The Office for Budget Responsibility said that spending on the state pension, social care and healthcare will rise from 14 per cent of Britain's GDP to almost a fifth.
The report found that allowing more than 140,000 immigrants into Britain a year, equivalent to 6million people, would help increase the overall number of people who are in work and improve public finances.
Its analysis suggests that Britain's borrowing as a propotion of GDP would rise to 99 per cent if there is a steady flow of immigrants. If there was a complete ban on immigrants, borrowing would rise to 174 per cent of GDP.
"There is clear evidence that, since migrants tend to be more concentrated in the working-age group relatively to the rest of the population, immigration has a positive effect on the public sector’s debt dynamics."
The OBR found that Britain's ageing population and strained healthcare system means that there will need to be an extra £19billion of spending cuts or tax rises after 2019.
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