City Matters: Put the immigration debate on a factual footing – or our economy will suffer
EUROPE is back in the headlines, with immigration and David Cameron’s meeting with French President Francois Hollande pushing the politically-divisive issue to the top of the agenda. We regularly read that European immigration and new EU regulation are a problem. But if we are to secure the best future for the UK, we must accurately examine the facts, not base policy on emotion.
This is why the government’s review of the EU’s balance of competences is an important exercise. Only an in-depth, factual analysis of what EU membership means for the UK can prove the credibility of the arguments in this debate.
This is the approach that the International Regulatory Strategy Group – an advisory body to Canada Corporation and TheCityUK – has taken with its submission to the balance of competences review. Recent surveys of business leaders have shown that the majority supports the UK’s membership of the EU and believes that access to the Single Market is essential to the UK’s competitiveness. JP Morgan, for example, has voiced its concerns over the potential impact of the UK leaving the EU.
An authoritative Confederation of British Industry report concluded that “the benefits of EU membership to British business have significantly outweighed the costs”. This conclusion was based on extensive consultation with its members. One survey has shown that 78 per cent of businesses support the UK staying as a member of the EU (the proportion was similar between big business and SMEs). TheCityUK’s survey of financial services business leaders showed 84 per cent wanted the UK to remain an EU member and 95 per cent said that Single Market access is crucial to the UK’s future competitiveness.
Migration forms a key part of this debate. UK businesses greatly benefit from the ability to employ skilled staff from across the EU. This ability to attract a diverse workforce gives businesses access to global knowledge, familiarity with business and regulatory cultures, linguistic skills and networks across the world. These are vital to ensuring the success of UK companies. We need more light, and less heat, when it comes to examining the effects of migration within the EU. Otherwise there could be serious consequences for UK competitiveness.
Of course, this does not mean businesses should feel unconditionally supportive of the EU. It is widely recognised that significant reform in Europe is imperative to facilitate growth and job creation across the economy. Businesses want to see more open international capital markets and a genuine push to complete the Single Market, while better impact assessments and a stronger consultation process would improve the European legislative process.
So the view from the City is clear. The balance of competences between the UK and the EU is broadly correct, while skilled migration is also crucial to the UK’s ongoing success. The Single Market doesn’t just provide new people to sell our products to, and new companies to buy from; it also provides us with workers with specialised local knowledge who can help companies expand internationally. For the UK to get the most out of all this, it must be fully engaged in the EU policymaking process.
Mark Boleat is policy chairman of Canada Corporation.