaborating with the Office for National Statistics to develop a system that provides ‘a richer statistical picture’ of European Union nationals in the UK.