Why ministers shouldn't celebrate today's migration figures

With a dramatic fall in the number of international students, the government’s policy 'success' has come at a considerable economic cost.

Today’s migration statistics - which showed a sharp fall in net migration (the difference between immigration and emigration) from 242,000 in the year ending September 2011 to 153,000 in the year ending September 2012 - are, on the face of it, a rare piece of good news for the government. The public want to see less immigration, and these numbers suggest that ministers are making progress towards their commitment to reduce net migration to less than 100,000 by 2015.

However, there is a catch. The decline in immigration has been driven in large part by falling numbers of international students. This highlights three major problems with the government’s strategy, which have real implications for whichever party is in power after 2015.

The first problem is that the government’s 'success' has come at a considerable economic cost to the UK, at a time when the economy needs all the help it can get. Education is one of the UK’s most successful export sectors, and international students contribute an estimated £8bn to the UK economy every year. The government will argue that student numbers are falling because new rules are reducing abuse of the student visa regime. Tougher rules are, no doubt, reducing abuse, but there is no evidence that the scale of abuse at the time the new rules came into place was high enough to explain the subsequent drop in numbers – it is certain that a large number of genuine students are being kept out.

The government will also argue that the ‘brightest and the best’ are still coming to the UK, pointing to figures that show a 5 per cent increase in the number of visas issued via universities (compared to a 46 per cent decline in the numbers issued via FE and English language colleges). But the universities are still, rightly, very concerned. A previous trend of rapid growth has been stopped in its tracks, and a substantial number of their international students come via the UK FE sector – the full impacts of the new rules on universities have yet to be seen.

The second problem is that the impact of falling student numbers on net migration is likely to be short-lived. Since most students stay in the UK only for a short time, reduced student immigration now will mean reduced emigration in the future, which by 2015 could partially reverse the falls in net migration we are seeing now. The Home Office’s own research suggests that only 18 per cent of student migrants are still in the UK after five years. That means that the 56,000 fall in student immigration in the year to September 2012 will only reduce net migration by just over 10,000 in the medium term.

The final problem is that the overwhelming focus on the net migration target risks missing the point with the public. While the government clamps down on groups that the public are least worried about, including international students, in order to meet its target, it is failing to confront many of the issues that cause real concerns.

Migration is a complex issue, which raises genuine trade offs in both policy and political terms. The public, rightly, want to see open and honest discussion about migration from all sides of the political spectrum, but the ritual debate about net migration does not help us to achieve it.

The net migration target may appear to be good politics for the government, but it also lays a number of traps for the future – Labour must continue to resist pressure to adopt the target, and the Conservatives would do well to consider whether or not it makes sense for them to retain it going into the next election.

Sarah Mulley is Associate Director at IPPR

@sarahmulley

David Cameron delivers a speech on immigration at in Ipswich, eastern England. Photograph: Getty Images.

Sarah Mulley is associate director at IPPR.

Photo: Getty
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Why Chris Grayling is Jeremy Corbyn's secret weapon

The housing crisis is Labour's best asset - and Chris Grayling is making it worse. 

It feels like the classic Conservative story: wait until the election is over, then cancel spending in areas that have the temerity to vote Labour. The electrification of rail routes from Cardiff to Swansea – scrapped. So too is the electrification of the Leeds to Manchester route – and of the Midland main line.

But Crossrail 2, which runs from north to south across London and deep into the capital's outer satellites, including that of Transport Secretary Chris Grayling, will go ahead as planned.

It would be grim but effective politics if the Conservatives were pouring money into the seats they won or lost narrowly. There are 25 seats that the Conservatives can take with a swing of 1 per cent from Labour to Tory, and 30 seats that they would lose with a swing of 1 per cent from Tory to Labour.

It wouldn’t be at all surprising if the Conservatives were making spending decisions with an eye on what you might call the frontline 55. But what they’re actually doing is taking money away from north-west marginal constituencies – and lavishing cash on increasingly Labour London. In doing that, they’re actually making their electoral headache worse.

How so? As I’ve written before, the biggest problem for the Conservatives in the long term is simply that not enough people are getting on the housing ladder. That is hurting them in two ways. The first is straightforward: economically-driven voters are not turning blue when they turn 30 because they are not either on or about to mount the first rungs of the housing ladder. More than half of 30-year-olds were mortgage-payers in 1992, when John Major won an unexpected Conservative majority, while under a third were in 2017, when Theresa May unexpectedly lost hers.

But it is also hurting them because culturally-driven voters are getting on the housing ladder, but by moving out of areas where Labour’s socially-concerned core vote congregates in great numbers, and into formerly safe or at least marginal Conservative seats. That effect has reached what might be its final, and for the Conservatives, deadly form in Brighton. All three of the Brighton constituencies – Hove, Brighton Kemptown and Brighton Pavilion – were Conservative-held in 1992. Now none of them are. In Pavilion they are third, and the smallest majority they have to overcome is 9,868, in Kemptown. The same effect helped reduce Amber Rudd’s majority in Hastings, also in East Sussex, to 346.

The bad news for the Conservatives is that the constituencies of Crawley, Reading, Swindon and in the longer-term, Bracknell, all look like Brightons in the making: although only Reading East fell to Labour this time, all saw swings bigger than the national average and all are seeing increasing migration by culturally-driven left-wing voters away from safe Labour seats. All are seeing what you might call “Hackneyfication”: commuters moving from inner city seats but taking their politics with them.

Add to that forced migration from inner London to seats like Iain Duncan Smith’s in Chingford – once a Conservative fortress, now a razor-thin marginal – and even before you add in the appeal of Jeremy Corbyn’s person and platform, the electoral picture for the Conservatives looks bleak.

(It should go without saying that voters are driven by both economics and culture. The binary I’ve used here is simplistic but helpful to understand the growing demographic pressures on the Conservatives.)

There is actually a solution here for the Tories. It’s both to build more housing but also to rebalance the British economy, because the housing crisis in London and the south is driven by the jobs and connectivity crisis in the rest of the United Kingdom.

Or, instead, they could have a number of measures designed to make London’s economy stride still further ahead of the rest, serviced by 5 per cent mortgages and growing numbers of commuter rail services to facilitate a growing volume of consumers from London’s satellite towns, all of which only increase the electoral pressures on their party. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.