Why Theresa May should back down on immigration bonds

A £3,000 visitor bond will hurt the poorest families, while doing nothing to deal with illegal immigration.

During his latest international tour, David Cameron again told us we are in a "global race". In Pakistan he righty declared, "we want to see the trade and investment relationship between Britain and Pakistan grow." On Tuesday in the House of Commons, the Prime Minister reinforced his message telling us it was "vital that we expand our trade and increase overseas investment into the UK” and that he raised the issue of trade with Pakistan’s new Prime Minister. He had a similar message on his trip to India a few months ago, though as I said at the time his rhetoric often failed to match the reality

Well, here we go again. While David Cameron’s rhetoric abroad is laudable, the reality back home is very different. In recent weeks, Theresa May has been busy briefing Sunday newspapers on her new plan for a £3,000 visitor bond for visitors entering the UK. Which are the countries selected for her pet pilot scheme? You guessed it: India and Pakistan, along with Bangladesh, Sri Lanka, Nigeria and Ghana. So while David Cameron tells us he wants to develop trade with India and Pakistan, Theresa May lets it be known these countries need a bond scheme for visitor visas because she considers them 'high risk'.

With pressure from her backbenchers on immigration and big promises made at the last general election, the Home Secretary wants to be seen to be tough. No doubt she is keen to create an impression that somehow her £3,000 bond proposal will lower net immigration levels. However, immigration as measured by the International Passenger Survey only counts migrants who plan to stay in the UK for more than a year. Since these visitor visas are only issued for up to six months, the bonds will have no impact on net immigration at all.

Meanwhile, the reaction in those countries we want to deepen our trade with has been less than enthusiastic, placing strain on our economic ties and diplomatic relations. India’s Hindustan Times reported the news with the headline: "UK plans visa bonds for 'high-risk' Asians, Africans", highlighting that Theresa May’s plans only affect immigrants from non-white countries. Pakistan’s Foreign Office has protested against the bond requirement, and a leading Pakistani newspaper Dawn reported that "despite the apparently strong political ties, visa issue has remained a major irritant relationship (sic)". The paper also highlights the fact that "over one million Britons of Pakistani origin have contributed significantly to the deepening of bilateral relations", adding to the insult by this government. Nigeria has retaliated too. One of the country's politicians, Abike Dabiri-Erewa, stated that if the changes go ahead, the government would force Britons to pay £20,000 to enter the country.

So the economic rifts that will be caused by this policy are damaging to say the least. Labour politicians have been urging the government to do more to promote trade. Chuka Umunna, in what I think is a first for a shadow cabinet business spokesman, recently led a trade mission to Africa and has been pointing out the long term investment potential of nations such as Nigeria and Ghana. Chuka reminded us that "Ghana is on course to be the eighth fastest growing economy in the world between 2011 and 2015. The IMF expects the Nigerian economy to grow by 7 per cent this year alone."

Nigeria is the seventh largest country in the world and, according to a UN report, its population is set to exceed that of the United States by 2050. In fact, the west African nation will start to compete with China as the second most populous country in the world.

With such a fast-growing population, infrastructure requirements will be absolutely key to Nigeria’s development and the UK now risks losing engineering and trade links with the country because of the British government’s perceived hostility on this issue.

Similarly, we all know that India is a rising force to be reckoned with. The country's economy is growing at an average of, with the IMF forecasting its 2018 GDP levels at $2,980bn. But despite the Cameron government's rhetoric, visa restrictions are already having an impact on the UK’s economic ties with India, with universities reporting a fall in student numbers. The Home Secretary might as well put up a sign saying the UK isn’t open for business.

When I asked the Prime Minister this week if he thought the bond scheme would help or hinder trade, he told me that Theresa May was looking at bonds in order to deal with 'economic migrants' but the bond scheme is no answer to the problem he wants to solve. There are serious questions about how the scheme will work. A £1,000 bond scheme for visitor visas was considered by the last Labour government but soon dropped for fears that it would be unworkable and unfair to the poorest families, while doing nothing to deal with illegal immigration.

