How fears over Romanian and Bulgarian immigration have been exaggerated

A new survey shows that just one per cent of Romanians and four per cent of Bulgarians have begun to look for work in the UK and most will only migrate with a firm offer.

Few subjects have exercised Conservative MPs more in recent months than the subject of immigration from Romania and Bulgaria. Today, ahead of the end of transitional controls on the countries in 2014, parliament will debate an e-petition urging the government to stop "mass immigration from Bulgarian and Romanians" (it has received 145,364 signatures). 

But will there be any "mass immigration" to stop? A Newsnight survey of more than a thousand people in each country, the first to be conducted in recent years, suggests not. Asked to pick their first choice of EU country to move to in either 2013 or 2014, just 4.6 per cent of Romanians and 9.3 per cent of Bulgarians chose the UK. When asked specifically whether they would consider the UK as a destination, these numbers rose to 8.2 per cent for Romanians and 13.6 per cent for Bulgarians. But questioned on whether they have made concrete plans to move to UK, such as searching for accommodation and employment, these figures fall significantly. Just 1.2 per cent of Bulgarians and 0.4 of Romanians have begun to look accommodation and only four per cent of Bulgarians and one per cent of Romanians have started to look for work either with a recruitment agency or independently. In addition, of those looking for work, 65 per cent of Romanians and 60 per cent of Bulgarians said they would only migrate to the UK with a firm offer of employment. 

History shows that when assessing the likely number of migrants, it's important to distinguish between potential and actual plans. Past surveys have shown that as many as 50 per cent of Bulgarians would like to work abroad but in the last decade only around six per cent have actually left. 

It has long been clear that the removal of immigration controls on the countries 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). Romanians and Bulgarians have already had open access to the UK, if not its labour markets, since joining the EU in 2007, so many of those interested in living and working in the country 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 UKIP likely to exploit the issue for all its worth in the local elections, the Tories are unlikely to dial down their rhetoric accordingly. 

A protester waves a Romanian 1989 Revolution flag during a protest at Piata Universitatii square. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR