Firms lash out at government over migration
BUSINESS leaders have accused the government of holding British firms back after a Conservative minister called for tighter immigration controls, despite a new report which contradicts his claims.
In a speech yesterday immigration minister James Brokenshire said the government is sticking to its target of cutting net migration to the tens of thousands by 2015, adding that immigration causes British workers to lose out on jobs.
But business leaders hit back, warning that immigration curbs will harm UK companies desperate to take on skilled workers as the economy grows.
The director general of the Institute of Directors, Simon Walker, accused the government of “feeble and pathetic” political positioning, adding: “The UK is an open, trading country that benefits from the skills and ideas of migrants.
“We will not become more prosperous by closing our borders to talented individuals and entrepreneurs from across the world.”
A report published yesterday by the Home Office, which the government is believed to have delayed, concludes that immigration does not have a detrimental impact on the UK labour market despite Conservative ministers frequently claiming that it does, in order to justify increasingly tough immigration controls.
The British Chambers of Commerce also lashed out at Brokenshire, with executive director of policy Adam Marshall saying politicians should base policy on “evidence not ideology.”
“The answer to the UK’s migration conundrum lies in improving skills and training, rather than an arbitrary clamp-down,” he added.
And in a speech in the City last night business secretary Vince Cable appeared to back industry leaders, telling the audience that he is “intensely relaxed” about immigration as long as workers are skilled. “Lower the temperature of the immigration debate and we can create greater room to discuss the more significant, more challenging and more provocative issues around skills. That is where our long-term interests really lie,” he said.
The report did conclude that some short-term impact on jobs occurs when the economy is in recession, adding: “Displacement effects are also more likely to be identified in periods when net migration volumes are high, rather than when volumes are low.”
In his first speech as immigration minister, Brokenshire said uncontrolled immigration “can force wages down and house prices up and put pressure on social cohesion and public services. Downing Street denied that the report had been pushed back over fears it would undermine its stance on cutting net migration.
IMMIGRATION REPORT:
■ Found “relatively little evidence” that immigration displaces UK workers in strong economic times.
■ There was a small impact in recent years when the UK was in recession. Yet the effect is “likely to dissipate”.
■ Labour market “adjusts to increased net migration when economic conditions are good,” according to research. This happens more slowly during a recession.