 

In recent days in my own Leicester constituency, diaspora communities have reacted with dismay. Everyone accepts we need a system of managed migration alongside measures to deal with illegal immigration. But a bond scheme will hurt genuine visitors who don’t abuse the system. At a local temple over the weekend, constituents asked me if it was really fair that their relations should have to put up £3,000 to attend a graduation or a family wedding or a funeral, or even just visit an old friend. It’s a fair question, so here’s hoping the Home Secretary backs down.

Theresa May arrives to attend a meeting at Downing Street on May 23, 2013. Photograph: Getty Images.

Jon Ashworth is Labour MP for Leicester South. 

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Why isn't Labour putting forward Corbynite candidates?

Despite his successes as a candidate, the organisational victories have gone the way of Corbyn's opponents. 

The contest changes, but the result remains the same: Jeremy Corbyn’s preferred candidate defeated in a parliamentary selection. Afzhal Khan is Labour’s candidate in the Manchester Gorton by-election and the overwhelming favourite to be the seat’s next MP.

Although Khan, an MEP, was one of  the minority of Labour’s European MPs to dissent from a letter from the European parliamentary Labour party calling for Jeremy Corbyn to go in the summer of 2016, he backed Andy Burnham and Tom Watson in 2015, and it is widely believed, fairly or unfairly, that Khan had, as one local activist put it, “the brains to know which way the wind was blowing” rather than being a pukka Corbynite.

For the leader’s office, it was a double defeat;  their preferred candidate, Sam Wheeler, was kept off the longlist, when the party’s Corbynsceptics allied with the party’s BAME leadership to draw up an all ethnic minority shortlist, and Yasmine Dar, their back-up option, was narrowly defeated by Khan among members in Manchester Gorton.

But even when the leadership has got its preferred candidate to the contest, they have been defeated. That even happened in Copeland, where the shortlist was drawn up by Corbynites and designed to advantage Rachel Holliday, the leader’s office preferred candidate.

Why does the Labour left keep losing? Supporters combination of bad luck and bad decisions for the defeat.

In Oldham West, where Michael Meacher, a committed supporter of Jeremy Corbyn’s, was succeeded by Jim McMahon, who voted for Liz Kendall, McMahon was seen to be so far ahead that they had no credible chance of stopping him. Rosena Allin-Khan was a near-perfect candidate to hold the seat of Tooting: a doctor at the local hospital, the seat’s largest employer, with links to both the Polish and Pakistani communities that make up the seat’s biggest minority blocs.  Gillian Troughton, who won the Copeland selection, is a respected local councillor.

But the leadership has also made bad decisions, some claim.  The failure to get a candidate in Manchester Gorton was particularly egregious, as one trade unionist puts it: “We all knew that Gerald was not going to make it [until 2020], they had a local boy with good connections to the trade unions, that contest should have been theirs for the taking”. Instead, they lost control of the selection panel because Jeremy Corbyn missed an NEC meeting – the NEC is hung at present as the Corbynsceptics sacrificed their majority of one to retain the chair – and with it their best chance of taking the seat.

Others close to the leadership point out that for the first year of Corbyn’s leadership, the leader’s office was more preoccupied with the struggle for survival than it was with getting more of its people in. Decisions in by-elections were taken on the hop and often in a way that led to problems later down the line. It made sense to keep Mo Azam, from the party’s left, off the shortlist in Oldham West when Labour MPs were worried for their own seats and about the Ukip effect if Labour selected a minority candidate. But that enraged the party’s minority politicians and led directly to the all-ethnic-minority shortlist in Manchester Gorton.

They also point out that the party's councillor base, from where many candidates are drawn, is still largely Corbynsceptic, though they hope that this will change in the next round of local government selections. (Councillors must go through a reselection process at every election.)

But the biggest shift has very little to do with the Labour leadership. The big victories for the Labour left in internal battles under Ed Miliband were the result of Unite and the GMB working together. Now they are, for various reasons, at odds and the GMB has proven significantly better at working shortlists and campaigning for its members to become MPs.  That helps Corbynsceptics. “The reason why so many of the unions supported Jeremy the first time,” one senior Corbynite argues, “Is they wanted to move the Labour party a little bit to the left. They didn’t want a socialist transformation of the Labour party. And actually if you look at the people getting selected they are not Corbynites, but they are not Blairites either, and that’s what the unions wanted.”

Regardless of why, it means that, two years into Corbyn’s leadership, the Labour left finds itself smaller in parliament than it was at the beginning.  

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