Summary
Rachel Reeves, the UK's Economics Editor, is advocating for a youth migration deal with the European Union to boost the economy ahead of the autumn Budget. She believes this scheme could positively impact public finances, potentially reducing the need for spending cuts or tax hikes. The deal is still under negotiation, and its inclusion in economic forecasts might influence upcoming financial policies.
Key Facts
- Rachel Reeves is pushing for a youth migration agreement with the EU aimed at boosting the UK economy.
- The proposal is intended to improve the economic forecast before the autumn Budget.
- The idea is for a "youth experience visa" allowing young people aged 18 to 30 to work in the UK for up to two years.
- This proposal follows an earlier agreement in May between the UK and the EU about youth migration.
- Reeves wants the Office of Budget Responsibility (OBR) to consider this scheme's economic effect in their Budget forecasts.
- The scheme has faced criticism for potentially resembling the EU's old freedom of movement policy.
- The UK has similar youth mobility arrangements with countries like Australia, New Zealand, and Japan.
- The proposal could potentially prevent the need for new tax increases or spending cuts by improving economic outlooks.
