The referendum no one is talking about

While Westminster is fixated on the EU, Scotland is moving ever closer to independence.

While the Tories have been warring over whether to hold a national vote on EU membership, Alex Salmond has been quietly devising his strategy for a different referendum. As the SNP leader confirmed at his party's conference last weekend, the ballot paper will contain two questions. The first will be a straight yes/no question on Scottish independence, the second will be on full fiscal autonomy or "devolution max" (devo max).

Aware that he may not be able to win a majority for independence, Salmond is attempting to ensure that the SNP ends up with a consolation prize. But no one should underestimate how radical a step fiscal autonomy would be. Scotland would win complete control over spending, borrowing and taxation, leaving Westminster in charge of foreign affairs and defence. In an ingenious move, Salmond is attempting to turn the SNP into the party of independence and the party of devolution. The distance between the two is smaller than some imagine. An independent Scotland would retain the Queen as its head of state, British military bases (although the Trident subs would go) and the pound until, in Salmond's words, "it was in Scotland's economic advantage to join the euro" (in other words, indefinitely).

However, there is every reason to believe that Scotland will vote for full independence in the second half of the five-year Holyrood parliament. The SNP has already amassed a £1m campaign war chest and the polls are moving its way. A ComRes survey published on 15 October showed that 49 per cent of Scots now favour independence, with just 37 per cent opposed. Scottish Lib Dem leader Willie Rennie posed the question: "What if devo max got 99 per cent 'yes' and one per cent 'no' in the vote while the independence option got 51 per cent 'yes' and 49 per cent 'no'?" But Salmond has already confirmed that a slim majority for independence will trump a large majority for devo max. A brilliant politician and strategist, he will wait until discontent with the Westminster coalition is at its height before calling a referendum.

Labour and the Tories, leaderless as they are in Scotland, are not even close to devising a strategy to combat Salmond. After the SNP's remarkable victory in May, David Cameron vowed to defend the United Kingdom with "every fibre in my body". But we've seen little evidence of that so far. As for Ed Miliband, he has largely avoided the subject since forgetting the name of one his party's leadership candidates (Ken Macintosh), even though Scottish independence would automatically strip his party of 41 seats. For now, all the momentum is with Salmond and the SNP. This must change. And soon.

George Eaton is political editor of the New Statesman.

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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