#11 Inside Labour: A fair migration system that works for our economy
For years, politicians have made big promises about immigration but failed to deliver.
The Conservatives told us they would meet a cap of 100,000. Then they said that Brexit would give us control of our borders.
In reality, 2023 saw net migration reach 904,000 - the highest in British history.
Labour has committed to doing things differently, with a migration system that puts Britain’s economic self-interest first.
A different approach
At Labour Together we published a report which argued that an Australian-style National Migration Plan could tackle the problem of reducing the number of migrants coming to the UK while ensuring that Britain’s economy gets the contributions it needs.
The public is united in reducing migration. On the left, a plurality of Green voters want to see net migration come down substantially. On the right, even Reform voters would rather see visas issued to sustain our social care sector if the alternative is taxes going up.
The public has long been clear. They want lower net migration despite being clear-eyed about the positive benefits of some level of migration.
Rather than a tokenistic net migration target, an Australian-style Plan would set credible, long-term targets that lead to sustained reductions in immigration while ensuring that Britain’s economic needs are met.
‘A Migration System That Puts Country First’ outlines how this Plan could have the following features, and be debated annually in parliament at a Budget-style event:
A multi-year banded target for different migration routes and visas
A clear assessment of the benefits and costs of migration, for the economy, public services and infrastructure
An emergency brake should numbers look set to exceed the overall total migration target
This kind of Budget-style event would allow the government to explain how targets will be met and why the migration plan helps deliver on voters’ biggest priorities: economic growth that boosts incomes and the NHS.
What a National Migration Plan would look like
The Plan would be complemented by Labour’s long-term strategies for getting Britain working and upskilling the nation.
A structured process for migration policy and decision-making. The Home Secretary alongside the Chancellor and the Cabinet Office would own a cross-government process leading up to the National Migration Plan, with support from the Migration Advisory Committee and other labour market analysts to set the current labour supply needs for the whole economy.
The Prime Minister would agree with the Home Secretary on the headline objectives of the Migration Plan, setting the expectation that economic migration should be demonstrably in the country’s national economic interest. Departments would also be invited to make representations on behalf of services and sectors.
Setting a specific plan. The government would set out a range it is targeting for different migration types, over the short and long term, based on its wider economic and skills strategy.
Alongside setting out the changes to skill and salary thresholds in the immigration system, it would explain what it is doing to make that reduction in migration sustainable - through bursaries or training places in health, or tweaks to the points-based system to support shortage sectors in the economy.
This mechanism would allow the government to set out how its wider labour market strategy will lead to lower migration over the long term and give the government accountability for progress against the plan.
Much more rigorous cost/benefit analysis. In addition to setting out the fiscal impacts, the government can be clear about how different routes are contributing to its priorities: supporting growth sectors in the industrial strategy, helping the government to cut waiting lists in the NHS, or supporting the higher education system through overseas students.
A government that designs a migration system so that it serves the country’s economic interests should be ruthless in identifying areas of migration which do not pass that test.
Owning this debate in Parliament. The government would set out its expectations for what labour supply the country needs in what areas. This plan could be debated in Parliament.
The government would level with the public. It would look at the analysis and make a judgement: what is best for Britain’s economic interests? Labour can be the government that takes migration trade-offs seriously and convinces the public of a way forward.
An emergency brake if numbers look set to exceed overall targets. The paper recommends a multi-year planning target, which the Australian government is currently moving towards, rather than a fixed cap.
The Plan would include mechanisms for dealing with unforeseen changes in demand and circumstance, including having a debate in Parliament should the multi-year envelope look set to be exceeded, and allowing for discretionary rule changes for certain routes to ensure migration is within the envelope set.
A Fair and Controlled System
Where populists seek division, there is remarkable nuance and agreement on legal migration.
A National Migration Plan offers one way that immigration policy can be firmly rooted in Britain’s economic self-interest while ensuring we can still attract the very best talent from around the world.
Jonathan Ashworth
Chief Executive, Labour Together
In case you missed it
A migration system that puts country first | Labour has committed to reducing migration. There are various ways this can be achieved. This paper sets out one way an Australian-style National Migration Plan could work. This is the best answer we have seen to the problem of how to reduce numbers while making sure Britain’s economy gets the contributions it needs.
Public Service Reform and Devolution | This report from October, by Sam Freedman, sets out how empowering mayors with greater oversight of the health, education, criminal justice and other public service systems, could help Labour deliver its public services mission. JP Spencer, Director of Devolution Policy at Labour Together, writes a foreword.
