UK migration could be negative this year how will that hit the economy?

"The latest official figures, released this week, documenting the number of visa applications to live and work in the UK showed a further slump in people successfully navigating the new rules. Only three years ago, annual net migration soared to almost 1 million. This year the number of people entering the UK could fall to such an extent that it drops below the number moving in the opposite direction, sending the figure for net migration below zero for the first time since 1993."

"While the trend may ease pressure on Keir Starmer from Reform UK, for the chancellor, Rachel Reeves, the trend presents a significant headache, hurting both the businesses that rely on immigrants and a loss of expected tax receipts for the Treasury. Last week, the National Institute of Economic and Social Research, a thinktank, likened the effect to Brexit, saying that if net migration fell to zero, it would knock 3.7% off the UK's annual national income by 2040."

UK government crackdown on immigration has led to steep declines in foreign students and skilled workers entering the country. Universities reliant on international tuition face financial strain, prompting mergers such as Greenwich and Kent. Construction firms, health trusts and care homes report recruitment shortfalls after new visa rules curtailed access to foreign skilled labour. Official visa data show a continued slump in successful applications, and annual net migration has fallen sharply from nearly one million three years ago to a level that could drop net migration below zero for the first time since 1993. Economic forecasters warn that zero net migration would materially reduce national income by mid-century.

Read at www.theguardian.com