Talks between the UK and the European Union over a new post-Brexit youth mobility scheme have hit a major stumbling block, with both sides divided over how many visas should be issued each year. Diplomatic sources say the UK wants a cap of between 40,000 and 50,000 places annually, while Brussels is pushing for a more flexible system without a fixed limit.

The proposed Youth Mobility Scheme is seen as a key part of wider efforts to improve UK-EU relations after Brexit. The deal would allow under-30s to live and work in the UK and across the EU for up to two years without requiring employer sponsorship — a move that could have major implications for tourism hotspots such as Mallorca, Ibiza and the Costa del Sol.

Business groups and recruiters had been counting on the scheme to help ease labour shortages across sectors including hospitality, agriculture, technology and the creative industries. Universities have also warned that tuition fees for EU students — which can reach as high as £70,000 for some courses — risk discouraging talented young people from studying and later working in Britain.

If approved, the scheme would make it easier for young Spaniards to live and work in the UK again after Brexit, while also potentially encouraging more British workers and students to spend time in Spain. Tourism regions dependent on seasonal staff could benefit from a larger pool of English-speaking workers returning to hotels, restaurants and leisure businesses during the peak summer months.

British negotiators argue that an annual cap would provide greater control over migration and help maintain public confidence in the scheme. However, EU officials fear demand could quickly exceed the proposed limits, potentially forcing a lottery-style system for applicants. With a UK-EU summit planned for late June, negotiators now face mounting pressure to reach an agreement within weeks.