Support 100 years of independent journalism.

  1. Business
  2. /
  3. Economics
  4. /
6 October 2015

Why Theresa May is wrong about immigration

The inconvenient truth: migration helps Britain.

By Tim Wigmore

Immigration is a disaster. Well, Theresa May says so, anyway.

May’s speech to the Conservative conference is straight out of the Ukip playbook – which is rather curious, given that she has held the post of Home Secretary for five years, and is the longest-serving holder of the office for half a century. It is crass and expedient tub-thumping (as James Kirkup has brilliantly exposed). And what May is saying is not even true. These are saloon-bar claims, and it is striking that she should unleash them on the Conservative party conference.

“When immigration is too high, when the pace of change is too fast, it’s impossible to build a cohesive society,” May says. Yet, whatever she might say, racism is on the decline. The BNP’s vote in the general election collapsed from 563,000 in 2010 to just 1,667 in 2015. Research by Rob Ford has revealed that the nation is becoming far more tolerant to marriage between races: while almost half of those born before 1950 oppose marriage between black and white people, only 14 per cent of those born since 1980 do. And between 2011 and 2014 (when the figure was last measured), the British Social Attitudes Survey reported a decrease in self-reported racial prejudice, from 38 to 30 per cent.

May also said: “at best the net economic and fiscal effect of high immigration is close to zero.” This is another claim that does not stand up. An OECD study two years ago found that the net contribution of immigrants is worth over £7bn per year to UK PLC: money that would otherwise have to be found through higher taxes, lower spending or more borrowing.

May also asserted that “We know that for people in low-paid jobs, wages are forced down even further while some people are forced out of work altogether.” This ignores the evidence of her own department, who have found “relatively little evidence that migration has caused statistically significant displacement of UK natives from the labour market in periods when the economy is strong.” An LSE study, too, has found “no evidence of an overall negative impact of immigration on jobs, wages, housing or the crowding out of public services.”

Sign up for The New Statesman’s newsletters Tick the boxes of the newsletters you would like to receive. Quick and essential guide to domestic and global politics from the New Statesman's politics team. The best of the New Statesman, delivered to your inbox every weekday morning. The New Statesman’s global affairs newsletter, every Monday and Friday. A handy, three-minute glance at the week ahead in companies, markets, regulation and investment, landing in your inbox every Monday morning. Our weekly culture newsletter – from books and art to pop culture and memes – sent every Friday. A weekly round-up of some of the best articles featured in the most recent issue of the New Statesman, sent each Saturday. A weekly dig into the New Statesman’s archive of over 100 years of stellar and influential journalism, sent each Wednesday. Sign up to receive information regarding NS events, subscription offers & product updates.
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy

The inconvenient truth is that rising net migration is both proof of, and a reason why, the UK economy is doing well. As immigration has increased, so has growth; employment has risen, including for Britons. This is no coincidence.

To win the “global race”, a country needs to attract skilled immigrants who work hard and put in more than they take out. That is exactly what the UK is doing: net migration has just risen to 330,000, a new record. As a whole these migrants “are better educated and younger than their UK-born counterparts”, as an LSE study has found. In the UK today there is a simple rule: where immigration is highest, growth is strongest. The East Coast and Cornwall suffer from a lack of migration, while almost 40 per cent of a immigrants live in the thriving capital.

Lower immigration would make the UK a less dynamic economy. Firms in London enjoy a “diversity bonus”: those with an ethnically diverse management are more likely to introduce new product innovations, and are better-able to reach international markets, a paper by Max Nathan and Neil Lee has found.

Puling up the drawbridge on immigration would have catastrophic consequences for UK PLC. The OBR have found that with zero net-migration, public sector net debt as a share of GDP could rise to 145 per cent by 2062/63; with high net-migration, it would fall to 73 per cent.

So May should be celebrating that the UK is such an attractive place to live, and how immigration has contributed to its success. By doing the opposite, she not only shows a lack of political leadership, but is also stoking up trouble for the Prime Minister – and her leadership rival George Osborne – during the EU referendum.