Cameron's referendum gun is firing blanks

The Prime Minister cannot negotiate effectively in Brussels and give his MPs what they want at the same time

David Cameron’s position on whether there should be a referendum on Britain’s membership of the European Union is an entirely rational one. That isn’t to say he is doing the right things at European summits or has the right policy. It is simply an observation about the tricky position he is in, having to negotiate simultaneously in Brussels with fellow heads of government and in Westminster with his own party.

The two sets of demands are incompatible. In Brussels, the Prime Minister wants to influence the evolution of European institutions as they adapt to the single currency crisis. He needs to preserve British influence without signing up to any more political or economic integration. That balancing act gets harder when his continental counterparts think the UK is determined to sabotage their efforts and is, in any case, striding towards the exit. That is precisely the message that would be transmitted by a premature commitment to a referendum regardless of what comes out of current negotiations.

Tory Eurosceptics, meanwhile, argue that the prospect of a referendum will focus the minds of the PM and the rest of the EU, making it clear that the final deal has to be a good one for Britain ...or else. That view rests on the uncertain premise that other European countries desperately want to avoid a British exit. Diplomatic patience with the UK is running thin. Besides, seasoned observers of the Tory right (at home and abroad) recognise that the end game for many MPs is exit no matter what concessions are wrung from Brussels. Why should Angela Merkel or François Hollande offer David Cameron favours on the basis that it might help him control his party and buy a renewed mandate of the UK’s EU membership when they know perfectly well that it won’t?

But Cameron can’t simply tell his party to shut up and wait and see what he has negotiated before demanding a referendum. Tory MPs don’t trust his pledges on Europe and want some indication that the plebiscite they crave will materialise. So he has to indicate that he recognises the need for a vote without actually stating that there will definitely be one. Britain’s membership of the EU really ought to be ratified by a national vote but there isn’t much point asking the question until the terms of that membership are settled and they are now, thanks to uncertainty over the single currency, in flux. That is Cameron’s position and, as I say, it is reasonable given the political constraints he is under.

The most aggressively eurosceptic section of the Tory party, however, is minded to be unreasonable. I don’t mean that in the pejorative sense of ‘irrational’. I mean their patience has run out and they don’t want excuses. They feel Cameron has been given the benefit of the doubt on Europe in the past and has been flaky on the subject. (In fact he has been extraordinarily accommodating.) His promises to deliver something – maybe - at an unspecified point in the future are worthless currency in the Conservative ranks.

There is no great diplomatic advantage in sounding off about a referendum; if anything it weakens Britain’s negotiating position. Nor does the vague promise of a referndum do very much for non-aligned voters with other things on their minds. So the only point of even talking about a vote is as a gesture to the Ukip-leaning tendency and the only gesture that will satisfy them – a clear irreversible commitment to an in/out question - is one the Prime Minister cannot make. It is, in political terms, as if Cameron has pulled out a gun to look all macho eurosceptic when everyone knows he is firing blanks.

David Cameron "can’t simply tell his party to shut up and wait and see". Photograph: Getty Images.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

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The Brexit effect: The fall in EU migration spells trouble for the UK

The 84,000 fall in net migration to 248,000 will harm an economy that is dependent on immigration.

The UK may not have left the EU yet but Europeans are already leaving it. New figures from the ONS show that 117,000 EU citizens emigrated in 2016 (up 31,000 from 2015) - the highest level for six years. The exodus was most marked among eastern Europeans, with a fall in immigration from the EU8 countries to 48,000 (down 25,000) and a rise in emigration to 43,000 (up 16,000).

As a result, net migration has fallen to 248,000 (down 84,000), the lowest level since 2014. That's still nearly more than double the Conservatives' target of "tens of thousands a year" (reaffirmed in their election manifesto) but the trend is unmistakable. The number of international students, who Theresa May has refused to exclude from the target (despite cabinet pleas), fell by 32,000 to 136,000. And all this before the government has imposed new controls on free movement.

The causes of the UK's unattractiveness are not hard to discern. The pound’s depreciation (which makes British wages less competitive), the spectre of Brexit (May has refused to guarantee EU citizens the right to remain) and a rise in hate crimes and xenophobia are likely to be the main deterrents. Ministers may publicly welcome the figures but many privately acknowledge that they come at a price. The OBR recently forecast that lower migration would cost £6bn a year by 2020-21. As well as reflecting weaker growth, reduced immigration is likely to reinforce it. Migrants pay far more in tax than they claim in benefits, with a net contribution of £7bn a year. An OBR study found that with zero net migration, public sector debt would rise to 145 per cent of GDP by 2062-63, while with high net migration it would fall to 73 per cent.

Brexit has in fact forced ministers to increasingly acknowledge an uncomfortable truth: Britain needs immigrants. Those who boasted during the referendum of their desire to reduce the number of newcomers have been forced to qualify their remarks. Brexit secretary David Davis, for instance, recently conceded that immigration woud not invariably fall after the UK leaves the EU. "I cannot imagine that the policy will be anything other than that which is in the national interest, which means that from time to time we’ll need more, from time to time we’ll need less migrants."

Though Davis insisted that the government would eventually meet its "tens of thousands" target (a level not seen since 1997), he added: "The simple truth is that we have to manage this problem. You’ve got industry dependent on migrants. You’ve got social welfare, the national health service. You have to make sure they continue to work."

As my colleague Julia Rampen has charted, Davis's colleagues have inserted similar caveats. Andrea Leadsom, the Environment Secretary, who warned during the referendum that EU immigration could “overwhelm” Britain, has told farmers that she recognises “how important seasonal labour from the EU is to the everyday running of your businesses”. Others, such as the Health Secretary, Jeremy Hunt, the Business Secretary, Greg Clark, and the Communities Secretary, Sajid Javid, have issued similar guarantees to employers. Brexit is fuelling immigration nimbyism: “Fewer migrants, please, but not in my sector.”

Alongside the new immigration figures, GDP growth in the first quarter of 2017 was revised down to 0.2 per cent - the weakest performance since Q4 2012. In recent history, there has only been one reliable means of reducing net migration: a recession. Newcomers from the EU halved after the 2008 crash. Should the UK suffer the downturn that historic trends predict, it will need immigrants more than ever. Both the government and voters may only miss migrants when they're gone.

George Eaton is political editor of the New Statesman.

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