Immigrants are taking the flak for the government's failings

David Cameron is using a sensitive and important issue purely for political advantage.

Politicians have never been good at talking about immigration. From Thatcher's concerns of being "swamped" by immigrants to Gordon Brown's “British jobs for British Workers” speech, the issue has long been embedded within a perverted political narrative- one in which migrants are characterised as leeches, sucking away at the fruits good Englishmen have bequeathed upon them.

David Cameron's speech this week did little to distance itself from this. Still tormented by the Eastleigh defeat which saw the Ukip surge trouncing the Conservatives, the Prime Minister unveiled a new set of policies assured to win back the disenchanted. And while the favourite buzzwords needed for any immigration speech were present (integration, assimilation, border controls, to name a few), he also used the opportunity to exert some of the harshest policy proposals we've seen come out of CCHQ for a while. Under the new proposals, a migrant job seeker can only receive assistance for six months, will have to face more difficult residency tests, and will have less access to the NHS without private health insurance.

Some progressives may accept these proposals. In a time when British families are reducing their living standards, migrants also need to play their part - big society and all that. Besides, voters have consistently worried about immigration, and now the government are taking action. Further, we're just following the Canadians, and everybody loves them.

The insidious bite in Cameron's speech really came through when he spoke about social housing, where he suggested a waiting period between two and five years for new migrants wishing to get on the waiting list. Of course, this policy responded to the popular notion that immigrants not only get on the social housing list faster, but also get better residences compared to native Britons. Triumphantly, the Prime Minister claimed that his government would end the "something for nothing culture" which apparently all immigrants (except for the select few political strategists like to use to assert they aren't racist) ascribe to.

In fact, this proposal actually shows how badly the government have failed to resolve issues in social housing, jobs and welfare. And with the most recent failings - the AAA downgrade and Osborne's flagship "help to buy" policy heavily criticised following the budget, Cameron is now using immigrants as a way to divert attention from his government's incompetence.

Cameron's argument suggests that the number of migrants coming to the UK inevitably causes a shortfall of social housing. Ergo, restrict access to social housing and the problem is resolved. Except, he chooses to ignore the decrease in social housing resulting from Thatcher's "Right to Buy", or the "Right to Acquire" scheme, of which its legacy speaks only of unaffordable rents and the lowest levels of home ownership since 1987. It also disregards the lack of new affordable homes being built - an issue where the Prime Minister's own party bears a great deal of responsibility. Indeed, the crisis of social housing is not immigrants, but rather the venomous Tory cocktail of greedy landlords and a government more than happy to facilitate them in the name of good business. Depressingly enough, George Osborne's plan is likely to make this existing situation even worse.

The second misappropriation is Cameron's supposed stance on the "something for nothing" culture, where immigrants supposedly plot from their homelands to come to Britain and live luxuriously off the state. The only problem with this, is that it isn't true. In fact, the DWP indicated in 2011 that less than three per cent of benefit claimants were from EU countries. Furthermore, both the 2011 Oxford Migration Observatory report and the ONS Labour Market Statistics report last year indicate that a majority of migrants come to the UK with the intention to work (pdf). Seeing that twice as many foreign migrants were recorded in employment compared to those of British-born origin, it seems clear that these migrants would not only be unable to claim benefits, but would also not be eligible for social housing either.

Despite the statistics, Cameron, and many other senior ministers are continuing to peddle populist rhetoric in order to win back voters. While this might be a great idea to Tory strategists and party backbenchers, it will do little to win the hearts of young Tory moderates, or reinstate trust in the government itself. The truth is that the Prime Minister - once a refreshing change for the Conservatives - is now using a sensitive issue for political advantage. Quite frankly, both British nationals and immigrants deserve a lot better.

David Cameron delivering his speech on immigration in Ipswich earlier this week. Photograph: Getty Images
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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.