Why Tories ought to hate the immigrant health tax

Another week, another bad week to be an immigrant in the UK. With the addition of this so-called preventative measure against "health tourism", the government has put a huge sign on the door of Britain saying foreigners aren't welcome.

This week's knee-jerk policy to appease our grandparents is a £200 a year added to the cost of non-EU migrants visas to cover the costs of their healthcare when inside the UK. Jeremy Hunt, the Tory Minister responsible for the bill, claims this will prevent an epidemic of "health tourism". You'd think Hunt would be more sympathetic to the plight of foreigners likely to need medical care, given his well known love of Australian octogenarian visitors.

That's one of the many ironies of the policy, of course. While it's designed and marketed as dealing with some kind of incredibly rare edge case - someone like Bimbo Ayelebola, the Nigerian single mum of quintuplets, the bulk of the people who will end up paying it are the New York lawyer, the Australian student, the Indian entrepreneur - the kind of immigrants who in theory, we want. As usual with this sort of measure, the largely imaginary people it's designed to stop either won't pay it, or will pay the small levy and be health tourists anyway  - £200 looks pretty cheap compared to the average hospital bill.

It also doesn't do anything to stop the kind of low skilled migration that does apparently worry people on doorsteps and keeps Nigel Farage on Question Time, because a huge amount of that sort of migration comes through the EU, or is illegal anyway.

I mean, obviously, the policy is incredibly stupid on its own terms, even before you go into the maths - in 2011-2012 the NHS spent £33m on treating foreign nationals, of which around £21m was recovered (through directly charging them or via health insurance). The remaining £12m as a proportion of the £109bn NHS budget is almost negligible. It will be interesting to see how this ahem, "giant" £12m subsidy to foreigners can be reconciled with the costs of administering it, not to mention the added costs of untreated foreign nationals walking around with potentially infectious diseases. Still, I suppose Jeremy Hunt can avoid getting TB by hiding in a bush. Of course, it could be designed as a revenue raising exercise in the first place, as there are as many as five million people living here who it will affect.

Earning an extra £200 per person probably sounds pretty tempting, and in theory, it'll pull support from UKIP, and that is probably what motivated the announcement in the first place. My question is, why should these people pay extra? The most ludicrous part of this whole package of measures is that it's predicated on the notion that these foreigners aren't paying their way. Of course, the vast bulk of non-EU foreigners who live in the UK are here on work visas - so they of course pay tax, national insurance, all the rest of it. 

On that note, here's an email I recently received:

Dear friends, family and colleagues, 

As many of you will know, I married Kristina last month, who I met when we were both students at the National Film and Television School. We love each other and want to spend our lives together. 

We both wanted to start out in our respective careers (animation and cinematography) in the UK, but are now coming up against the misguided, cruel and fundamentally stupid new visa rules for the husbands and wives of British citizens. Kristina, who is from the US, may very well be forced to leave the country before 21st April, when her student visa expires - in a week's time - because we don't meet the new financial threshold, which is three times higher than it was before July 2012.

Under the current rules, introduced last July, 47% of employed British citizens would not be able to keep a non-EU spouse in the UK. It's affecting thousands of people, but they are a small part of overall immigration. The government seems to be pandering to extremists by pledging to reduce immigration, and the stringent new rules in the area of marital visas are an attempt to make a small reduction in the figures any which way they can, given the fact that most immigration is from the EU, which they cannot control. Non-EU immigrants have always had their visas stamped 'no recourse to public funds', so the government's argument about wanting to reduce the burden on the state makes no sense. 

But something more fundamental is wrong here: the government is effectively saying that I only really had the right to marry a British or EU citizen, since as it stands, I seem to be penalized for marrying someone of a non-European nationality. Marriage rights have been stratified, plain and simple, and by being under a certain income threshold people are being treated as second class citizens.  

It's a common story - so much for the value of traditional marriage, eh?

While that's all important - and hopefully enough that this silly idea won't survive the eight-week consultation it's due to go through - the thing that strikes me about this policy is how much business leaders hate it. It's the cherry on top of the vast sundae of the other anti-immigration measures that have been proposed and implemented in the last few years - everything from Cleggbonds, to language requirements, to rules about how much people's spouses have to be earning in order to qualify for marital residency. 

