Labour’s Reeves Urges OBR to Account for EU Youth Mobility scheme in Upcoming Forecast
LIVERPOOL – Shadow Chancellor Rachel Reeves is pressing for the Office of Budget Obligation (OBR) to factor the potential economic benefits of a new EU youth mobility scheme into its forecasts ahead of the November 26th Budget, according to a report in The Times. Reeves argues the scheme would be “good for the economy, good for growth and good for business.”
The UK and EU agreed in may to work towards a “youth experience visa” programme,though specific details remain under negotiation. The proposed scheme could allow individuals aged 18-30 to live and work in the UK for two to three years.
Reeves believes acknowledging the scheme’s potential impact is justified, citing the OBR’s previous assessment that brexit reduced UK growth by 4%. “Consequently of that reset in May, we think the economy will be stronger. We also want the OBR to score that,” she told The Times.
The call comes as the Chancellor prepares for a perhaps significant fiscal gap – estimated between £20 and £30 billion per year - due to expected downgrades in long-term economic performance and productivity. Inclusion of the youth mobility scheme’s projected benefits could lessen the need for spending cuts or tax increases, despite Labour’s pledges not to raise income tax, National Insurance, or VAT for working people.
The UK currently operates similar youth mobility schemes with 11 countries, including Australia, New Zealand, and japan, issuing just over 24,000 visas in 2023.
The proposal has faced criticism from Conservative and Reform UK parties, who view it as a step towards restoring freedom of movement.The OBR is due to deliver its first economic forecast to the Treasury on Friday.
