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. 

Photo: Getty Images
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The Fire Brigades Union reaffiliates to Labour - what does it mean?

Any union rejoining Labour will be welcomed by most in the party - but the impact on the party's internal politics will be smaller than you think.

The Fire Brigades Union (FBU) has voted to reaffiliate to the Labour party, in what is seen as a boost to Jeremy Corbyn. What does it mean for Labour’s internal politics?

Firstly, technically, the FBU has never affliated before as they are notionally part of the civil service - however, following the firefighters' strike in 2004, they decisively broke with Labour.

The main impact will be felt on the floor of Labour party conference. Although the FBU’s membership – at around 38,000 – is too small to have a material effect on the outcome of votes themselves, it will change the tenor of the motions put before party conference.

The FBU’s leadership is not only to the left of most unions in the Trades Union Congress (TUC), it is more inclined to bring motions relating to foreign affairs than other unions with similar politics (it is more internationalist in focus than, say, the PCS, another union that may affiliate due to Corbyn’s leadership). Motions on Israel/Palestine, the nuclear deterrent, and other issues, will find more support from FBU delegates than it has from other affiliated trade unions.

In terms of the balance of power between the affiliated unions themselves, the FBU’s re-entry into Labour politics is unlikely to be much of a gamechanger. Trade union positions, elected by trade union delegates at conference, are unlikely to be moved leftwards by the reaffiliation of the FBU. Unite, the GMB, Unison and Usdaw are all large enough to all-but-guarantee themselves a seat around the NEC. Community, a small centrist union, has already lost its place on the NEC in favour of the bakers’ union, which is more aligned to Tom Watson than Jeremy Corbyn.

Matt Wrack, the FBU’s General Secretary, will be a genuine ally to Corbyn and John McDonnell. Len McCluskey and Dave Prentis were both bounced into endorsing Corbyn by their executives and did so less than wholeheartedly. Tim Roache, the newly-elected General Secretary of the GMB, has publicly supported Corbyn but is seen as a more moderate voice at the TUC. Only Dave Ward of the Communication Workers’ Union, who lent staff and resources to both Corbyn’s campaign team and to the parliamentary staff of Corbyn and McDonnell, is truly on side.

The impact of reaffiliation may be felt more keenly in local parties. The FBU’s membership looks small in real terms compared Unite and Unison have memberships of over a million, while the GMB and Usdaw are around the half-a-million mark, but is much more impressive when you consider that there are just 48,000 firefighters in Britain. This may make them more likely to participate in internal elections than other affiliated trade unionists, just 60,000 of whom voted in the Labour leadership election in 2015. However, it is worth noting that it is statistically unlikely most firefighters are Corbynites - those that are will mostly have already joined themselves. The affiliation, while a morale boost for many in the Labour party, is unlikely to prove as significant to the direction of the party as the outcome of Unison’s general secretary election or the struggle for power at the top of Unite in 2018. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.