Shadow home secretary Yvette Cooper speaks at the Labour conference in Brighton last year. Photograph: Getty Images.
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Labour's pledge to end restrictions on foreign students will increase its appeal to business

The party's promise to exclude overseas students from any future immigration target puts it on the right side of the economic argument.

David Cameron continues to proclaim his commitment to winning "the global race" and enabling Britain to maintain its international competitiveness. But rarely has there been a better example of the government doing the reverse than its treatment of foreign students.

Owing to the coalition's immigration restrictions, the number of overseas students has fallen for the first time in 29 years from 311,800 in 2011-12 to 307,205 in 2012-13 - Britain is strangling one of its greatest export industries. As well as a decline in EU student numbers from 23,440 to 17,890 (largely as a result of the tuition fees increase), the number of Indian students has fallen from 18,535 in 2010-11 to 10,235, and the number of Pakistani students has fallen from 4,580 to 2,825. In addition, foreign students are now required to find a job paying at least £20,600 within four months of graduating if they want to remain in the country, compared with a previous limit of two years. 

But while the Tories have refused to change course (despite the protestations of Boris Johnson and Vince Cable), Labour is promising to end this economic self-harm. In her speech today on immigration, Yvette Cooper will pledge to exclude students from any future government target. As she said on Today this morning, "we're in danger at the moment of having the worst of all worlds". Illegal immigration, which is not included in the coalition's cap is rising, while student numbers are falling. Cooper will say: 

As we’ve said, the last Labour government got things wrong on immigration We should have had transitional controls in place for Eastern Europe The figures were wrong, and migration was far greater than we expected. As a result the pace and scale of immigration was too great and it is right to bring it downAnd we should have recognised more quickly the impact on low skilled jobs, and the worries people had. 

But let’s be clear: this Government’s approach isn’t working either. David Cameron promised “no ifs no buts” that net migration would be cut to the tens of thousands. But he is failing to meet that target. And net migration has gone up in the latest figures by 60,000 to 210,000. At the same time illegal immigration – which isn’t included in their target – is getting worse. More people are absconding at the border, fewer are being caught and sent home, and the number of people here illegally is growing. Yet fee paying international students at our Universities – who are in their target – have fallen for the first time for 20 years, cutting the investment they bring into Britain. Exploitation of low skilled migrant labour by employers as a cheap option is getting worse. Yet top businesses are worried they can’t get the high skills they need The public are more concerned than ever – especially about the impact of EU migration

It’s the worst of all worlds

As well as excluding students from any overall target, Labour should also adopt a target for growth in their numbers, something Chuka Umunna has said he is "open" to. He said last year: "My big problem with the government at the moment in this area is that our HE sector, as a strong and vibrant export sector, has been taken hostage by the Home Office. And it has to stop. It is doing deep and immense damage. We cannot afford for that to happen to a leading export sector, in the context of our balance of trade deficit." 

Most Labour figures privately acknowledge that the party will struggle to attract significant support from business at the general election. But by promising to abandon the coalition's closed-door approach to immigration, and to maintain Britain's membership of the EU, it has put itself on the right side of the argument on two key enterprise issues. 

George Eaton is political editor of the New Statesman.

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Jeremy Corbyn's fans must learn the art of compromise

On both sides of the Atlantic, democracy is threatened by a post-truth world. 

Twenty years ago, as a new and enthusiastic Labour MP, I wrote an article for The Observer in praise of spin. I argued that if citizens are to be properly informed and engaged in their democracy, politicians - and in particular governments - have a duty to craft their messages carefully and communicate them cogently. It was a controversial notion then but less so now that we have entered the era of post-truth politics. In the old days, we used to "manage" the truth. Now we have abandoned it. 

We’ve probably come further than we think, for when truth is discarded, reason generally follows. Without a general acceptance of the broad "facts" of any matter, there can be little basis for rational debate nor, therefore, for either the consensus or the respectful disagreement which should emerge from it. Without a commitment to truth, we are free to choose and believe in our own facts and to despise the facts of others. We are free too to place our faith in leaders who make the impossible seem possible. 

We condemn the dictatorships which deny their citizens the right to informed and open debate. But in our own societies, unreasoned and often irrational politics are entering the mainstream. 

