Population Growth: Impact of Immigration

Natalie Elphicke Excerpts

Tuesday 27th June 2023 Westminster Hall

[Sir John Hayes]

My hon. Friend encourages me to digress, though within the scope of the matter before us. There is a macroeconomic lesson that needs to be taught to the Treasury and the Office for Budget Responsibility. There is a lazy assumption that increasing population is an automatic good for the economy. It is certainly true that an economy can be grown by those means, but that does not mean per capita growth. It means growth of an altogether cruder kind.

Moreover, the macroeconomic fact is that doing so displaces investment in recruitment, skills and modernising the economy. The economy is stultified in a high-labour mode. Britain’s chance to succeed and prosper in future is as a high-tech, high-skilled economy. Rather than displacing our attention, and subsequently policy and investment, in those skills, by recruiting labour from abroad, we should indeed look closely at the kind of economic future we want to build, and drive policy forward towards that future. My hon. Friend is right to draw attention to the myth that pervades the economic debate about migration.

I want to make two more points. One is on the likely future population. Experts estimate that the UK population could grow from 67 million to between 83 million and 87 million by 2046 if current immigration trends continue. Growth to 80 million-plus will result in the need to build between 6 million and 8 million more homes. That is equal to between 15 and 18 more cities the size of Birmingham by 2046. I do not say it lightly or blithely, but this is by far the greatest challenge facing the Government.

[Mrs Natalie Elphicke (Dover) (Con)]

I would like to expand on that very point and return to the issue of housing. My right hon. Friend might be interested to know of a visit I made to a housing development site in the midlands, where the vast majority of sales were to British national overseas people from Hong Kong, who were buying homes en masse on a development. When the development had been planned, it was not known that this migration route would be open, so the planners did not have that population level in mind. Does that not illustrate the challenges of long-term planning—how long it takes to build the homes we need—and show that the very quick changes in migration patterns have the impact he has described?

[Sir John Hayes]

I agree with my hon. Friend and pay tribute to her work in her constituency and more widely to highlight these issues.

To put this in perspective, if the UK continues to welcome the number of people we are admitting now, we would need to build 6.5 million more homes solely to cope with population growth over that period. Current immigration numbers require a home to be built in England every five minutes to meet skyrocketing demand. By contrast, even modest changes such as cutting net migration levels back to about 100,000 would help young people to get on the property ladder and prevent more of our countryside from being lost forever to house building.

Given the dramatically increased numbers of people coming here, driving immigration to levels never seen before in British history, urgent action must be taken. I look forward to hearing what action my right hon. Friend the Minister has in mind, but let me make some suggestions. Some work has been done already, due to the exceptional Home Secretary and Minister for Immigration that we are proud to have as members of the Government. The measures to limit master’s degree students bringing their dependants is welcome but insufficient. As I said at the time, it is odd—I will put it no more strongly—that those who are studying a taught master’s can no longer bring their dependants, but those who are studying a research master’s can.

Frankly, we need to be more bold altogether. We should raise the wage threshold for those entering the country on employment visas. We must look closely at the health service and the charges for accessing it—after all, it is a national, not international, health service. We need to focus on building domestic skills, as mentioned by my hon. Friend the Member for Bury North (James Daly), which would reduce the need to bring in people with skills that should be home-grown. We certainly need to look at the number of spouse visas issued and the criteria for issuing visas of that kind.

More than all of that, we need to recognise that people coming here can do an important job for us and welcome them accordingly, but they must know that they too will be disadvantaged if the infrastructure creaks to the point of breaking due to this unprecedented level of population growth.

The best way forward would be for the Government to take a holistic look at this challenge. My good friend Lord Hodgson of Astley Abbotts, in excellent paper he published through the think-tank Civitas, wrote of the need for an office for demographic change along the lines of the Office for Budget Responsibility. It would be missioned to establish proper evidence, provide expert advice and recommend actions for the Government and other agencies to deal with population change. It would set out long-term strategies to meet the needs that are inevitably the product of population growth. I would be interested to hear the Minister’s views on that very sensible idea.

We need to reduce the period that graduates can stay after completing their degrees from two years to about six months, and we must look again at the shortage occupations and skilled workers routes to ensure we are bringing people into the country only when strictly necessary and not allowing businesses to simply hire cheap labour. There is real evidence of declining working conditions. That point has been made very well by the shadow Minister, the hon. Member for Aberavon (Stephen Kinnock): working conditions, salaries and so on have been detrimentally affected because some of the people I described as greedy plutocrats—that was an understatement, by the way—would rather employ people on the cheap than do the right thing by their workers. I thought he made a strong case about that when he spoke about it recently in the House.

Disraeli also said:

“Man is not the creature of circumstances. Circumstances are the creatures of men.”

The prevailing circumstances this country faces in respect of population growth cannot be ignored any longer. We need leadership—I know my right hon. Friend the Minister is well placed to offer it—across the whole of Government because this affects every aspect of government. I have spoken about health, housing and infrastructure; I could have spoken about transport. Every time someone complains about roads and potholes —as they often do—they should know that every extra 10,000 or 100,000 people using the roads puts extra pressure on the infrastructure. I could pick almost every aspect of government—every Department. We need urgent action; otherwise, we will fragment our society, undermine our sense of shared belonging and alter our communities forever. More than that: we will not be able to sustain the good quality of life that British people rightly expect and want the Government to help them enjoy.