Net migration rose by 50% to 318,000 last year - with sharp increases from inside and outside the EU.
A total of 641,000 people moved to the UK in 2014, the Office for National Statistics said.
But the PM said he would not "cave in" and abandon his target of reducing net migration below 100,000.
In
a speech at the Home Office, he said the Liberal Democrats had held
back Conservative attempts to reduce numbers during the last parliament
and unveiled a string of measures aimed at curbing illegal working.
Central to these are new plans to seize the wages of illegal workers as proceeds of crime in an attempt to reduce the numbers