Labour’s Migration Crackdown Puts Reeves’ UK Headroom at Risk

The UK government’s move to crack down on migration is set to all but wipe out Chancellor of the Exchequer Rachel Reeves’s budgetary room for maneuver because of a lower tax take, according to analysis from Bloomberg Economics.

Prime Minister Keir Starmer earlier this month outlined plans to reduce net migration to the UK through policies including banning the overseas recruitment of care workers and extending the period after which migrants can claim settled status to 10 years from five. The measure will lower net migration by around 100,000 per year, according to the government’s estimates.