The UK won't become Europe's biggest economy if we slash immigration

The Tories are hailing the UK's projected growth while promoting policies that would strangle it.

Tory MPs are busy hailing what they regard as a late Christmas present: the news that the UK is forecast to become Europe's largest economy by 2030. According to the Centre for Economic and Business Research (CEBR), Britain will overtake France by 2018 and Germany within the next two decades, leaving it as the second biggest western economy after the US.

The response from the Conservatives could be summarised as "See? We told you George knows what he's doing!" But here's one point they're conveniently avoiding: Britain won't win the growth race unless it maintains a high rate of immigration. As the CEBR states, "positive demographics with continuing immigration" is the main factor (along with non-membership of the euro) behind the UK's projected success. While Germany's population is forecast to decline sharply over the next few decades, the UK's is expected to rise to 75 million by 2043, making it the biggest country in Europe.

That a significant part of this increase is expected to come through immigration helps explain why Britain will grow strongly. An OECD report last month, for instance, found that migrants make a net contribution of 1.02 per cent of GDP or £16.3bn, since they are younger and more economically active than the population in general. Far from being "benefit tourists", migrants contribute far more in taxes than they receive in welfare payments and public services. Of the 5.5 million people claiming working age benefits in February 2011, just 371,000 (6.4 per cent) were foreign nationals when they first arrived in the UK, meaning only 6.6 per cent of those born abroad receive benefits, compared to 16.6 per cent of UK nationals.

Were immigration to be cut to the level most Tories would like to see (little or none), growth would be dramatically reduced. According to NIESR, a halving of net migration over the period to 2060 would shrink GDP by 11 per cent and GDP per person by 2.7 per cent. This leaves the Tories with two options: they can either welcome immigrants as contributors to the economy, or they can turn them away and accept growth will suffer as a result. What they can't do (at least if they wish to retain any credibility), is to boast of our projected growth while promoting policies that would strangle it.

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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MPs should follow Emmanuel Macron's example and stand up to the far right

Where does a liberal centrist's victory fit into your narrative of inevitable decline? 

“Après le #Brexit, le printemps des peuples est inévitable !” wrote the far-right Front National leader Marine Le Pen, days after Brexit. Well, the blossom is on the trees, and Le Pen is through to the second round of the French presidential elections, so presumably we’re bang in the middle of that inevitable “people’s spring”. 

After all, a referendum that left Britain’s metropolitan elite weeping into their EU flags was swiftly followed by the complete overturning of US political and ethical traditions. Donald Trump defied polling and won the Presidency, all the while proclaiming he was “Mr Brexit”.  

Then, in December, the Italian Prime Minister Matteo Renzi held a referendum on constitutional changes and lost. Both Europhiles and Eurosceptics read the runes. Ukip’s on and off leader Nigel Farage crowed of 2016: “First we had the Brexit deliverance, then the Trump triumph, then the Italian rebellion. Democracy and the rebirth of the nation state!”

As this illustrates, the far-right want you to believe all these results are linked, and that they represent a popular, democratic movement. In the UK at least, the liberal left has drunk the English champagne. Labour is agonising over how to reconnect with “traditional” voters Ukip is apparently so in touch with – which don’t seem to include ethnic minorities, young people and those living in cities. Being “tough on immigration” is the answer to modern woes, and globalisation is a dirty word that can only represent multinational interests and not, say, cheaper food on the table. 

There are debates to be had about globalisation, of course, and the lingering impact of the 2008 financial crash, and the fact wages haven’t risen, and public services have been cut, and that in some northern towns, people from different ethnic backgrounds live segregated lives. But if the first round of the French presidential election can do us one favour, it’s to dispense with the narrative that there is something inevitable about the end of liberalism. 

Emmanuel Macron, an unapologetically pro-EU social, economic and political liberal, led the way in the first round of the French presidential election. The polls put him on course to become President.

If he wins, perhaps it’s time to revisit the narrative of decline. To remind ourselves that Hillary Clinton, now written off, won the popular vote in the United States, and among growing demographics of voters too. That a far-right  Austrian presidential candidate was defeated in 2016. That as recently as March, the Dutch mainstream prevailed against the far-right original Trump, Geert Wilders, and that the left-green leader Jesse Klaver enjoyed a surge instead. And that, although it’s now commonplace to assume Canada is just “nicer” in electing a liberal, Justin Trudeau, his party actually overturned nearly a decade of tar sands Conservative rule. 

Should liberals start to join these dots, voters should have the right to ask why both Labour and the Conservatives have jumped on the populists' bandwagon so eagerly. Why, among previously economically liberal Conservatives, are Nicky Morgan, Ken Clarke and Anna Soubry left as lone voices on the back benches. And why, in Labour, is patchy research linking depressed wages and immigration now exhalted as long-established fact? 

Liberalism may be out of fashion, but it’s not dead yet, as any of the Tory MPs in south-west marginal seats know too well. By the time Farage’s “independence day” on 24 June arrives, the narrative may have changed again. 

 

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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