Immigration is back

Underneath the tactical manoeuvring, the differences in this area between Labour and the Tories are

Despite voter concern about immigration falling to its lowest level in nine years, immigration is back as both political box office and political football.

The escalating problem of irregular migration from the Arab spring is reopening old arguments over "burden-sharing" in Europe, which Nick Clegg was dragged into on Tuesday. Back home David Cameron, having gone quiet on immigration over the winter, returned to the issue aggressively during the local elections.

Conservatives have often banged the immigration drum during a campaign, only to put it away once its job is done. But this time Cameron is likely to keep up the focus, taking a risk on a bit more Lib Dem unhappiness, in order to enjoy an ongoing political dividend.

The manner in which sensitive proposals on restricting family and marriage visas were trailed on Monday looks like an early sign of the tactics urged on Cameron by Tim Montgomerie (following Tony Blair and Margaret Thatcher) of picking "big, defining fights on popular projects" such as immigration as the best way of avoiding his agenda being defined entirely by the spending cuts.

It also offers an ideal sop to the Conservative right, along with continuing to yoke the immigration cap to welfare reform – two of the Tory right's favourite coalition policies.

Labour, meanwhile, knows it can't avoid immigration for ever, and a bolder approach now could begin to detoxify the issue for it, tackling continued resentment among southern voters over Labour's record. Ed Miliband's wider strategy on the "squeezed middle" and the Blue Labour agenda provide him with new ways of talking about immigration that are more constructive than just saying, "Sorry, we let too many in."

Underneath the tactical manoeuvring, there is actually less polarisation in the two main parties' broad strategy on immigration than in previous years. In the four decades to the 2005 election, Labour was seen as basically pro-immigration, Conservatives basically anti. Since then, both have tried to shed those old images, and are competing to be identified with the centre ground: roughly, pro-immigration-but-less-of-it, a more balanced approach that is now routinely applied to the social and cultural as well as the economic aspects of immigration. Ed Miliband is continuing on these lines, and it must remain Cameron's preferred strategy, too – as well as his best chance of preserving coalition unity.

There are three main battlegrounds in the campaign to win the centre: overall numbers, the economy and culture. On the numbers, both parties have flagship policies with the same basic objective: more quality, less quantity. Labour's version, the points-based system, is more realistic about the nature of migration flows, the workings of the immigration system and the needs of the economy. In contrast, the Tories' cap is crude but easy to explain, and on an issue where trust has disappeared, this has so far proved decisive.

On the economy, Labour needs to win the argument again about immigration's contribution to overall growth and extend that argument to reducing the deficit. The pro-immigration line on the economy had a damaging air of complacency in recent years, but the evidence remains basically sound. The more radical debate is over the role of immigration in the complex dynamic at the lower end of the labour market.

Cameron's argument here is that if we reduce immigration while at the same time making it harder to live on benefits, this will shift large numbers of people from welfare to work. Miliband's argument, though less clearly put, seems to be that if wages and conditions improve, the result will be simultaneously to reduce the demand for low-paid migrants (at present the only ones willing to do some of these jobs) and to shift people from welfare to work, but by making work more attractive, rather than making living on benefits harder. Both arguments present low-skill immigration as a symptom of our real problems – welfare for the Tories, wage stagnation for Labour – rather than the cause.

On the final battleground of culture, the target is the voters identified in the recent Fear and Hope report as neither relaxed about immigration nor implacably opposed to it. For Miliband, the emergence of Blue Labour will help him keep his party's debate focused on this centre ground.

The Conservatives have a headstart here, but this could be undermined by two factors pushing them towards a more polarised position: the neocon approach of Michael Gove and others – evident in the more confrontational passages of Cameron's Munich speech – and the desire to perpetuate anger against Labour by talking up the problems of integration, rather than doing anything to solve them.

On all three battlegrounds – numbers, the economy and culture – narrative will be more important than policy or statistics. The Tories start with a clear advantage, but their narrative may become increasingly frayed by coalition dynamics, the realities of government, and an inability to control their instincts tugging them off to the right. Labour meanwhile has the makings of an alternative story, but it is a long way from being fully fleshed out.

All in all, the debate might be more interesting over the coming year than the cynics think.

Matt Cavanagh is associate director at IPPR.

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Brexit will hike energy prices - progressive campaigners should seize the opportunity

Winter is Coming. 

