Chancellor Rachel Reeves is pushing for an EU youth migration deal as part of efforts to strengthen the UK economy and improve the public finances before the autumn Budget.
Speaking to The Times, Reeves described the proposed “youth experience visa” as “good for the economy, good for growth and good for business,” stressing that such a scheme could ease fiscal pressure and reduce the need for tax hikes or spending cuts.
EU Youth Mobility Scheme Under Negotiation
The UK agreed in May to explore a youth visa agreement with the EU, but details are still being finalized. The scheme would allow young people aged 18 to 30 to work and live in the UK for up to two years, without granting a permanent right to remain.
Reeves argued that the Office for Budget Responsibility (OBR) should include the potential economic benefits of the plan in its forecasts ahead of the November 26 Budget. The OBR previously downgraded UK growth by 4% following Brexit, and Reeves believes the new deal could provide a much-needed boost.
Conservatives Criticize Move as “Backdoor Free Movement”
Opposition parties, including the Conservatives and Reform UK, have criticized the youth migration proposal as a partial return to freedom of movement, which ended with Brexit.
However, Reeves pointed out that the UK already runs youth mobility schemes with 11 countries, including Australia, New Zealand, and Japan. In 2024, the UK issued just over 24,000 visas under these agreements, with participants allowed to stay between two and three years depending on their country of origin.
Economic Stakes High Ahead of Autumn Budget
The OBR will deliver its first forecast to the Treasury this Friday, with expectations of a long-term productivity downgrade that could leave a £20–30 billion annual gap in the public finances.
If the youth migration deal is included in OBR calculations, it could offset part of that gap, easing pressure on Reeves to raise taxes or cut spending. Labour has promised not to increase income tax, VAT, or National Insurance for working people, leaving the chancellor under pressure to find alternative ways to balance the books.
Reeves also highlighted other pro-growth measures, including new trade deals, to support the UK’s economic outlook. She said the government is determined to prove that targeted migration and international partnerships can boost growth without undermining Brexit commitments.
