Reeves floats ambitious EU youth migration deal to boost economy

London — Chancellor Rachel Reeves on Sunday outlined an 'ambitious' youth migration deal with the European Union that would let 18- to 30-year-olds live and work in Britain for two years, without a path to permanent residence. Young people from the UK would similarly be able to work, study and live in the EU for a limited time. Reeves spoke to The Times ahead of Labour's conference in Liverpool this weekend.

The plan is pitched as beneficial for the economy, growth and business, with Reeves saying it could help deepen UK-EU trading ties and possibly support the budget by boosting growth. Under the outline, the main levers would be age, duration and the number of participants, with the Office for Budget Responsibility urged to include the idea in its forecast for the coming months.

She told The Times that the government has agreed to pursue an 'ambitious youth experience scheme' to allow British youngsters to go to European countries to work, travel, volunteer, gain experience and learn languages, with the same opportunities extended to European youths in Britain. 'And we want young people from those European countries to also be able to come to the UK and have the same opportunities that my generation had to travel and work and study in Europe,' she said. 'All of those things matter for young people and indeed for businesses,' she added.

The main considerations, she noted, would be the age of participants, the duration of stays and the cap on numbers. Reeves stressed that the proposal would not recreate freedom of movement, but would provide a structured, time-limited path aimed at boosting trade and skills. She also recalled her remarks from April about a potential 'one in, one out' approach that could be acceptable if it did not lift net migration.

Analysts cautioned that the policy could pose its own migration challenges, pointing to figures suggesting as many as 50,000 Europeans could be eligible to live and work in the UK each year under a broad interpretation. Reform leader Nigel Farage has argued the plan would represent a back door to free movement, while others counter that focused mobility could help economic ties.

Policymakers are watching Labour ahead of its Liverpool conference. A poll released on the eve of the event showed broad concern among voters about cost of living and immigration, with two-thirds saying Labour had not met expectations. Reform was identified as Labour's main electoral threat in the survey, which put Farage's party at 29%, followed by Labour at 20%, the Conservatives at 15%, Lib Dems at nine and Greens at eight.

The proposal arrives as Labour seeks to recalibrate its migration stance and emphasize controlled mobility as an engine of growth. If advanced, the package would require negotiations with EU member states and eventual parliamentary approval in both blocs. The conference would likely be used to set out Labour's broader economic plan and its approach to balancing openness with public concerns.