Rachel Reeves has sent the strongest signal yet that Labour plans to allow young EU nationals to live and work in Britain under a new post-Brexit deal with Brussels.
The Chancellor said she wanted young people from Europe and the UK ‘to be able to work and travel overseas’ amid claims a youth mobility deal could be announced as early as next month.
Ms Reeves stressed that there would be no return to freedom of movement see when the UK was in the EU.
But speaking to the Times she suggested that a one in, one out arrangement that did not raise immigration figures could be agreed.
Ms Reeves told the Times: ‘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.
‘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.’
However shadow home secretary Chris Philp accused the chancellor of trying to ‘import cheap foreign labour to make up for the damage she has inflicted on the economy’.
The Chancellor said she wanted young people from Europe and the UK ‘to be able to work and travel overseas’ amid claims a youth mobility deal could be announced as early as next month.
Shadow home secretary Chris Philp accused the chancellor of trying to ‘import cheap foreign labour to make up for the damage she has inflicted on the economy’.
‘Be in no doubt, this is just another attempt by Labour to betray Brexit and re-open the door to uncontrolled and unlimited immigration,’ he added.
Reports last week suggested that Home Secretary Yvette Cooper has softened her position to back such a plan, allowing UK nationals to live and work in member states in return for the same number of EU nationals coming here.
The UK already has similar deals with countries including Australia and Canada.
But Cabinet Office Minister Pat McFadden was more circumspect on television today, refusing to ‘negotiate it by interview’.
A UK-EU summit is scheduled to take place on May 19 to discuss a closer post-Brexit relationship.
Last week Ms Reeves said Britain’s relationship with the EU is ‘arguably even more important’ than trading links with the US – even as she tried to hammer out an agreement with the Trump administration.
Ahead of a meeting with Treasury secretary Scott Bessent on Friday she told the BBC the Government was working ‘flat out’ to secure a deal that would mitigate the impact of tariffs imposed by Donald Trump earlier in April.
But Ms Reeves also suggested that improving links with the EU was a more significant priority.
She said: ‘I understand why there’s so much focus on our trading relationship with the US but actually our trading relationship with Europe is arguably even more important, because they’re our nearest neighbours and trading partners.’
Downing Street said the Chancellor’s remarks had been ‘a statement of fact that the EU is our largest trading partner’.
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Reeves says she wants young Brits to be able to work freely in the EU in latest sign Labour will do reciprocal deal allowing under-30s into UK