The Government will not be able to control immigration after Brexit if it does not take steps to tackle the “woefully inadequate” information it currently relies upon, according to a new report from from peers.
The Lords’ Economic Affairs Committee said current data does not give an accurate picture on the flow of migrants in and out of the country each year.
It warns that immigration policy will be made “in the dark” if it does not instigate fundamental change in the way it produces the numbers.
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 implementation period is essential to ensure a smooth transition.”
Lord Forsyth also said that reduced immigration could lead to higher prices in several sectors of the economy.
He said: “Businesses will have to accept that immigration from the European Union is going to reduce and adapt accordingly. 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.”
Peers said that the current data system cannot accurately state how many foreign students remain after their courses end.
The committee said the Government needs to address this problem, and then no longer include students in any short-term net migration figures for public policy purposes.
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 migrants stay in the UK.
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 that can adapt to the needs of businesses and the labour market, in particular, during any implementation period.