Indeed, if you go to most businesses, and ask them for the one supply side reform they'd like, they won't tell they'd like to be able to sack people more easily, or wish they could pay less than the minimum wage, they'll tell you they'd like to make it easier to hire foreigners. Currently, most businesses will reject non-EU nationals as soon as they hear they need a visa because it's too much red tape to sponsor an application. Even if people are willing to put up with the uncertainty of the hire based on a bureaucrat's say-so, then usually firms will only want to go through the shocking incompetence of the UK border authority once.

Even if you can find a firm willing to sponsor you, the fees for the individuals fees are enormous - £600 every six months is not uncommon, especially if you have to renew your contract regularly. £200 a year on top of that perhaps doesn't sound like much to millionaire Jeremy Hunt, and people are bandying around phrases like "it's only £16 a month", but it's not like there's an easy direct debit option to spread your payments. An £800 upfront cost for a Visa, plus a bundle of other red tape, is enough to put off exactly the sort of people we want - skilled, hard-working valuable migrants, like students who have studied here who want to stay on. 

Anyway, as you can see, individually, these measures might almost make sense to your great aunt who "just thinks Britain isn't British anymore". But taken together, they add up to a huge sign on the door of Britain saying foreigners aren't welcome, and they only hurt the kind of law-abiding, hard working migrants the average over 60 on the doorstep professes to like. This is a huge problem - turning the cold shoulder to migrants is costing us billions, and pulling hugely skilled individuals out of the economy. It's about time all those politicians who bang on about kickstarting growth through supply side reform come out from under their rocks and make the case for the benefits of immigration. 

Look, no hands! Health Secretary Jeremy Hunt. Photograph: Getty Images

Willard Foxton is a card-carrying Tory, and in his spare time a freelance television producer, who makes current affairs films for the BBC and Channel 4. Find him on Twitter as @WillardFoxton.

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Chuka Umunna calls for "solidarity" among Labour MPs, whoever is voted leader

The full text of shadow business secretary Chuka Umunna's speech to Policy Network on election-winning ideas for Labour's future, and the weaknesses of the New Labour project.

There has never been an easy time to be a social democrat (or “democratic socialist” as we sometimes call ourselves in Britain). Whereas the right can demonise the poor and extol the virtues of the market, and the hard left can demonise the market and extol the role of the state, our position of constraining the domination of markets and reforming the state is, by definition, more complex.

It is nonetheless the case that social democracy has a historic responsibility, in every generation, to renew democracy and preserve a civic culture. This is achieved not through soundbites and slogans, but through the hard-headed development of a progressive politics that reconciles liberty and democracy, new comers and locals to our communities, business and workers, in a common life that preserves security, prosperity and peace.  This historic mission is all the more urgent now and my determination that we succeed has grown not weakened since our election defeat last May.

But, in order to be heard, it is necessary to make balanced and reasonable argument that both animates and inspires our movement, and which is popular and plausible with the people.  The first is pre-requisite to the second; and there is no choice to be made between your party’s fundamental principles and electability. They are mutually dependent - you cannot do one without the other.

We are in the midst of choosing a new leader and it is clear to anyone who has watched the UK Labour Party leadership election this summer that amongst a significant number there is a profound rage against Third Way politics – as pursued by the likes of Bill Clinton, Tony Blair, Gerhard Schröder and others - as a rejection of our fundamental values.

In the UK there is a view that New Labour accepted an uncritical accommodation with global capital that widened inequality, weakened organised labour and we were too close to the US Republicans and too far from the European left.

I do not believe this is fair, not least because we rescued many of our public services from the scrap heap when we came to office in 1997 and there were very significant achievements  we should celebrate.  New Labour renewed our National Health Service in a fundamental way; we built new schools and improved existing ones; we set up new children’s centres all over the country; we brought in a National Minimum Wage; we worked with others to bring peace to Northern Ireland; we introduced civil partnerships.  Just some of our achievements.

However, though we may take issue with the critique, I do not think we can simply dismiss out of hand those who hold critical views of New Labour. Like any government, the New Labour administration made mistakes - it could and should have achieved more, and done more to challenge the Right’s assumptions about the world. In the end, it is not unreasonable to be ambitious for what your party in government can achieve in building greater equality, liberty, democracy and sustainability. It is far better we acknowledge, not reject, this ambition for a better world, as we seek to forge a new politics of the common good fit for the future.

Realising our values in office has been disrupted by globalisation and the surge of technological forces that are displacing and reshaping industry after industry.

Some argue that globalisation as an ideological construct of the right. But we must recognise that we live in an increasingly integrated world in which markets have led to an unprecedented participation of excluded people in prosperity, a rise in living standards for hundreds of millions  of people and a literacy unprecedented in human history – this is particularly so in emerging economies like my father’s native Nigeria. And the internet has led to a level of accountability that has disturbed elites.

Yet, this has been combined with a concentration of ownership that needs to be challenged, of a subordination of politics that requires creative rather than reactive thinking, and these global forces have exacerbated inequalities as well as helped reduce poverty.

So it is important that we understand the sheer scale and impact of new technologies. At the moment we are engaged in a debate about Uber and its threat to one of the last vestiges of vocational labour markets left in London, those of the black taxi cabs and their attainment of 'The Knowledge'. But the reality is that within the next decade there will be the emergence of driverless cars so we have to intensify our exploration of how to support people in a knowledge economy and the realities of lifelong learning, as well as lifelong teaching. As people live longer we will have to think about how to engage them constructively in work and teaching in new ways.

Once again, I'm addressing all of this, Social Democracy requires a balanced view that domesticates the destructive energy of capital while recognising its creative energy, that recognises the need for new skills rather than simply the protection of old ones. A Social Democracy that recognises that internationalism requires co-operation between states and not a zero sum game that protectionism would encourage.

Above all, Social Democratic politics must recognise the importance of place, of the resources to be found in the local through which the pressures of globalisation can be mediated and shaped. Our job is to shape the future and neither to accept it as a passive fate nor to indulge the fantasy that we can dominate it but to work with the grain of change in order to renew our tradition, recognising the creativity of the workforce, the benefits of democracy and the importance of building a common life.  Sources of value are to be found in local traditions and institutions.

This also requires a recognition that though demonstration and protest are important,; but relationships and conversations are a far more effective way of building a movement for political change.

One of the huge weaknesses of New Labour was in its reliance on mobilisation from the centre rather than organising. It therefore allowed itself to be characterised as an elite project with wide popular support but it did not build a base for its support within the party across the country, and it did not develop leaders from the communities it represented. It was strong on policy but weak on strengthening democratic politics, particularly Labour politics.

Over half a million people are now members, supporters or affiliated supporters of our party, with hundreds of thousands joining in the last few weeks. Some have joined in order to thwart the pursuit of Labour values but many more have joined to further the pursuit of those values, including lots of young people. At a time when so many are walking away from centre left parties across the Western world and many young people do not vote let alone join a party, this is surely something to celebrate.

So it is vital that we now embrace our new joiners and harness the energy they can bring to renewing Labour’s connection with the people. First, we must help as many them as possible to become doorstep activists for our politics. Second, I have long argued UK Labour should campaign and organise not only to win elections but to affect tangible change through local community campaigns. We brought Arnie Graf, the Chicago community organiser who mentored President Obama in his early years, over from the U.S. to help teach us how to community organise more effectively. We should bring Arnie back over to finish the job and help empower our new joiners to be the change they want to see in every community – we need to build on the links they have with local groups and organisations.

I mentioned at the beginning that in every generation Social Democracy is besieged from left and right but the achievements of each generation are defined by the strength of a complex political tradition that strengthens solidarity through protecting democracy and liberty, a role for the state and the market and seeks to shape the future through an inclusive politics. Solidarity is key which is why we must accept the result of our contest when it comes and support our new leader in developing an agenda that can return Labour to office.

Yes, these are troubled times for social democrats. All over Europe there is a sense among our traditional voters that we are remote and do not share their concerns or represent their interests or values.  There is surge of support for populist right wing parties from Denmark to France, of more left wing parties in Greece and Spain and in Britain too. There is renewal of imperial politics in Russia, the murderous and abhorrent regime of ISIL in the Middle East, volatility in the Chinese economy and in Europe a flow of immigration that causes fear and anxiety.

But, the task of Social Democracy in our time is to fashion a politics of hope that can bring together divided populations around justice, peace and prosperity so that we can govern ourselves democratically. We have seen worse than this and weathered the storm. I am looking forward, with great optimism to be being part of a generation that renews our relevance and popularity in the years to come.

Chuka Umunna is the shadow business secretary and the Labour MP for Streatham.