Sat, 27 Sep 2025
The chancellor calls for an 'ambitious' deal as she looks to boost growth ahead of the 26 November Budget.
Labour's Chancellor Rachel Reeves has proposed an ambitious youth migration deal with the EU, aiming to boost public finances ahead of the autumn Budget. The plan includes an exchange scheme for young workers, which would allow those aged 18-30 to stay in the UK for two or three years.
The UK and EU agreed to work towards a "youth experience visa" in May, but negotiations are ongoing. The specifics of the scheme are still being discussed, including the number of visas that could be issued annually.
Reeves wants the Office of Budget Responsibility (OBR) to factor the potential economic benefits of the scheme into its forecasts, which would help reduce the need for spending cuts or tax rises. The OBR previously scored UK growth down by 4% due to the original Brexit deal and Reeves believes that this sets a precedent.
The proposed scheme has been criticized by some Conservatives and Reform UK, who say it amounts to a partial return to freedom of movement. However, Reeves claims that the scheme would be "good for the economy, good for growth, and good for business".
The OBR will send its first economic forecast to the Treasury on Friday, which will include the gap the Chancellor needs to make up in her 26 November Budget. The gap could be £20 or £30 billion per year.
Liberal Democrat Europe spokesperson James MacCleary has called on the government to take firm action to bring revenue to the exchequer, saying that they are "moving far too slowly".
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