Does the report concentrate only on direct economic comparisons? It seems to.
I can't see how it treats the results of population increase as a result of inwards migration; an increase in demand for housing, for example. Basic economics suggest that the result of that will be an increase in house prices. Is that ignored, or is it treated as part of the net economic contribution? If the latter is the case, an increase in house prices would not be universally seen as a positive overall.
Of course, by the same token if those moving here include a larger than average number of skilled construction workers the wages (market price) in construction will reduce, making houses cheaper to build.
One of the issues with housing is the number of people who now live in a house with just one or two people, a lot of those is down to the lack of children based on the size of the population, however another factor is the number of over 65's (which is growing at a much faster rate than any other age group).
If the population was stable at 60 million and you shift from 2.9 people per house to 2.4 people per house you need an extra 4.3 million homes (those household sizes are those for 1970's and the 2020's, so show some of the issue we have to deal with on top of the fact that the population has increased).
But that doesn't benefit the local population if the economy is simply growing in proportion to the number of people living here. What really matters is GDP per capita - and there's no reason to believe that went up as a result of FOM.
One issue with a per capita value is that it counts everyone equally, those on state pensions and those earning £50,000. Arguably there should be a value for working age population, as otherwise you could have GDP per capita taking sharply but actually that almost entirely be down to having a falling working age population.
Again, that would make no difference to GDP per capita (or to tax take per capita)
See above
But presumably, when people go abroad to retire, we still have to pay their pensions, so it's not significantly reducing the numbers of retired people we need to pay for. Plus it means that those pensions will be cycled into other countries' economies, not the UK economy (Worth pointing out since you've mentioned immigrants spending money in the UK - it works both ways!)
Indeed it works both ways when it comes to spending, however someone on a low(ish) pension it's going to contribute fast less than someone on a wage, as generally few are paid more by their pension than their job.
Why do you think housing costs have risen so much? Obviously there are many factors, but you can't ignore the impact of population increase caused by FOM meaning there are something like, maybe 2 million additional people in the UK who need somewhere to live.
See the point above about the 4.7 million extra homes required just by the population staying at 60 million between 1970 and 2020.
Obviously the population over that time has changed from 56 million to 67 million which actually has made it so much worse, as that's a demand for housing rising from 19.3 million homes to 28 million homes. Currently there's 26.4 million homes (which would imply a shortfall of 1.6 million).
Whilst FOM has potentially added 2 million people, assuming they also occupy housing at a rate of 2.4 people per house, they would need about half of that shortfall (0.85 million), so there would still be a significant shortfall.
With a falling working age population it's likely that the numbers per house may well fall a bit more (especially given we're going to see the 65+ age group rising, with significant growth in those aged over 80, and they tend to be in households of 2 or less - mostly due to not having many children living at home).
If it were to (say) fall to 2.35 people per house at 64 million we'd need 550,000 extra homes. As you can see some fairly small changes in home occupancy rates could nearly wipe out 3 years of the house building target of 200,000 homes per year (not that the target was met, or even nearly met, for most of the last twenty years).
Conversely if we'd managed to maintain home occupancy at 2.5 per dwelling we could have had an extra 10% (200,000) from FOM and it not required more houses than we currently need.
As others have highlighted it's unclear how FOM has aided in the building of new homes (it was certainly the case that you would have been paying a lot for any sort of trade around the turn of the millennium and that reduced as the Eastern European countries were allowed in), so it's not always clear cut.
If we continue to see falling household sizes then ending FOM isn't going to stop there being a significant (and potentially growing) shortfall in the number of houses needed.
As such, whilst FOM is a factor, it's only one of many factors.
However I would add that saying that we need more working aged people doesn't mean that:
- it should be unlimited (there's a lot of space between no immigration and unlimited immigration)
- that FOM is what we should go back to having (although it's easy to define, so it's easier to explain to people)