There must be no right turn on immigration

There is no path to victory for Labour through the thickets of anti-immigrant politics and I am confident that Ed Miliband knows this.

Everyone is still talking about the lessons of Eastleigh. But the worst lesson that any mainstream political party could learn, in the light of the UKIP's surge, is the necessity to move right on immigration. It is true that the issue was often raised on the doorstep. And, since 2010, opinion polls have shown high levels of public concern. But what public policy needs is common sense policies on immigration

Sadly, immigration has served as a proxy for race in the British political narrative for so long, that it is still not possible to totally deracialise it. This is true, even though the would-be immigrants currently causing anxiety are eastern European. And there is a small group of people who use immigrant as a generic term for all kinds of people, like refugees, asylum seekers and third generation families from the British Commonwealth, who are not immigrants at all.

But the experience of the Republican Party in the United States is an object lesson in how fierce anti-immigrant rhetoric can rebound. They lost the 2012 presidential election, not just because legally settled Hispanics voted against them in record numbers. But because other voters of immigrant descent (like the Chinese and those from the Indian sub-continent) also fled the party. They read the relentlessly anti-illegal immigrant rhetoric of the party as being hostile to all immigrants, however settled and respectable.

Effective immigration policies are more challenging to implement than the rhetoric of Nigel Farage suggests. The Tory Home Secretary, Theresa May, boasts about cutting the number of immigrants. But in reality, half the drop is down to students (with calamitous results for our universities), while 30 per cent of the net migration reduction is down to more British people leaving. No wonder the coalition's opinion poll lead on immigration is collapsing.

Anti-immigrant policies can have contrary and embarrassing results. The last Labour government tried to deter asylum seekers by giving them cash vouchers instead of money. But vouchers were widely criticised as both stigmatising and impractical. Nor did they do anything to bring down the numbers of asylum seekers - because these are people compelled to flee by war and economic devastation. So the policy was eventually scrapped. Now the Tories are looking at denying access to the NHS to certain categories of immigrant, asylum seeker and visitor. No one defends health tourism. But doctors and GPs are emphatically not interested in being immigration officers. More importantly, if you drive certain members of the population away from seeking treatment for communicable disease, there is a real danger to public health.

It should not surprise anyone that people whose parents or grandparents were immigrants complain about immigration. Anti-immigrant fervour is actually a proxy for economic discontent and will inevitably rise in a recession. As Ed Miliband has pointed out, immigrants don't cause low wages; unregulated labour markets and predatory employers do. There is no path to victory for the Labour Party in 2015 through the thickets of anti-immigrant politics and I am confident that Ed Miliband knows this. There is certainly a pressing need to sort out the chaos at the UK Border Agency. And I warmly welcome the practical policies that my party is shaping around the real discontents of ordinary people; ranging from building more homes to the principle of a living wage.

A couple walk past eastern European shops in Boston, in Lincolnshire. Photograph: Getty Images.

Diane Abbott is Labour MP for Hackney North and Stoke Newington, and shadow secretary of state for health. 

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I was wrong about Help to Buy - but I'm still glad it's gone

As a mortgage journalist in 2013, I was deeply sceptical of the guarantee scheme. 

If you just read the headlines about Help to Buy, you could be under the impression that Theresa May has just axed an important scheme for first-time buyers. If you're on the left, you might conclude that she is on a mission to make life worse for ordinary working people. If you just enjoy blue-on-blue action, it's a swipe at the Chancellor she sacked, George Osborne.

Except it's none of those things. Help to Buy mortgage guarantee scheme is a policy that actually worked pretty well - despite the concerns of financial journalists including me - and has served its purpose.

When Osborne first announced Help to Buy in 2013, it was controversial. Mortgage journalists, such as I was at the time, were still mopping up news from the financial crisis. We were still writing up reports about the toxic loan books that had brought the banks crashing down. The idea of the Government promising to bail out mortgage borrowers seemed the height of recklessness.

But the Government always intended Help to Buy mortgage guarantee to act as a stimulus, not a long-term solution. From the beginning, it had an end date - 31 December 2016. The idea was to encourage big banks to start lending again.

So far, the record of Help to Buy has been pretty good. A first-time buyer in 2013 with a 5 per cent deposit had 56 mortgage products to choose from - not much when you consider some of those products would have been ridiculously expensive or would come with many strings attached. By 2016, according to Moneyfacts, first-time buyers had 271 products to choose from, nearly a five-fold increase

Over the same period, financial regulators have introduced much tougher mortgage affordability rules. First-time buyers can be expected to be interrogated about their income, their little luxuries and how they would cope if interest rates rose (contrary to our expectations in 2013, the Bank of England base rate has actually fallen). 

A criticism that still rings true, however, is that the mortgage guarantee scheme only helps boost demand for properties, while doing nothing about the lack of housing supply. Unlike its sister scheme, the Help to Buy equity loan scheme, there is no incentive for property companies to build more homes. According to FullFact, there were just 112,000 homes being built in England and Wales in 2010. By 2015, that had increased, but only to a mere 149,000.

This lack of supply helps to prop up house prices - one of the factors making it so difficult to get on the housing ladder in the first place. In July, the average house price in England was £233,000. This means a first-time buyer with a 5 per cent deposit of £11,650 would still need to be earning nearly £50,000 to meet most mortgage affordability criteria. In other words, the Help to Buy mortgage guarantee is targeted squarely at the middle class.

The Government plans to maintain the Help to Buy equity loan scheme, which is restricted to new builds, and the Help to Buy ISA, which rewards savers at a time of low interest rates. As for Help to Buy mortgage guarantee, the scheme may be dead, but so long as high street banks are offering 95 per cent mortgages, its effects are still with us.