Osborne's Chinese visa move shows Tory contradictions on immigration

While trumpeting greater immigration as an economic good in the case of China, ministers are strangling it elsewhere.

A casual observer of the government's actions in the last week could be forgiven for asking whether it believes greater immigration is a good or bad thing. Last Thursday, Theresa May published the Immigration Bill, aimed at creating a "hostile environment" for illegal migrants (many of whom have merely overstayed their visas) but also at burdening legal migrants with new rules and regulations such as a £200 charge to use the NHS. 

But today George Osborne is trumpeting plans to introduce a new visa system making it easier for Chinese business leaders and tourists to visit the UK and to work and study here. In the future, rather than applying for UK visas, Chinese travel agents will only be required to submit the EU’s Schengen visa form (an irony not lost on the government's europhile critics). In addition, ministers will introduce a new 24 hour "super priority" visa service from next summer. The Treasury press release notes that "Chinese students make up the largest group of foreign nationals in UK schools and universities. The UK is also the number one destination for Chinese investment in Europe, attracting nearly £2 billion in the last year alone and more than 600 Chinese businesses who now have a presence in the UK."

The government's clear (and correct) conclusion, on this occasion, is that immigration is an economic good and should be encouraged. But this judgement is entirely at odds with its decision to impose an immigration cap aimed at reducing migration to "tens of thousands" a year. In response to the Chinese visa announcement, Theresa May boasted that "we are continuing to attract the brightest and best to work and study in the UK, while preventing immigration abuse and bringing net migration down to the tens of thousands". But the facts show the former aim is contradicted by the latter.

The reduction in immigration since 2010 has largely been driven by a fall in the number of foreign students, with 56,000 fewer entering the UK (a 23% drop) in the year to September 2012, a decline forecast to have cost the economy £725m (the sector is worth an estimated £8bn).

David Cameron claims that the government has merely "shut down the bogus colleges that were a front for illegal immigration", but the figures show genuine students are being excluded. While visas issued to university students increased by 5% in the year to March 2013, there was a 46% decline in the number issued through further education colleges and English language schools (which act as large feeder institutions to universities) and a 7% decline in those issued by private schools. As Jo Beall, the British Council director for education and society, has noted, "Many students use these courses as a step towards applying to our universities, so it presents a long-term risk if we diminish what was a big recruitment pool of students who had already chosen to study in the UK".  

With ministers unable to restrict EU immigration (unless they leave the club altogether), their only option is to squeeze non-EU migration as hard as it can and that means closing the door to thousands of would-be students (including many from China). Richard Lambert, the Chancellor of Warwick University and the former head of the CBI, has written of how "The UK Border Agency is putting intense pressure on several institutions, including well-run ones, where vice-chancellors claim they are having to account for their international students’ whereabouts almost in real time."

China's status as the world's emerging economic hegemon means the government is relaxed about making the case for greater migration from it. But it cannot do so and simultaneously maintain that its dogmatic immigration cap is not strangling growth. 

George Osborne delivers a speech at Peking University in Beijing earlier today. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Felipe Araujo
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Hull revisited: What happens when a Brexit stronghold becomes City of Culture?

We report from Hull, to find out if you can replace the kind of nostalgia that led to a Leave vote with cultural investment.

At 75 metres long, the offshore wind turbine blade erected across Queen Victoria Square, in the heart of Hull, is a sculpture intended to mark a new chapter in the city’s history. For the next 12 months, Hull, a city of more than a quarter of a million people in the northeast of England, will be the UK’s City of Culture.

The 28-tonne blade hails from the local Siemens plant. The German technology company employs around 1,000 people in the area, making it Hull’s biggest single employer.

Seen up close in this context – laid dormant in the middle of a town square instead of spinning up in the air generating energy – the structure is meant to remind passersby of a giant sea creature. It is also, I’m told, an allusion to Hull’s rich maritime history.


All photos: Felipe Araujo

Nostalgia is a big thing in this part of the country. At one point, Hull was the UK’s third largest port but technology and privatisation drastically changed that. The battle over cod fishing with Iceland in the waters of the North Sea 40 years ago has also dealt a major blow to a region with a long and proud trawling tradition.

People here still talk about a bygone era when the fishing industry provided jobs for everyone and there was enough money to go around.

Fast forward to 2017, and the country’s new capital of culture is the same city that voted 67 per cent in favour of leaving the EU last June. Its new-found prestige, it seems, is not enough to erase years of neglect by a political class “too busy for commoners like us”, as one resident puts it.

“More than a message to Brussels, it [the Brexit vote] was a message to Westminster,” Paul Leeson-Taylor, a filmmaker born and bred in Hull, tells me. “For the first time in a long time people in Hull felt like they had the chance to change something, and they took it.”

But while speaking to people on the high street and hanging out with locals at the Community Boxing Club in Orchard Park, one of the city’s most deprived areas, there is one word that consistently popped up in conversation – more than any specific policy from Westminster or the much-hated rules “dictated” by Brussels. Foreigners.

According to official figures, Hull’s population is 89.1 per cent white British. Still, immigration is big on people’s minds here.

During my two-day stay in the city, I find myself being the only black person in most places I visit – I’m certainly the only black guy at the boxing club. So when someone begins a sentence with “I’m not racist but…”, I know a tirade on immigrants is about to ensue.

“There are just too many of them,” Nick Beach, an estate agent whose Polish clientele is a big part of his business, tells me as he is about to teach a boxing class to local children. Beach was born in Shepherd’s Bush, in West London, but has been living in Hull for the last 20 years.

“When I go down there these days and go into Westfield shopping centre, it is very rare you get an English person serving you now,” he says. “I just find it disappointing that you go into your capital city and you are a minority there.”

These are the much-discussed “left behind”, a white working-class community that has gained particular prominence in a time of Brexit and Donald Trump. Under economic pressure and facing social change, they want to have their say in running a country they claim to no longer recognise.

For Professor Simon Lee, a senior politics lecturer at the University of Hull, immigration is only a superficial layer when it comes to explaining the resentment I witness here. For him, the loss of the empire 70 years ago is still something that as a country Britain hasn’t come to terms with.

“The reason for us to be together as a United Kingdom has gone, so what is the project?”

As destiny would have it, a foreign company will now play a major role on Hull’s economic future, at least in the short term. In the wake of the Brexit vote, there were widespread fears Siemens would pull out of the region and take its factory elsewhere. With the massive blade looming large in the background, Jason Speedy, director of the blade factory in Hull, assures me that isn’t the case.

“The Brexit decision has made no difference. We have made our investment decision, so Siemens, together with the Association of British Ports, has put in £310m. It’s all full steam ahead.”

As Hull becomes the country’s cultural hub for the next few months, the hope is that its residents stop looking back and start looking forward.

For Professor Lee, though, until there is a complete change in the power structures that run the country, the north-south divide will remain – with or without the EU. “The way you kill nostalgia is to have something new,” he said. “The reason why people here are nostalgic is because there is nothing to replace it with.”

Felipe Araujo is a freelance journalist based in London. He writes about race, culture and sports. He covered the Rio Olympics and Paralympics on the ground for the New Statesman. He tweets @felipethejourno.