Why Clegg is abandoning the Lib Dems' "amnesty" for illegal immigrants

The policy is cited by party activists as one of the main reasons voters turned against the party in 2010 after "Cleggmania".

Nick Clegg's decision to abandon the Lib Dems' policy of "earned citizenship" for illegal immigrants is an admission of political defeat. In his speech on immigration at The Centre Forum, Clegg said nothing to suggest that he believed the policy was wrong in principle, rather that it "risked undermining public confidence" by appearing to "reward those who have broken the law". He added that he was "no longer convinced" that it should be included in the next Lib Dem manifesto, a clear signal that it will be discarded before 2015. 

Among Lib Dem MPs, there is a pragmatic acceptance that the policy, which is supported by just 25 per cent of voters (see Lord Ashcroft's recent poll), was not sustainable. As the final leaders' debate in 2010 showed (see video), it made it too easy for the Conservatives and Labour to portray the party as "soft" on immigration. After Clegg's support for an "amnesty" was highlighted by David Cameron and Gordon Brown, party activists reported a significant backlash. Now, with both Cameron and Ed Miliband toughening their stances on immigration, Clegg could not afford to be left behind again.

The hope among the Lib Dems is that their new "zero tolerance" approach to illegal immigration will make it easier win the argument for a more liberal approach to legal migration. As Clegg rightly pointed out in his speech, Vince Cable's attack on the Tories' net migration target does not put the pair at odds since it has never been official government policy.

Nick Clegg takes questions from journalists after making a speech on immigration at The Centre Forum in London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty
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Scotland's vast deficit remains an obstacle to independence

Though the country's financial position has improved, independence would still risk severe austerity. 

For the SNP, the annual Scottish public spending figures bring good and bad news. The good news, such as it is, is that Scotland's deficit fell by £1.3bn in 2016/17. The bad news is that it remains £13.3bn or 8.3 per cent of GDP – three times the UK figure of 2.4 per cent (£46.2bn) and vastly higher than the white paper's worst case scenario of £5.5bn. 

These figures, it's important to note, include Scotland's geographic share of North Sea oil and gas revenue. The "oil bonus" that the SNP once boasted of has withered since the collapse in commodity prices. Though revenue rose from £56m the previous year to £208m, this remains a fraction of the £8bn recorded in 2011/12. Total public sector revenue was £312 per person below the UK average, while expenditure was £1,437 higher. Though the SNP is playing down the figures as "a snapshot", the white paper unambiguously stated: "GERS [Government Expenditure and Revenue Scotland] is the authoritative publication on Scotland’s public finances". 

As before, Nicola Sturgeon has warned of the threat posed by Brexit to the Scottish economy. But the country's black hole means the risks of independence remain immense. As a new state, Scotland would be forced to pay a premium on its debt, resulting in an even greater fiscal gap. Were it to use the pound without permission, with no independent central bank and no lender of last resort, borrowing costs would rise still further. To offset a Greek-style crisis, Scotland would be forced to impose dramatic austerity. 

Sturgeon is undoubtedly right to warn of the risks of Brexit (particularly of the "hard" variety). But for a large number of Scots, this is merely cause to avoid the added turmoil of independence. Though eventual EU membership would benefit Scotland, its UK trade is worth four times as much as that with Europe. 

Of course, for a true nationalist, economics is irrelevant. Independence is a good in itself and sovereignty always trumps prosperity (a point on which Scottish nationalists align with English Brexiteers). But if Scotland is to ever depart the UK, the SNP will need to win over pragmatists, too. In that quest, Scotland's deficit remains a vast obstacle. 

George Eaton is political editor of the New Statesman.