Labour’s migration plans do not convince
Sir Keir Starmer continues in his efforts to reconcile his party with its traditional voters who deserted in 2019. He has already made it clear that he would not press to rejoin the EU and reverse Brexit, despite trying hard to do so after the referendum. Now he is adamant that Labour will bear down on immigration even though the party presided over a big rise while in government.
Addressing the CBI, Sir Keir said the “era of cheap labour” had to end, which was no doubt a disappointment to business chiefs who would rather import employees from abroad than recruit at home. He is right: it does have to end and it should have done many years ago but was perpetuated by his own party and, perversely, by the trade unions.
For years they argued that mass immigration was not holding down wages or putting British workers out of a job by undercutting them. Labour was keen to bring in foreign workers to boost GDP and fuel growth. Many are still arguing that we need high levels of immigration to offset the worst of the recession and find staff for care homes and hospitals.
Brexit ended free movement of people from the EU and gave Britain control of its own borders, but it has not stopped immigration remaining at historically record levels. In the year ending June 2021, 573,000 people migrated into the UK and 334,000 people emigrated from it, leaving a net migration of 239,000 people.
Jeremy Hunt’s recent Autumn Statement was underpinned by forecasts from the Office for Budget Responsibility that anticipated immigration continuing at above 200,000 for the foreseeable future. The Chancellor’s calculations were based on that figure, which is why the Government is no longer wedded to the idea of reducing it to below 100,000.
Immigration was a big issue among Brexit voters in the Red Wall constituencies that defected to the Tories in 2019 and which Labour needs to win back. But although Sir Keir told business leaders they needed to wean themselves off cheap labour, he offered a “pragmatic” approach that “works better for the needs of business and recognises the need for skilled workers from abroad”.
Until businesses invest in home-grown staff and apprenticeships, tapping into a record number of working-age people who are not in employment, then governments – Labour or Tory – will continue to plunder the world for cheaper alternatives.