Friday 24th June 2016 was a beautiful day. Blue sky and highs of 22 degrees greeted Londoners as they awoke to the news that Britain had voted to leave the EU.  

Yet the sunny weather was at odds with the mood of the capital, which was largely in favour of Remain. And even more so with the prospect of an expensive, uncertain and potentially dirty energy future. 

For not only are prominent members of the Leave leadership well known climate sceptics - with Boris Johnson playing down human impact upon the weather, Nigel Farage admitting he doesn’t “have a clue” about global warming, and Owen Paterson advocating scrapping the Climate Change Act altogether - but Brexit looks set to harm more than just our plans to reduce emissions.

Far from delivering the Leave campaign’s promise of a cheaper and more secure energy supply, it is likely that the referendum’s outcome will cause bills to rise and investment in new infrastructure to delay -  regardless of whether or not we opt to stay within Europe’s internal energy market.

Here’s why: 

1. Rising cost of imports

With the UK importing around 50% of our gas supply, any fall in the value of sterling are likely to push up the wholesale price of fuel and drive up charges - offsetting Boris Johnson’s promise to remove VAT on energy bills.

2. Less funding for energy development

Pulling out of the EU will also require us to give up valuable funding. According to a Chatham House report, not only was the UK set to receive €1.9bn for climate change adaptation and risk prevention, but €1.6bn had also been earmarked to support the transition to a low carbon economy.

3.  Investment uncertainty & capital flight

EU countries currently account for over half of all foreign direct investment in UK energy infrastructure. And while the chairman of EDF energy, the French state giant that is building the planned nuclear plant at Hinkley Point, has said Brexit would have “no impact” on the project’s future, Angus Brendan MacNeil, chair of the energy and climate select committee, believes last week’s vote undermines all such certainty; “anything could happen”, he says.

4. Compromised security

According to a report by the Institute for European Environmental Policy (the IEEP), an independent UK stands less chance of securing favourable bilateral deals with non-EU countries. A situation that carries particular weight with regard to Russia, from whom the UK receives 16% of its energy imports.

5. A divided energy supply

Brexiteers have argued that leaving the EU will strengthen our indigenous energy sources. And is a belief supported by some industry officials: “leaving the EU could ultimately signal a more prosperous future for the UK North Sea”, said Peter Searle of Airswift, the global energy workforce provider, last Friday.

However, not only is North Sea oil and gas already a mature energy arena, but the renewed prospect of Scottish independence could yet throw the above optimism into free fall, with Scotland expected to secure the lion’s share of UK offshore reserves. On top of this, the prospect for protecting the UK’s nascent renewable industry is also looking rocky. “Dreadful” was the word Natalie Bennett used to describe the Conservative’s current record on green policy, while a special government audit committee agreed that UK environment policy was likely to be better off within the EU than without.

The Brexiteer’s promise to deliver, in Andrea Leadsom’s words, the “freedom to keep bills down”, thus looks likely to inflict financial pain on those least able to pay. And consumers could start to feel the effects by the Autumn, when the cold weather closes in and the Conservatives, perhaps appropriately, plan to begin Brexit negotiations in earnest.

Those pressing for full withdrawal from EU ties and trade, may write off price hikes as short term pain for long term gain. While those wishing to protect our place within EU markets may seize on them, as they did during referendum campaign, as an argument to maintain the status quo. Conservative secretary of state for energy and climate change, Amber Rudd, has already warned that leaving the internal energy market could cause energy costs “to rocket by at least half a billion pounds a year”.

But progressive forces might be able to use arguments on energy to do even more than this - to set out the case for an approach to energy policy in which economics is not automatically set against ideals.

Technological innovation could help. HSBC has predicted that plans for additional interconnectors to the continent and Ireland could lower the wholesale market price for baseload electricity by as much as 7% - a physical example of just how linked our international interests are. 

Closer to home, projects that prioritise reducing emission through tackling energy poverty -  from energy efficiency schemes to campaigns for publicly owned energy companies - may provide a means of helping heal the some of the deeper divides that the referendum campaign has exposed.

If the failure of Remain shows anything, it’s that economic arguments alone will not always win the day and that a sense of justice – or injustice – is still equally powerful. Luckily, if played right, the debate over energy and the environment might yet be able to win on both.

 

India Bourke is the New Statesman's editorial assistant.