There’s a crucial line in the government’s immigration white paper which admits its preferred options – a minimum salary threshold and high skill demands – would hit the economy.
On page 111, in a rare passage that exposes the benefits of
freedom of movement, the document says that by imposing a ‘salary threshold and
skills threshold…. that GDP is likely to be lower than it would have been under
free movement’. The government is pursuing a policy which it knows is likely to
make all UK inhabitants financially worse off.
Apparently, despite this cost and the criticism coming from all
sides, freedom of movement is still worth dumping.
The government sees immigration as one of its trump cards. It believes
that taking a tough stance on the matter wins it votes. They have made the
judgement that it is worth all the negative headlines, the repeated and very
vocal concerns from business especially over the salary threshold just to
appear robust.
Throughout her time in government Theresa May has stubbornly
resisted any attempt to soften the policy. That it has failed year after year
is of no consequence to her.
But, what actually has been promised?
The current cap on the number of skilled workers such as doctors
or engineers will be scrapped.
Low skilled workers will continue to be allowed in for a year
until 2025, in an attempt to soften the blow for industries that rely on cheap
labour.
The government says it wants its new system phased in from 2021.
Surely this is highly improbable; I cannot remember the last time a major and
complicated logistical project, which will undoubtedly require new IT and data
provisions was delivered either on time or on budget.
Bizarrely, the government also cannot decide whether or not Mrs
May’s never achieved target of reducing net migration annually to the tens of
thousands is still in place. The Prime Minister insists it is but the Home
Secretary has repeatedly refused to endorse it preferring instead to say net
migration will come down to sustainable levels. It may well prove that
sustainable levels are not too dissimilar from current levels.
The key aspect here is the government is clearly severely
divided over a minimum salary threshold of £30,000. Several ministers,
reportedly led by chancellor Philip Hammond, are opposed to the cap, thinking
it far too high and they have the backing of business. The home secretary likes to frame the policy around being skill based, but an awful lot of people with skills earn under £30,000.
Rather than resolve the matter, it has been punted into the long
grass, by promising a consultation. Doesn’t the long grass hide a lot of things
these days?
It is this division that has delayed the White Paper so drastically;
it was supposed to be published in the summer of 2017. Clearly, ministers were
keen to get it published as soon as possible, partly to come before the
meaningful vote takes place on Theresa May’s Brexit deal, but with the Brexit
clock ticking, demands for it were deafening.
Even as late as yesterday, it was unclear if it would emerge
today. It was only confirmed by an email from the Home Office at 7.33pm last
night and the trail, with embargoed comments from Sajid Javid didn’t arrive
until in my inbox until 7.51pm.
When I interviewed the home secretary a few months ago, Mr Javid
described leaving the European Union as a ‘unique, once in a generation opportunity, to
completely redesign our immigration system’. He added: ‘I’m in a privileged
position to be able to do that.’
What has been produced so far, however, is little more than a
wish list. With the fate of Brexit, and all its variables and implications, still
unknown, this has the benefit of inbuilt pragmatism and flexibility – ‘sustainable
levels’ can mean almost anything after all. The promise of stricter – and lower
– immigration remains a political ploy to please Conservative voters; in
reality, it may prove to be a mirage.
Details of the government's white paper on immigration can be found here