The politics of unreason

In the UK, the Leave campaign blithely wedded brazen falsehood to the fantasy that Brexit would cure all ills – and millions of voters enthusiastically suspended their disbelief.  “We want our country back” was a potent slogan - but no less vacuous than the pledge to “make America great again” on which Donald Trump has founded his election campaign. On both sides of the Atlantic, people want to take back control they know they never had nor ever will.

Both campaigns have deliberately bypassed rational argument. They play instead to the emotional response of angry people for whom reason no longer makes sense. Since the time of Plato and Aristotle, democracy’s critics have warned of the ease with which reason can be subverted and citizens seduced by the false oratory of charismatic leaders. Trump is just the latest in a long line of the demagogues they feared. He may not make it to the White House, but he has come a long way on unreasoning rhetoric - and where he leads, millions faithfully follow. He has boasted that he could commit murder on Fifth Avenue without losing votes and he may well be right.

But if Trump is extreme, he is not exceptional. He is a phenomenon of a populism of both right and left which has once more begun to challenge the principles of parliamentary democracy.

Democracy in decline

All over Europe and the United States, consumer-citizens are exasperated by democracy’s failure to meet their demands as fully and as fast as they expect. If the market can guarantee next day delivery, why can’t government? The low esteem in which elected politicians are held is only partly the consequence of their failings and failures. It is also evidence of a growing disenchantment with representative democracy itself. We do not trust our politicians to reflect our priorities. Perhaps we never did. But now we’re no longer prepared to acknowledge their unenviable duty to arbitrate between competing political, social and economic imperatives, nor ours to accept the compromises they reach - at least until the next election.

We have become protesters against rather than participants in our politics and, emboldened by hearing our chosen facts and beliefs reverberating around cyber space, have become increasingly polarised and uncompromising in our protest. 

The Trumpy Corbynites

Which brings us to Labour. Despite the obvious political differences between Jeremy Corbyn and Donald Trump, there are striking similarities in the movements which have coalesced around them. For many of their supporters, they can simply do no wrong; each criticism provides further evidence of a corrupt establishment’s conspiracy against them; rivals, including those who share many of their beliefs, are anathematised; unbelievers are pursued across the internet; inconvenient facts are reinterpreted or ignored; rational, civil debate is shut down or drowned out. 

There are other similarities in these insurgencies: both mistake slogans for policies and mass rallies for popular support; both are overwhelming and quite possibly destroying their own parties – and both, ultimately, are movements without practical purpose.

Trump may give vivid expression to his followers’ grievances but, other than building a wall along the Mexican border, his plans for government are obscure. Similarly, while Corbyn and his supporters know what they’re against, they have not yet articulated a clear vision of what they’re for, much less how it can be achieved. For many of them, it is enough to be "anti-Blairite". 

But in disassociating themselves from a Labour prime minister’s mistakes, they are also dismissing their party’s achievements under his leadership. Their refusal to acknowledge the need for compromise may well enable them to avoid the pitfalls of government. But government’s potential to bring about at least some of the change they want does not come without pitfalls. In wanting it all, they are likely to end up with nothing.

The art of compromise

Democracy cannot be sustained simply by what passionate people oppose. And though movements such as Momentum have important roles to play in influencing political parties, they cannot replace them. Their supporters want to be right - and they often are. But they are rarely prepared to test their principles against the practical business of government. The members of political parties want, or should want, to govern and are prepared, albeit reluctantly, to compromise – with each other, with those they seek to represent, with events -  in order to do so. Parties should listen to movements. But movements, if they are to have any practical purpose, must acknowledge that, for all its limitations, the point of politics is power.

We have to trust that the majority of American voters will reject Donald Trump. But closer to home, if Labour is to have a future as a political force, Corbyn’s supporters must learn to respect the historic purpose of the Labour party at least as much as they admire the high  principles of its current leader. There isn’t long for that realisation to take hold.

In the UK as in the US and elsewhere, we need to rediscover the importance of common cause and the art of compromise in forging it. The alternative is a form of politics which is not only post-truth, post-reason and post-purpose, but also post-democratic. 

Peter Bradley is a former MP and director of Speakers' Corner Trust, a UK charity which promotes free speech, public debate and active citizenship.