Sure, but local supply of labor was looking even worse than now back then, and cost of labor intensive stuff like daycare, nursing homes/residential care have gone through the roof, still.

Just look at how Brexit alone affected lorry driver wages; if you cut immigration 25 years ago, you'd have seen the same effect across multiple sectors magnifying each other (because labor supply is simply insufficient), and there is a lot of people that would have suffered from higher costs in all those sectors without getting any compensation.

As a "sanity check" for this: If the UK economy did not "need" immigrant labor, you would expect significant unemployment and very high difficulty in finding unskilled labor jobs. Neither is the case.