The net migration target is bad policy and bad politics

The cuts to foreign student numbers come at a significant economic cost to the UK.

The latest migration statistics have been met with the usual barrage of claim and counter-claim. The government is claiming the fall in net migration as a sign of success in its efforts to get net migration down to less than 100,000 a year. On the other side, the education sector (particularly further education and English language colleges) will see the 26 per cent decline in foreign student visas as a disaster for the economy. Meanwhile, the latest report from the Independent Chief Inspector of Borders and Immigration highlights failures to enforce student visa rules properly.

It is clear that it's premature of the government to declare victory on the net migration target – there’s a long way to go yet. Yesterday's figures showed net migration in the year to March 2012 of 183,000, against the government’s target of less than 100,000. Although ministers have tightened up immigration rules across the board, the main effects on migration numbers have come from changes to the student visa regime. The net migration figures published yesterday only cover the period up to March 2012 – more up-to-date student visa data suggest that further falls in the net migration figures are likely in the coming months. But the impact of declining foreign student numbers on net migration is likely to be short-lived. Because most students only stay in the UK for a short time, reduced immigration today means reduced emigration in two or three years’ time, which could see net migration rise again. That would further undermine public confidence in the government’s ability to deliver on immigration.

It is also clear that cuts to student numbers come at a significant economic cost to the UK. Although government rhetoric around student visas is usually focused on abuse of the system, it is clear that the falls in foreign student numbers required for the government to meet its net migration target would mean drastic cuts to the numbers of genuine foreign students. Indeed, it is hard to argue that today’s statistics show anything other than a reduction in the number of genuine students coming to the UK. All this is costing the economy billions (as the government’s own impact assessment acknowledged) at a time when we can ill-afford to reduce export earnings (which is what foreign student fees and spending are), and is leading to more jobs being lost in the UK.

And none of this will help assuage public concerns about immigration if UKBA cannot carry out the basic functions of enforcement. It is meaningless to talk about making the rules tougher if you can’t enforce the ones you already have. It may even be that the government’s single-minded focus on reducing net migration creates new enforcement problems in the future. For example, "student visitors" who come to the UK for less than 12 months do not count as migrants for the purposes of net migration figures, and are subject to less rigorous checks than those coming through the main student visa route. The number of student visitor visas issued is continuing to rise, perhaps because tough action on student visas aimed at meeting the net migration target has led to a displacement effect. The government needs to be sure that it has the systems in place to deal with this.

All this confirms that the net migration target is leading to bad policy. It may also be bad politics. The government need to be brave enough to change their approach, or at least exclude students from the net migration target. Labour need to admit past mistakes, but avoid getting into a "bidding war" on migration numbers, as Ed Balls acknowledged yesterday. Politicians from all sides need to be prepared to have an honest discussion with the public about the difficult trade-offs that migration policy presents to policy makers. Sadly, the ritual debate about net migration does not move us further towards that goal.

Sarah Mulley is associate director at IPPR.

A protester takes part in a demonstration outside the Home Office over restrictions on foreign students. Photograph: Getty Images.

Sarah Mulley is associate director at IPPR.

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Why Angela Merkel's comments about the UK and US shouldn't be given too much weight

The Chancellor's comments are aimed at a domestic and European audience, and she won't be abandoning Anglo-German relationships just yet.

Angela Merkel’s latest remarks do not seem well-judged but should not be given undue significance. Speaking as part of a rally in Munich for her sister party, the CSU, the German Chancellor claimed “we Europeans must really take our own fate into our hands”.

The comments should be read in the context of September's German elections and Merkel’s determination to restrain the fortune of her main political rival, Martin Schulz – obviously a strong Europhile and a committed Trump critic. Sigmar Gabriel - previously seen as a candidate to lead the left-wing SPD - has for some time been pressing for Germany and Europe to have “enough self-confidence” to stand up to Trump. He called for a “self-confident position, not just on behalf of us Germans but all Europeans”. Merkel is in part responding to this pressure.

Her words were well received by her audience. The beer hall crowd erupted into sustained applause. But taking an implicit pop at Donald Trump is hardly likely to be a divisive tactic at such a gathering. Criticising the UK post-Brexit and the US under Trump is the sort of virtue signalling guaranteed to ensure a good clap.

It’s not clear that the comments represent that much of a new departure, as she herself has since claimed. She said something similar earlier this year. In January, after the publication of Donald Trump’s interview with The Times and Bild, she said that “we Europeans have our fate in our own hands”.

At one level what Merkel said is something of a truism: in two year’s time Britain will no longer be directly deciding the fate of the EU. In future no British Prime Minister will attend the European Council, and British MEPs will leave the Parliament at the next round of European elections in 2019. Yet Merkel’s words “we Europeans”, conflate Europe and the EU, something she has previously rejected. Back in July last year, at a joint press conference with Theresa May, she said: “the UK after all remains part of Europe, if not of the Union”.

At the same press conference, Merkel also confirmed that the EU and the UK would need to continue to work together. At that time she even used the first person plural to include Britain, saying “we have certain missions also to fulfil with the rest of the world” – there the ‘we’ meant Britain and the EU, now the 'we' excludes Britain.

Her comments surely also mark a frustration born of difficulties at the G7 summit over climate change, but Britain and Germany agreed at the meeting in Sicily on the Paris Accord. More broadly, the next few months will be crucial for determining the future relationship between Britain and the EU. There will be many difficult negotiations ahead.

Merkel is widely expected to remain the German Chancellor after this autumn’s election. As the single most powerful individual in the EU27, she is the most crucial person in determining future relations between the UK and the EU. Indeed, to some extent, it was her intransigence during Cameron’s ‘renegotiation’ which precipitated Brexit itself. She also needs to watch with care growing irritation across the EU at the (perceived) extent of German influence and control over the institutions and direction of the European project. Recent reports in the Frankfurter Allgemeine Zeitung which suggested a Merkel plan for Jens Weidmann of the Bundesbank to succeed Mario Draghi at the ECB have not gone down well across southern Europe. For those critics, the hands controlling the fate of Europe are Merkel’s.

Brexit remains a crucial challenge for the EU. How the issue is handled will shape the future of the Union. Many across Europe’s capitals are worried that Brussels risks driving Britain further away than Brexit will require; they are worried lest the Channel becomes metaphorically wider and Britain turns its back on the continent. On the UK side, Theresa May has accepted the EU, and particularly Merkel’s, insistence, that there can be no cherry picking, and therefore she has committed to leaving the single market as well as the EU. May has offered a “deep and special” partnership and a comprehensive free trading arrangement. Merkel should welcome Britain’s clarity. She must work with new French President Emmanuel Macron and others to lead the EU towards a new relationship with Britain – a close partnership which protects free trade, security and the other forms of cooperation which benefit all Europeans.

Henry Newman is the director of Open Europe. He tweets @henrynewman.

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