The Tory plan to deport foreign students risks damaging our economy

The Home Secretary’s plan to deport foreign students at the end of their studies in the UK is just the latest Tory policy that could contribute to undermining our position as a leading economy in the world.

The plan calls for the Tories to make a manifesto commitment to force students from outside the EU to leave the UK, and then apply for a new visa from abroad, once they have completed their degree. 

The announcement has led to an immediate backlash from universities, scientists, academics, the private sector, and simply everyone interested in promoting a strong British economy, fit for business in a globalised, highly-competitive environment. Sir James Dyson, the inventor and business leader, is the latest high-profile and well-informed voice to condemn the plans.  In a Guardian interview at the weekend, Sir James Dyson accused the Home Secretary of creating a “short-term vote winner that leads to long-term economic decline”.  This direct and harsh critique, with its warning of economic decline, underlines the importance of standing up against such a poorly devised policy. 

This is also particularly important, given that this policy could, by proxy, also have a detrimental impact on, and tarnish the reputation of, UK education exports, estimated to contribute £14 billion to the UK economy each year – according to 2013 Home Office figures.  We also know, from critical reports in the Indian press, for example, that the new policy has projected a closed-off and inhospitable impression to the rest of the world, in respect of our educational institutions.

So, why this policy, and why now? It’s difficult to discern whether the policy is intended to target voters for the General Election 2015, or the probable Tory leadership contest later this year.  Either way, it exudes pure political guile, for the purposes of winning votes, rather than careful consideration of what is best for the UK economy.

The previous notable episode, during which the Tories demonstrated a disregard for UK economic interests, concerned the backlash against the Tories’ EU exit plans.  Again, the promise of an EU referendum makes a sound bite for a Government flailing in its own ineffectiveness, desperate to scrap home a majority in this year’s General Election, but it’s certainly not one based on economic prudence.  In fact, one of the key consequences of that policy was to trigger a significant lack of confidence within the business community with regard to Tory vision and credibility.  Business leaders, reacting with opposition to the proposals, were then warned by Tory MP, John Redwood, not to stand in the way of an EU exit.  This simply loaded fuel on the fire.

Whilst the Home Secretary is perhaps unlikely to launch a counter-attack against the likes of Sir James Dyson, it’s still a worrying sign of what we can expect by way of Government policy if there were to be a Tory majority after May.     

One of the inferences that could be drawn from the Tories’ lack of interest in what is best for the economy is perhaps complacency, bordering on arrogance, in respect of the party’s relationship with the business community.  There is an assumption within the Tory party that they can take business support for granted, regardless of policies.  This latest debacle, coupled with the on-going mistrust of the Tories in relation to their EU exit plans, shows that the complacency is misjudged.  It conveys the impression that the Tories may actually have an underlying problem with British business.

In sharp contrast, the Labour front-bench is focusing on what really matters: jobs, growth, and an economy that works for the many, and not just the few.  Importantly, we don’t see the Shadow Home Secretary talking about immigration in a way that would damage national interests, instead she focuses, reasonably and fairly, on the fact that more does need to be done to stop people overstaying illegally when their visas run out, whilst arguing that the answer isn’t to prevent highly skilled overseas graduates getting legal work visas to fill shortages in fields like science or medicine.  Rightly, the emphasis is on cracking down on illegal working, bringing in proper exit checks, and recruiting a thousand more borders staff – to make sure visas are properly enforced.  It’s sensible, measured policies like this, which will contribute to a strong recovery that benefits the country as whole, for the long-term.

Charles Smith is Labour’s parliamentary candidate for Maidenhead