Despite the increases in the regulatory and tax burden, the British economy is expected to maintain its growth rate. Ernst and Young argue that this is partially due to the influx of immigration from Eastern Europe.
The Item Club, the only forecaster to use the
Treasury's economic model, believes interest rates would be 0.5
percentage points higher and gross domestic product 0.2 per cent lower
were it not for an estimated 300,000 new workers from Eastern Europe
alone.
Professor Peter Spencer, the chief economic advisor to the Item Club, said: "The steady flow from the most recent accession countries to the UK has proved remarkably positive for the economy… we are looking at a very positive cost-benefit ratio."
The positive benefits of immigration from Eastern Europe is not limited to the South-East. they have settled in all regions of the Kingdom.
The government cannot rely upon liberal immigration policies to offset the problems associated with the growth of the state. This is a short-term measure that postpones inevitable reforms. With the rise of the BNP, one also notes that the 'decay of the state' is finding the scapegoats of change in the immigrant communities.