Westminster may dabble in xenophobia, but the reality is that racism isn’t popular

Britain’s immigration debate would look very different if ministers overcame their fear of the fringe and trusted voters with a more honest account of the country we have.

Painted in a certain light, Britain in the summer of 2013 can be made to look pretty nasty. Government vans crawled the streets with a threat to migrants conveyed in the tone of a police state and the idiom of the far right: “Go home or face arrest.” Politicians blame every malaise on foreign interlopers: new arrivals with jobs must be jumping the queue; those without work must be gobbling benefits and hogging hospital beds. Westminster cringes before Ukip, a party that lubricates intolerance with theatrical pub cheer.

But with a change of palette, the same country can be construed differently. The menacing vans have been steered off the streets by the threat of a legal challenge, exposing a failure of process at the Home Office. The stunt has been quietly disowned by Downing Street. (“The Prime Minister probably didn’t even know it was happening,” a senior Tory adviser tells me.) Even Nigel Farage affected distaste at a “nasty, Big Brother” device.

The anxiety about immigration that shows up in opinion polls is not matched by an exclusion of immigrants and their families from British culture. Only a year ago, the nation cheered Mo Farah and Jessica Ennis-Hill, flagbearers for multi-ethnic Britishness, as its Olympic king and queen. TV audiences elected a Hungarian dance troupe as this year’s winner of Britain’s Got Talent. It isn’t a scientific reading of the collective mood but it suggests we are some way off from nationalist frenzy.

For every ministerial dabble in the vilification of migrants, there is a caveat of admiration for the contribution that foreigners have made to the enrichment of these isles. That is the paradox of British political xenophobia – the racist element in populism must be discreet because overt racism isn’t popular.

There is plainly some ugly bigotry expressed in Ukip’s rise but the stronger animus is reserved for politicians from other parties who are accused of colluding in an open-border policy and sneering at anyone who objects. Conservative and Labour MPs say the pro-Farage voters they meet on the doorstep barely distinguish between a blue and a red rosette. They are treated as interchangeable logos on one governing machine.

So there may be less mileage than Conservative strategists think in boasting that the Tories are slamming shut the gates supposedly left open by Labour. When official statistics show net migration falling, voters don’t believe it. Besides, the transitional controls on migration from Bulgaria and Romania – EU members since 2007, whose access to the British jobs market has been delayed – will be lifted in January 2014. Ukip officials barely contain their glee at the unravelling this portends for Conservative claims to be running a “tough” border regime.

Labour suffers from a complex of agonies over immigration. It knows it has lost thousands of votes over the issue. The political computation of that number is then muddled by contradictory impulses: anti-racism as an ethical hallmark of left politics; a tendency to be automatically pro-European for fear of overlapping with Little Englanders’ cartoon hatred of Brussels; a liberal conviction that enterprising migrants are good for the economy and society; a less liberal distaste for the way globalisation treats labour as a fluid resource, sloshing across borders at capital’s behest.

Then there is Ed Miliband’s background as the son of Jewish refugees from the Nazis. The Labour leader is obliged by political reality to address resentment of mass immigration and driven by his upbringing to see the migrants’ side of the story. That could be a recipe for indecision. It may also be a useful combination, because immigrant communities in marginal seats could decide the outcome in a closely fought general election.

Non-white voters do not have uniform political preferences but there is a clear pattern of mistrust of the Tories. There are Conservatives, mostly in urban constituencies with thin majorities, who see this as a long-term crisis for the party. Their concerns have been swept aside in the tactical dash to plug the leak of angry white votes to Ukip.

By contrast, Labour’s position – interpreted generously – is to focus on the causes of antiimmigrant feeling: low wages; a housing crisis that breeds resentment of foreign families in council properties; the skills shortage in an army of unemployed youth. Miliband’s aim, say his friends, is to move the conversation away from race and on to systemic failings in an economy that permits the routine exploitation of migrants and neglect of local labour forces.

That was the point the shadow immigration minister, Chris Bryant, tried to make in a speech on 12 August but the message was garbled. The intervention was erected on a platform of factual error, resulting in an overnight rewrite and a panicky retreat from attacks on corporate employers, encouraging the less generous interpretation of Labour’s position as an unprincipled shambles.

That is unfortunate, because Miliband’s nuanced line, treating immigration anxiety as a function of deep-rooted economic insecurity, deserves an airing. Britain is not a nasty country. Nor is it poised to instal a Ukip government, as more level-headed Tories can see. One Conservative backbencher, lamenting his party’s fringe obsession, recently told me: "People talk about Nigel Farage’s great charisma. Actually, I think a lot of people see him as a bit of a dick."

Westminster devotes more energy to decoding what goes on in the minds of the one in ten voters who might back Ukip than it does to understanding the larger number of people who know that Faragism isn’t the solution. There is in any society a bitter, defensive streak that can be brought out by fear and a generous side that thrives on trust. Britain’s immigration debate would look very different if ministers overcame their fear of the fringe and trusted voters with a more honest account of the country we have and the kind of country most of us want.

A van carrying the Home Office's message to illegal immigrants: 'Go home or face arrest.'

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

This article first appeared in the 19 August 2013 issue of the New Statesman, Why aren’t young people working

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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.