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Milburn believes the Tories have won a clear advantage by promising an annual limit for the number of asylum seekers and legal immigrants.
Tony Blair is “sympathetic” to adopting the Tory approach, having been advised that Labour can win the support of thousands of swing voters who say that the government is a “soft touch” on the issue.
The move is likely to be resisted by the Home Office, which has spent the past three years developing policies without putting a limit on numbers who can enter the country.
The row may delay the publication of the Home Office’s five-year plan, which is not expected until the new year.
The Tories have pledged to clamp down on “uncontrolled immigration” by adopting separate quotas for economic migrants and asylum seekers. They would use a points system, similar to Australia’s, ranking people’s skills and abilities.
A Whitehall source said: “Milburn thinks that this is one area where the Tories have the advantage. He knows there will be a backlash from the Labour party, but he believes that a row on the issue within the party could be helpful because it could ensure that the issue grabs the attention of swing voters.”
Last week Michael Howard, the Conservative leader, complained that Tony Blair had “stolen” Tory policies and “made it very difficult for people to distinguish them from us”.
Labour’s private opinion polls and focus groups have disclosed that the party needs to take a tougher stance on asylum and immigration. Swing voters believe that the government has not done enough to stem the tide.
A leaked internal party document shows most voters think the problem of asylum seekers has got worse under Labour.
A private briefing for Blair and senior Labour figures shows that 59% of people say the impact of asylum seekers has worsened, with only 21% saying it has improved.
The document shows nearly twice as many likely voters (59%) think the country generally is going in the wrong direction as those who believe things are going in the right direction (31%). Three years ago 51% believed Britain was heading in the right direction.
It also shows voters favour Labour on issues such as managing the economy, improving living standards and providing better schools and health services.
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