What would a progressive immigration policy look like?

The Conservatives' net migration target is wrong but the centre-left cannot ignore the question of numbers.

Eric Pickles’s comments about Romanian and Bulgarian immigration, followed by today’s intervention by Migration Watch on the same issue, have sparked another lively media debate about migration policy.

The government have based their migration policy on a target to reduce net migration to less than 100,000 a year, one they seem likely to miss, not least because they cannot limit migration from elsewhere in the EU. Ed Miliband has suggested that Labour’s approach to migration will go beyond the confines of immigration rules (as it must, in light of EU migration). His interventions in the debate have focused on how economic and integration policy can respond to migration.

But underneath the regular political and policy arguments lies a more fundamental debate about what migration policy should be seeking to achieve. The Conservatives’ answer is that the purpose of migration policy is to reduce net migration. That is appealingly simple, but bad policy and bad politics.So what might a centre-left alternative look like?

The first thing to say is that the most fundamental responsibility of governments of all political hues should be to ensure that migration policy is democratically accountable, governed by the rule of law (including human rights law), and effectively implemented. Of course, this is easier said than done, and is sometimes uncomfortable for those on the left, involving as it does both difficult conversations with the public and highly sensitive decisions about individual cases involving vulnerable people.

Beyond this very basic responsibility, there is plenty of room for debate about what governments should try to achieve with migration policy. Many people would agree that one important objective should be to secure economic benefits for the UK. Indeed, this was arguably the driving motivation behind much of Labour’s immigration policy when in government, and has been a key criticism of the coalition’s approach.

But a centre-left or progressive migration policy must aim to do more than simply respond to the needs of business. Migration policy must be part of a strategy to form the economy we want, not just a tool to service the needs of the one that we have. A progressive migration policy must also seek to manage the cultural and social impacts of migration, take particular care to avoid increasing inequality, and pay particular attention to the impacts on vulnerable groups. This means tackling migration’s impacts not only through immigration rules, but also through wider social policy. Labour did not do enough of this in government, particularly in response to rapid migration from Poland and other countries after 2004.

However, there is a risk that this kind of approach to migration policy loses touch with the core metric that concerns the public: the impact of policy on migration flows. This was the trap that Labour fell into after 2004, when dramatic increases in immigration exposed a policy approach that seemed to the public to be much to laissez-faire on the issue of numbers.

The Conservatives' net migration target is wrong (not least because it over-simplifies and ignores much about migration flows that is important), but that does not mean that anyone in the migration debate can ignore the question of numbers. It is not enough to set immigration rules and then take no view on the pace and pattern of migration flows that result. Even those who believe that migration has generally been a good thing for the UK should accept that this does not mean that more migration would necessarily be even better: both costs and benefits are non-linear.

People on all sides of the immigration debate should agree that accurate and timely data on the scale, nature and pattern of migration flows are essential for good policymaking. This data is something the UK currently lacks, which makes the current debate about net migration levels even less productive. It is also reasonable to expect politicians and policymakers to respond quickly to rapid changes in migration. The right response will not always be about the immigration rules (indeed, as with EU migration, there are many circumstances when it cannot be), but the public are right to expect government to take steps to manage the impacts of migration.

The right approach to migration policy is necessarily more complicated then the Conservative’s net migration target. But it is also common sense: have a democratic debate, set fair rules and enforce them, increase the benefits (economic and social) of migration while managing the costs, pay attention to impacts on the most vulnerable, and keep a weather eye on the numbers.

The devil is in the detail, of course, but perhaps if everyone in the migration debate could agree on the question, we would get better answers.

Sarah Mulley is associate director at IPPR

She tweets as @sarahmulley

Home Secretary Theresa May makes a speech on immigration at Policy Exchange on December 12, 2012 in London. Photograph: Getty Images.

Sarah Mulley is associate director at IPPR.

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The Autumn Statement proved it – we need a real alternative to austerity, now

Theresa May’s Tories have missed their chance to rescue the British economy.

After six wasted years of failed Conservative austerity measures, Philip Hammond had the opportunity last month in the Autumn Statement to change course and put in place the economic policies that would deliver greater prosperity, and make sure it was fairly shared.

