SCOTLAND’S economy is not distinct enough to justify the country having its own immigration system, the UK government's independent advisers have said.

In a blow to the SNP, and despite most Scots wanting border control devolved, the Migration Advisory Committee (MAC) said a different migration policy was not merited in Scotland.

The SNP said devolving migration was vital to counter the UK government’s “hostile ‘Little Britain approach” to the issue and to Brexit.

In a long-awaited report on European migration, the MAC said there should be no special preference given to EU workers coming to the UK after Brexit.

It also said there was no evidence that increased EU migration had damaged life in the UK.

It concluded that EU migrants paid more in tax than they took in benefits, contributed more to the NHS workforce than the healthcare they accessed, and had no effect on crime rates.

It called on the UK government to make it easier for high-skilled workers to migrate to the UK, and called for no limit to the number of highly-skilled workers allowed in each year.

This is currently capped at 20,700 from non-EU countries.

Despite the SNP arguing for Holyrood to control migration to offset the impact of Brexit, the MAC report said it was not necessary.

It did not opine on whether migration should be devolved or stay reserved - saying that was a political decision - but it did say there was no underlying economic need for it.

It said: “The Scottish Government take the view that EU migration to Scotland is essential for preventing a return to population decline, to offset the ageing of the existing population and to support remote communities.

“Although lower migration might lead to population decline, this problem is not something that starts at the Scottish border, some Northern English regions have similar prospects.

“Migration is much less effective at dealing with a rising old age dependency ratio than increases in the pension age and immigration may not be an effective strategy for sustaining remote communities unless the reasons for locals leaving are addressed.

“Overall, we were not of the view that Scotland’s economic situation is sufficiently different from that of the rest of the UK to justify a very different migration policy.”

Tory MSP Adam Tomkins said politically-driven SNP demands for devolved migration were “entirely unnecessary”and potentially damaging.

He said: “The report identifies that Scotland’s demographic needs are similar to the rest of the UK and might not be best solved by immigration alone. The fact that a separate Scottish immigration policy may also require a border at Berwick is simply another reason why the SNP must abandon their policy for a separate immigration policy.”

Scottish LibDem leader Willie Rennie added: “Scotland faces the twin challenges of an ageing population and key worker shortages. But these problems are not unique to us.

“Areas of England, Wales and Northern Ireland share our population trends and need for agricultural workers, NHS and social care staff. "This debate needs to be fought UK wide. Cutting ourselves off and looking at this issue in isolation isn’t the smartest way to solve it.”

Labour MP Yvette Cooper, chair of the Commons Home Affairs select committee, said the report was “very puzzling”, with “significant gaps”in its analysis and recommendations.

She said: “The MAC admit they have ignored the crucial relationship between immigration and trade, and explicitly made no recommendation on whether immigration should be part of the [Brexit] negotiations. This report still leaves a serious gap in the evidence base.”

Scottish Chambers of Commerce boss Liz Cameron said employers would welcome an end to the cap on high-skilled migrants, but would dislike the idea of more charges for them.

She said: “It seems counter-intuitive to create further barriers to skilled migration. Any future scheme must provide a streamlined experience for both migrants and firms, while relentlessly seeking to remove bureaucracy and red tape.”

Mike Cherry of the Federation of Small Businesses also said the MAC report was a concern, as some of its plans would add to the costs and administrative burden on employers.

SNP migration minister Ben Macpherson told MSPs the report was deeply disappointing.

He said: “With all of our population increase to come from migration over the next 25 years, migration is absolutely critical to Scotland’s future prosperity.

“However the MAC report does little to consider Scotland’s needs and instead suggests that increasing the pension age would be a preferential approach to managing demographic change – a completely unsustainable position and one we would reject.

“This report will also be deeply disappointing to businesses and employers across Scotland who asked for a simple, low cost approach to migration which took into account the requirements of their sectors.”