Labour’s immigration row has erupted into a wider dispute over the economy, overshadowing Andy Burnham’s first party conference as Prime Minister, which begins in Liverpool on Sunday.
Cabinet ministers have clashed over plans to make it harder for migrants to secure permanent residence in the UK, while former business secretary Peter Kyle has criticised the Government for failing to move quickly enough to deliver economic growth.
The public divisions have put pressure on Mr Burnham before the conference, which was intended to showcase his leadership. Angela Rayner renewed her opposition to Home Secretary Shabana Mahmood’s proposed visa reforms, despite Cabinet colleague Lisa Nandy publicly backing the plans.
Ms Rayner has argued that the reforms would “change the goalposts” for people already living and working in Britain, particularly those employed in social care. Under the proposals, new arrivals could have to wait ten or even 15 years for indefinite leave to remain, rather than the current five.
One Labour MP described the intervention as a “drive-by shooting”, while a senior party official said: “It’s quite mad she’s chosen this moment to attack.” Another MP suggested that Mr Burnham should remind Ms Rayner of “the benefits of keeping her mouth closed”.
Labour immigration row deepens before conference
Ms Nandy, the Culture Secretary, defended Ms Mahmood during an interview on Radio 4’s Today programme. She said the Home Secretary was “taking great care” over the issue and had “the support of the Cabinet in doing so”.
Former deputy prime minister Ms Rayner has received support from Tony Vaughan, the Labour MP for Folkestone. He said it was wrong for health and social care workers who had come to Britain to care for others to face a possible 15-year wait for settlement.
“It is economically and morally wrong and will damage our health and social care system,” he said.
Labour peer Lord Glasman, who founded the party’s Blue Labour movement, called for ministers to observe collective responsibility and said Ms Mahmood’s approach was the correct one.
“People are rightfully concerned about illegal migration as well as the scale of legal migration,” he said. “This government’s fate lies in whether it has the courage to confront that.”
Privately, however, some Labour figures questioned whether Mr Burnham would support the Home Secretary’s reforms. One insider said the Prime Minister appeared “utterly confused”.
The dispute prompted a political attack from Conservative leader Kemi Badenoch, who asked how Mr Burnham’s Cabinet could be trusted to stop small-boat crossings if ministers were already divided over changes to the immigration system.
A separate disagreement has opened over the Government’s economic strategy, with Mr Kyle calling for a greater sense of urgency. He said Labour had inherited a “growth emergency” from the Conservatives, but that the emergency remained two years later.
Mr Kyle, a close ally of former prime minister Sir Keir Starmer, said the Government should consider delaying the expansion of workers’ rights if doing so would help strengthen the economy in the short term.
“We might need to look and have honest conversations with unions about how we sequence some of the rights… to make sure that we get growth into the economy in the shorter term,” he said.
He compared the economy to a car travelling on a motorway in the right direction but at only 30mph, asking: “Why wouldn’t we put our foot down and get there quicker?”
His intervention has fuelled criticism from Labour figures who believe the Government is allowing union demands to take precedence over growth. Some party sources have claimed that Mr Burnham lacks the resolve to resist pressure to “spend, spend, spend”.
The Government’s plans for Heathrow have also suffered a setback, with the proposed third runway now likely to be delayed until 2039, four years later than originally planned.
Amid the disputes, Labour insiders have claimed that Mr Burnham is still considering a snap election, despite suggestions that he had “bottled it”. They have also described his promised ten-year plan as a possible “Trojan horse” for a future manifesto.
Up to 100 MPs are said to have joined a new group led by former minister Darren Jones. The group is reportedly ready to challenge Mr Burnham if his leadership falters.
The Prime Minister sought to shift the focus back to domestic policy on Saturday night by announcing a planned equity loan scheme for first-time buyers in October’s Budget.
The proposal would allow buyers of new-build homes to put down a deposit of 2.5 per cent, with the Government providing a 20 per cent equity loan. Labour said the scheme would be funded by reprioritising existing budgets.
On an average first-time home costing £230,000, the plan would mean a deposit of £5,750 and access to an equity loan of up to £46,000.
