Experts issue taxes warning over government immigration policy

• The Institute for Fiscal Studies (IFS) has warned that Labour's crackdown on immigration could force Chancellor Rachel Reeves to raise taxes.
• A sharper-than-expected fall in net migration risks harming economic growth and reducing tax revenues, potentially leading to a difficult Autumn Budget.
• The IFS suggests that if net migration continues to fall below official forecasts, Ms Reeves might be compelled to increase taxes or cut public spending to balance the books.
• New immigrants disproportionately contribute to the tax base and are less likely to utilise health and care services, making their reduced numbers a significant financial concern.
• This warning comes ahead of Ms Reeves' spring statement, where updated forecasts are expected to highlight potential risks to the UK economy and government finances.

IN FULL

Labour’s immigration crackdown could force Reeves to raise taxes, leading economists warn