UKIP stokes fear over Bulgarian and Romanian immigration with countdown clock

Ahead of the removal of restrictions on immigration from the two newest EU member states on 1 January 2014, UKIP puts the Tories under pressure.

After Eric Pickles said at the weekend that immigration from Romania and Bulgaria would "cause problems" and could lead to housing shortages, UKIP has wasted little time in exploiting the issue. The party has added a clock to its website counting down the days until 1 January 2014, the moment when transitional controls on migrants from the two newest EU member states expire.

With European elections due to be held in June 2014 (a ComRes poll at the weekend put UKIP in second place on 23 per cent, a point ahead of the Tories), the party intends to make it a major campaign issue. As polling by Lord Ashcroft recently showed, a significant chunk of UKIP's support derives from concern over immigration.

The removal of immigration controls on Bulgaria and Romania is unlikely to lead to an influx comparable to that from the eastern European accession countries in 2004 (the Labour government forecast that just 13,000 a year would emigrate to the UK; the actual figure was 300,000). As Scott Blinder, the director of the Migration Observatory at the University of Oxford, notes in a piece for Comment Is Free, "Romanians and Bulgarians have had open access to the UK, if not its labour markets, for six years already, so many of those who would be interested in travelling to and living in the UK have already come".

In addition, unlike in 2004, when only the UK, Ireland and Sweden opened their labour markets to new EU arrivals, in 2014, all EU member states will do so. As many, if not more, Romanians and Bulgarians will migrate to Italy and Spain, where large diaspora populations already exist, as to the UK. Finally, while the combined populations of the 2004 accession countries is around 70 million, Romania and Bulgaria have 29 million people between them, limiting the potential for mass immigration.

But with Cameron powerless to act in the event of a larger-than-expected migration (EU law guarantees the free movement of people), UKIP has every incentive to maximise the PM's discomfort.

UK Independence Party leader Nigel Farage. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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How can Britain become a nation of homeowners?

David Cameron must unlock the spirit of his postwar predecessors to get the housing market back on track. 

In the 1955 election, Anthony Eden described turning Britain into a “property-owning democracy” as his – and by extension, the Conservative Party’s – overarching mission.

60 years later, what’s changed? Then, as now, an Old Etonian sits in Downing Street. Then, as now, Labour are badly riven between left and right, with their last stay in government widely believed – by their activists at least – to have been a disappointment. Then as now, few commentators seriously believe the Tories will be out of power any time soon.

But as for a property-owning democracy? That’s going less well.

When Eden won in 1955, around a third of people owned their own homes. By the time the Conservative government gave way to Harold Wilson in 1964, 42 per cent of households were owner-occupiers.

That kicked off a long period – from the mid-50s right until the fall of the Berlin Wall – in which home ownership increased, before staying roughly flat at 70 per cent of the population from 1991 to 2001.

But over the course of the next decade, for the first time in over a hundred years, the proportion of owner-occupiers went to into reverse. Just 64 percent of households were owner-occupier in 2011. No-one seriously believes that number will have gone anywhere other than down by the time of the next census in 2021. Most troublingly, in London – which, for the most part, gives us a fairly accurate idea of what the demographics of Britain as a whole will be in 30 years’ time – more than half of households are now renters.

What’s gone wrong?

In short, property prices have shot out of reach of increasing numbers of people. The British housing market increasingly gets a failing grade at “Social Contract 101”: could someone, without a backstop of parental or family capital, entering the workforce today, working full-time, seriously hope to retire in 50 years in their own home with their mortgage paid off?

It’s useful to compare and contrast the policy levers of those two Old Etonians, Eden and Cameron. Cameron, so far, has favoured demand-side solutions: Help to Buy and the new Help to Buy ISA.

To take the second, newer of those two policy innovations first: the Help to Buy ISA. Does it work?

Well, if you are a pre-existing saver – you can’t use the Help to Buy ISA for another tax year. And you have to stop putting money into any existing ISAs. So anyone putting a little aside at the moment – not going to feel the benefit of a Help to Buy ISA.

And anyone solely reliant on a Help to Buy ISA – the most you can benefit from, if you are single, it is an extra three grand from the government. This is not going to shift any houses any time soon.

What it is is a bung for the only working-age demographic to have done well out of the Coalition: dual-earner couples with no children earning above average income.

What about Help to Buy itself? At the margins, Help to Buy is helping some people achieve completions – while driving up the big disincentive to home ownership in the shape of prices – and creating sub-prime style risks for the taxpayer in future.

Eden, in contrast, preferred supply-side policies: his government, like every peacetime government from Baldwin until Thatcher’s it was a housebuilding government.

Why are house prices so high? Because there aren’t enough of them. The sector is over-regulated, underprovided, there isn’t enough housing either for social lets or for buyers. And until today’s Conservatives rediscover the spirit of Eden, that is unlikely to change.

I was at a Conservative party fringe (I was on the far left, both in terms of seating and politics).This is what I said, minus the ums, the ahs, and the moment my screensaver kicked in.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.