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Immigration has had a huge impact on the UK’s economy. Migrant labour from the Commonwealth helped reconstruct the country after World War Two and maintain the transport and health services. Bus conductors and drivers and hospital nurses and doctors from many parts of the world were crucial to these services, and remain so today. Migrant factory workers were essential to many businesses in the 1960s and 1970s. The catering and hotel businesses - a major earner for the British economy - continue to be heavily staffed by immigrant workers.

Attitudes about modern immigration

The topic of immigration has always divided opinion, especially when it comes to the economy. Supporters of immigration argue that it creates more jobs, helps boost the economy and keeps inflation down. Opponents argue that immigration causes unemployment, reduces wages overall and puts too much pressure on public services such as health and education. Recent studies, however, are inconclusive:

• 2007 – a government study reported some social problems caused by immigration
• 2007 – another government report found that the UK economy had gained £6 billion due to immigration
• 2008 – a House of Lords report found no evidence of benefit to the UK from immigration
• 2009 – a University College London study concluded that immigrants made a big contribution to the economy as they paid more tax than they received in benefits
• 2012 – a report by the National Institute of Economic and Social Research reported that immigration and unemployment were not linked
• 2015 – a report by the Bank of England said that immigration was holding down wages

Supporters of the European Union (EU) free movement of people argue that the economic boom of the early 2000s was partly thanks to migrant workers taking lower paid jobs in the service sector and paying taxes to support care for an ageing population. Opponents argue that, especially since the 2008 financial market crash, too many people are coming into the UK and our housing stock, schools and hospitals cannot cope. All sides of the argument, including those who argue for much stricter immigration controls, agree that some immigration is needed to keep the economy going.