Cutting migration after Brexit could boost growth by encouraging businesses to innovate, the Office for Budget Responsibility has said.
Robert Chote, chairman of the independent forecaster, told the Treasury select committee there is a possibility lower migration from the EU could "trigger" companies to be "more productive" and deliver an economic uplift.
This is because the associated higher labour costs could "encourage firms to innovate in ways that could increase their underlying productivity," Mr Chote said. "That could have longer-lasting positive effects."
The comment appears in contrast to previous warnings from the economic forecaster that a fall in migration would increase the cost...