Blow for Cameron as net migration rises to 239,000

The PM will struggle to meet his pledge to reduce net migration to "tens of thousands" a year.

David Cameron memorably promised to reduce net migration from "the hundreds of thousands to the tens of thousands" by the end of this parliament. But the latest figures suggest that this will prove a Sisyphean task. Rather than falling, net migration is rising.

Estimates from the ONS show that net migration to Britain rose by 21 per cent to 239,000 last year, driven by a big fall in emigration (although Sky News leads with the erroneous claim that "immigration" is up to 239,000).The number of people leaving Britain to live abroad for more than 12 months was 336,000 in 2010, the lowest figure since June 2005. Thus, as Sunder Katwala quips, the government would have a better chance of hitting its target if it persuaded more Britons to leave (something George Osborne's economic policies may yet achieve).

Long-term immigration was 575,000, similar to the levels seen since 2004. The number of people coming from outside Europe to work with a definite job offer is at its lowest since 2004 at 110,000. However, immigration from within the EU, which is not subject to the coalition's immigration cap, rose to 39,000 in 2010, compared with 5,000 in 2009. It's unambiguously bad news for the Tories. So long as immigration from eastern Europe remains high and emigration remains low, both trends which ministers have no control over, Cameron cannot hope to meet his pledge.

With 69 per cent of new jobs going to foreign nationals, the migration cap was seen as an important supplement to Iain Duncan Smith's welfare reforms. But as the ippr's Matt Cavanagh wrote yesterday on The Staggers, it's now clear that the coalition cannot rely on the cap to reduce youth unemployment. The question now is whether the it will impose even more stringent restrictions on immigration or rethink its jobs strategy.

Update: The Sky News website has now removed its misleading claim that "immigration" is up to 239,000.

George Eaton is political editor of the New Statesman.

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The Conservative-DUP deal is great news for the DUP, but bad news for Theresa May

The DUP has secured a 10 per cent increase in Northern Ireland's budget in return for propping up the Prime Minister.

Well, that’s that then. Theresa May has reached an accord with the Democratic Unionist Party to keep herself in office. Among the items: the triple lock on pensions will remain in place, and the winter fuel allowance will not be means-tested across the United Kingdom. In addition, the DUP have bagged an extra £1bn of spending for Northern Ireland, which will go on schools, hospitals and roads. That’s more than a five per cent increase in Northern Ireland’s budget, which in 2016-7 was just £9.8bn.

The most politically significant item will be the extension of the military covenant – the government’s agreement to look after veterans of war and their families – to Northern Ireland. Although the price tag is small, extending priority access to healthcare to veterans is particularly contentious in Northern Ireland, where they have served not just overseas but in Northern Ireland itself. Sensitivities about the role of the Armed Forces in the Troubles were why the Labour government of Tony Blair did not include Northern Ireland in the covenant in 2000, when elements of it were first codified.

It gives an opportunity for the SNP…

Gina Miller, whose court judgement successfully forced the government into holding a vote on triggering Article 50, has claimed that an increase in spending in Northern Ireland will automatically entail spending increases in Wales and Scotland thanks to the Barnett formula. This allocates funding for Wales, Scotland and Northern Ireland based on spending in England or on GB-wide schemes.

However, this is incorrect. The Barnett formula has no legal force, and, in any case, is calculated using England as a baseline. However, that won’t stop the SNP MPs making political hay with the issue, particularly as “the Vow” – the last minute promise by the three Unionist party leaders during the 2014 independence referendum – promised to codify the formula. They will argue this breaks the spirit, if not the letter of the vow. 

…and Welsh Labour

However, the SNP will have a direct opponent in Wales. The Welsh Labour party has long argued that the Barnett formula, devised in 1978, gives too little to Wales. They will take the accord with Northern Ireland as an opportunity to argue that the formula should be ripped up and renegotiated.

It risks toxifying the Tories further

The DUP’s socially conservative positions, though they put them on the same side as their voters, are anathema to many voters in England, Scotland and Wales. Although the DUP’s positions on abortion and equal marriage will not be brought to bear on rUK, the association could leave a bad taste in the mouth for voters considering a Conservative vote next time. Added to that, the bumper increase in spending in Northern Ireland will make it even harder to win support for continuing cuts in the rest of the United Kingdom.

All of which is moot if the Conservatives U-Turn on austerity

Of course, all of these problems will fade if the Conservatives further loosen their deficit target, as they did last year. Turning on the spending taps in England, Scotland and Wales is probably their last, best chance of turning around the grim political picture.

It’s a remarkable coup for Arlene Foster

The agreement, which ticks a number of boxes for the DUP, caps off an astonishing reversal of fortunes for the DUP’s leader, Arlene Foster. The significant increase in spending in Northern Ireland – equivalent to the budget of the entirety of the United Kingdom going up by £70bn over two years  – is only the biggest ticket item. The extension of the military covenant to Northern Ireland appeals to two longstanding aims of the DUP. The first is to end “Northern Ireland exceptionalism” wherever possible, and the second is the red meat to their voters in offering better treatment to veterans.

It feels like a lifetime ago when you remember that in March 2017, Foster was a weakened figure having led the DUP into its worst election result since the creation of the devolved assembly at Stormont.

The election result, in which the DUP took the lion’s share of Westminster seats in Northern Ireland, is part of that. But so too are the series of canny moves made by Foster in the aftermath of her March disappointment. By attending Martin McGuinness’s funeral and striking a more consensual note on some issues, she has helped shed some of the blame for the collapse of power-sharing, and proven herself to be a tricky negotiator.

Conservatives are hoping it will be plain sailing for them, and the DUP from now on should take note. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.

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