Record-high levels of immigration have failed to boost the economy while making the housing crisis worse, a leading think tank has warned.

In a report co-authored by former immigration minister Robert Jenrick, the Centre for Policy Studies (CPS) urged the Government to introduce caps on legal immigration to stop a drain on British infrastructure and public services that is not offset by economic growth.

In particular, high levels of immigration are “significantly exacerbating the housing crisis”, it said.

The report, which is jointly authored with former health minister Neil O’Brien, also suggested the Home Office should be broken up to create a new department to control immigration.

It came after data published showed British consumers are suffering the longest drop in living standards in the G7 as the economy fails to keep up.

The Organisation for Economic Cooperation and Development (OECD) said GDP per person fell for four quarters in a row across 2023 in the UK and has been at 0pc or less since spring 2022.