Rachel Reeves has insisted she wants Britain’s young people to be able to work in Europe, amid growing pressure on the government to agree to a youth mobility scheme with the EU.
The chancellor also said she’s “determined that we can get there” after talks about a trade deal with her US counterpart Scott Bessent in Washington DC.
Asked about the prospect of a youth mobility scheme, Ms Reeves said: “We’re going to bring down net migration and we aren’t going to return to freedom of movement. But we are hosting the summit next month.
“We do want to see better trading relationships between our countries and we do want to enable young people from Europe and the UK to be able to work and travel overseas.”
Speaking to The Sunday Times, she added: “But we’ve got to get the balance right, because I do not want to see net migration increasing. I want to see net migration falling.”
It comes after the chancellor said Britain’s relationship with the EU is “arguably even more important” than trading links with the US, ahead of a meeting with her US counterpart.
A youth mobility scheme, which has become a major sticking point between the UK and EU, would allow 18- to 35-year-olds to move and work freely between countries for up to two years.
EU officials see such a scheme as a key aspect of closer ties with Britain, but so far, the UK government has publicly opposed it amid concerns it would breach the party’s manifesto pledge not to return to freedom of movement and could drive up net migration.
Britain already has a similar agreement with Australia and 12 other countries, including New Zealand, South Korea, Iceland, Uruguay, Hong Kong and Taiwan. But Downing Street has repeatedly ruled out such a scheme with the EU.
However, Ms Reeves’s remarks signal a softening of the government’s position. It comes ahead of the EU-UK summit taking place on 19 May – seen to be a key part of Sir Keir Starmer’s reset of relations with Brussels.
Supporters of the agreement insist that freedom of movement is not on the table, as the scheme would have clear limits – including on the length of time individuals can stay and their age.
Earlier this week, more than 60 Labour backbenchers urged the government to negotiate a youth mobility scheme as part of the desired reset with the bloc.
In a letter to Nick Thomas-Symonds, the minister in charge of negotiations with the EU, 62 MPs and 11 peers called for “a new and bespoke youth visa scheme” for UK and European citizens under 30.
But asked about the letter, environment secretary Steve Reed said that it is “right” to say there are no plans for a youth mobility scheme, adding: “We’re not going to breach our manifesto commitments.”
Speaking to The Sunday Times, the chancellor also said she is sure she can get a trade deal with the US over the line, but admitted there is “some more detail to work through”.
It comes as ministers scramble to secure a carve out to Donald Trump’s sweeping tariffs, which are wreaking havoc on the global economy.
Asked about the challenges ahead following her trade talks with Mr Bessent, Ms Reeves said: “Both of us want to see trade barriers fall.
“There’s still some more detail to work through. Both of us want a deal, but it’s got to be a deal that is in our national interest. I’m determined that we can get there. I know we can get there. There’s some more detail to work through.”
She added: “Britain is an open trading economy. We benefit when trade barriers fall, and we want to see trade barriers fall with all of our trading partners.”
