Wednesday 17 October 2018

Campaign response - Ask Chancellor Hammond to restore Migrant Impact Fund


I have recently received emails from constituents asking for my support to restore the Migration Impact Fund and increase its funding.

Immigration is an important subject to me. Leaving the EU gives us a once in a lifetime opportunity to build a fair, compassionate and sustainable immigration system to better address issues concerning the number of people entering this country, their impact on public services, as well as how well their integrate into local communities.

The Migration Impact Fund (MIF) was introduced by the Labour Government in 2009 to provide £35 million to local authorities every year. Its primary purpose was to alleviate the impacts of immigration on local services. In the light of the overall fiscal position and the need for urgent action to tackle the deficit, the Coalition Government withdrew the fund as a cost-saving measure in 2010. The principle to address effects of immigration however, remained an important one for the previous Government, and led my party to commit in the 2015 General Election manifesto to introducing a new Controlling Migration Fund (CMF) to replace the MIF.

In terms of funding, the CMF matches the MIF’s provision by providing £35 million of funding each year from 2016-2020 to local authorities to support the delivery of public services. Compared to the alternative models proposed by think tanks and policy commentators, the CMF also has more in common with the MIF in its design and scope. In addition, the CMF goes further by committing additional resources to enforcement and compliance officers in order to tackle the issue of illegal migration – an important issue that was not addressed by either the CMF or the previous Labour Government.

I am therefore of the view that restoring the CMF with a new version of MIF, which is in itself a replacement and an improvement on the original MIF, would not serve any meaningful purpose. Far from restoring the public’s trust in the immigration system, it would distract the important work that the Government is already doing in reviewing our immigration arrangements, based on the recommendations of the Migration Advisory Committee, to ensure that the system is fit for purpose after Brexit. Any substantial increase in government funding for the CMF would be offset by an increase in taxation to balance the books, which would affect migrants working hard to make a living for themselves and look after their families.

Instead, a better way to restore trust in the system for government officials to work with local people in enabling more migrants to find employment, education and training, in order to contribute towards our public services and become fully integrated members of our society. To this end, the Government is already committing a new £7 million Integrated Communities Innovation Fund to help encourage local led innovative projects to tackle local needs in integration, and a number of local authorities across England have already signed up to this ambitious project.