Overview

• Rachel Reeves called for an ambitious, reciprocal youth mobility scheme with the EU that would let young people live and work temporarily in both directions.
• The chancellor asked the Office for Budget Responsibility to include the policy and the broader Brexit reset in its pre‑Budget forecasts.
• The OBR is expected to cut its productivity outlook, increasing the fiscal shortfall and raising the likelihood of further tax increases in November.
• Key design choices remain unresolved, with options around eligibility for 18‑ to 30‑year‑olds and stays of about two years; participation caps are undecided, with reported figures such as 50,000 a year unconfirmed.
• Opponents in Reform UK and the Conservatives warn the plan would reopen free movement, while some Labour ministers push to relax fiscal rules that Reeves insists will stay in place.