Instead, he chose to continue with cuts to public services and in-work benefits while failing to deliver the scale of investment needed to secure future prosperity. The sense of betrayal is palpable.

The headline figures are grim. An analysis by the Institute for Fiscal Studies shows that real wages will not recover their 2008 levels even after 2020. The Tories are overseeing a lost decade in earnings that is, in the words Paul Johnson, the director of the IFS, “dreadful” and unprecedented in modern British history.

Meanwhile, the Treasury’s own analysis shows the cuts falling hardest on the poorest 30 per cent of the population. The Office for Budget Responsibility has reported that it expects a £122bn worsening in the public finances over the next five years. Of this, less than half – £59bn – is due to the Tories’ shambolic handling of Brexit. Most of the rest is thanks to their mishandling of the domestic economy.

 

Time to invest

The Tories may think that those people who are “just about managing” are an electoral demographic, but for Labour they are our friends, neighbours and the people we represent. People in all walks of life needed something better from this government, but the Autumn Statement was a betrayal of the hopes that they tried to raise beforehand.

Because the Tories cut when they should have invested, we now have a fundamentally weak economy that is unprepared for the challenges of Brexit. Low investment has meant that instead of installing new machinery, or building the new infrastructure that would support productive high-wage jobs, we have an economy that is more and more dependent on low-productivity, low-paid work. Every hour worked in the US, Germany or France produces on average a third more than an hour of work here.

Labour has different priorities. We will deliver the necessary investment in infrastructure and research funding, and back it up with an industrial strategy that can sustain well-paid, secure jobs in the industries of the future such as renewables. We will fight for Britain’s continued tariff-free access to the single market. We will reverse the tax giveaways to the mega-rich and the giant companies, instead using the money to make sure the NHS and our education system are properly funded. In 2020 we will introduce a real living wage, expected to be £10 an hour, to make sure every job pays a wage you can actually live on. And we will rebuild and transform our economy so no one and no community is left behind.

 

May’s missing alternative

This week, the Bank of England governor, Mark Carney, gave an important speech in which he hit the proverbial nail on the head. He was completely right to point out that societies need to redistribute the gains from trade and technology, and to educate and empower their citizens. We are going through a lost decade of earnings growth, as Carney highlights, and the crisis of productivity will not be solved without major government investment, backed up by an industrial strategy that can deliver growth.

Labour in government is committed to tackling the challenges of rising inequality, low wage growth, and driving up Britain’s productivity growth. But it is becoming clearer each day since Theresa May became Prime Minister that she, like her predecessor, has no credible solutions to the challenges our economy faces.

 

Crisis in Italy

The Italian people have decisively rejected the changes to their constitution proposed by Prime Minister Matteo Renzi, with nearly 60 per cent voting No. The Italian economy has not grown for close to two decades. A succession of governments has attempted to introduce free-market policies, including slashing pensions and undermining rights at work, but these have had little impact.

Renzi wanted extra powers to push through more free-market reforms, but he has now resigned after encountering opposition from across the Italian political spectrum. The absence of growth has left Italian banks with €360bn of loans that are not being repaid. Usually, these debts would be written off, but Italian banks lack the reserves to be able to absorb the losses. They need outside assistance to survive.

 

Bail in or bail out

The oldest bank in the world, Monte dei Paschi di Siena, needs €5bn before the end of the year if it is to avoid collapse. Renzi had arranged a financing deal but this is now under threat. Under new EU rules, governments are not allowed to bail out banks, like in the 2008 crisis. This is intended to protect taxpayers. Instead, bank investors are supposed to take a loss through a “bail-in”.

Unusually, however, Italian bank investors are not only big financial institutions such as insurance companies, but ordinary households. One-third of all Italian bank bonds are held by households, so a bail-in would hit them hard. And should Italy’s banks fail, the danger is that investors will pull money out of banks across Europe, causing further failures. British banks have been reducing their investments in Italy, but concerned UK regulators have asked recently for details of their exposure.

John McDonnell is the shadow chancellor


John McDonnell is Labour MP for Hayes and Harlington and has been shadow chancellor since September 2015. 

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump