Trouble for the Tories as net migration rises to 176,000

The 23,000 increase in net migration suggests Cameron will struggle to meet his target of reducing it to "tens of thousands" by 2015.

After scepticism that David Cameron would even get close to his goal of reducing net migration to "tens of thousands" a year by the end of this parliament, the Conservatives have recently hailed their success in cutting it by a third since 2010. But today's figures from the ONS show that, after five successive quarters of decline, the numbers are now moving in the wrong direction.

In the year to December 2012, net migration (the difference between the number of emigrants and immigrants) stood at 176,000, up from 153,000 in the year to September 2012. This was due to a decline in emigration (which fell from 351,000 to 321,000), rather than an increase in immigration (which fell from 566,000 to 497,000), but since Cameron chose to adopt the net migration figure as his metric of success, the trend is politically problematic (if not economically problematic. As I've previously notedmigrants contribute far more in taxes than they receive in benefits and services and the OBR estimates that Britain needs net migration of around 140,000 a year to limit the increase in the national debt to 99 per cent of GDP.)

Worse for the Tories, it will become even harder for them to reach their target once the transitional controls on Romanian and Bulgarian expire on 1 January 2014. While there are likely to be far fewer new arrivals than UKIP and the right-wing press suggest, the Migration Matters Trust estimates that at least 20,000 will move to the UK. With Cameron powerless to restrict EU immigration, owing to the principle of the free movement of labour, the likelihood is that the total number will rise. Ahead of next summer's European elections, that will prove a political gift for Farage and co. 

David Cameron talks to UK Border Agency officials in their control room during a visit to Heathrow terminal 5. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The 5 things the Tories aren't telling you about their manifesto

Turns out the NHS is something you really have to pay for after all. 

When Theresa May launched the Conservative 2017 manifesto, she borrowed the most popular policies from across the political spectrum. Some anti-immigrant rhetoric? Some strong action on rip-off energy firms? The message is clear - you can have it all if you vote Tory.

But can you? The respected thinktank the Institute for Fiscal Studies has now been through the manifesto with a fine tooth comb, and it turns out there are some things the Tory manifesto just doesn't mention...

1. How budgeting works

They say: "a balanced budget by the middle of the next decade"

What they don't say: The Conservatives don't talk very much about new taxes or spending commitments in the manifesto. But the IFS argues that balancing the budget "would likely require more spending cuts or tax rises even beyond the end of the next parliament."

2. How this isn't the end of austerity

They say: "We will always be guided by what matters to the ordinary, working families of this nation."

What they don't say: The manifesto does not backtrack on existing planned cuts to working-age welfare benefits. According to the IFS, these cuts will "reduce the incomes of the lowest income working age households significantly – and by more than the cuts seen since 2010".

3. Why some policies don't make a difference

They say: "The Triple Lock has worked: it is now time to set pensions on an even course."

What they don't say: The argument behind scrapping the "triple lock" on pensions is that it provides an unneccessarily generous subsidy to pensioners (including superbly wealthy ones) at the expense of the taxpayer.

However, the IFS found that the Conservatives' proposed solution - a "double lock" which rises with earnings or inflation - will cost the taxpayer just as much over the coming Parliament. After all, Brexit has caused a drop in the value of sterling, which is now causing price inflation...

4. That healthcare can't be done cheap

They say: "The next Conservative government will give the NHS the resources it needs."

What they don't say: The £8bn more promised for the NHS over the next five years is a continuation of underinvestment in the NHS. The IFS says: "Conservative plans for NHS spending look very tight indeed and may well be undeliverable."

5. Cutting immigration costs us

They say: "We will therefore establish an immigration policy that allows us to reduce and control the number of people who come to Britain from the European Union, while still allowing us to attract the skilled workers our economy needs." 

What they don't say: The Office for Budget Responsibility has already calculated that lower immigration as a result of the Brexit vote could reduce tax revenues by £6bn a year in four years' time. The IFS calculates that getting net immigration down to the tens of thousands, as the Tories pledge, could double that loss.

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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