London business leaders have called on the Government to strike a youth mobility agreement with the European Union, arguing it is a “no brainer” that would benefit the economy and strengthen international ties.
BusinessLDN, a leading voice for the capital’s business community, urged ministers to reach an agreement at a high-stakes summit in London on Monday. The proposed scheme would allow young people aged 18 to 30 from the UK and EU to live, work, and study in each other’s countries on a temporary basis.
“With youth mobility agreements already in place with countries including Australia, New Zealand, and Uruguay, striking a similar deal with our largest trading partner should be a no-brainer,” said Mark Hilton, policy delivery director at BusinessLDN.
He added: “Giving more young people opportunities to live, work and study in the UK temporarily in a controlled way – and vice versa – would boost the economy while also delivering considerable value through cultural exchange and soft power.”
The UK already operates a youth mobility scheme with 13 non-EU countries, including South Korea, Iceland, Hong Kong and Andorra. However, no such arrangement currently exists with the EU since the UK’s departure from the bloc.
Despite widespread business and political support, Education Secretary Bridget Phillipson stopped short of confirming the Government would back the initiative. Speaking to LBC Radio, she acknowledged that talks were ongoing but declined to give specifics, citing the sensitive nature of the negotiations.
She did, however, reiterate that the Government’s “red line” remains in place: there will be no return to freedom of movement with the EU. Any youth mobility scheme would need to be time-limited and capped, she said, potentially offering visas for just a few years.
Support for such a scheme extends beyond the business world, with around 70 Labour MPs and peers backing the proposal. It is being seen as a key component in Labour leader Sir Keir Starmer’s broader effort to reset relations with the EU, especially in the wake of Brexit’s long-term economic impact.
The Office for Budget Responsibility has warned that the economic consequences of Brexit will be felt for years to come. Meanwhile, the Centre for European Reform estimates that a successful agreement could lift UK GDP by between 0.3% and 0.7%.
Sir Keir is optimistic about progress at Monday’s summit, where discussions are expected to focus not only on youth mobility but also on issues such as defence cooperation and access to the EU’s €150 billion defence fund.
However, negotiations have not been without challenges. Reports suggest that disagreements remain over fishing rights and the specifics of the youth mobility scheme, potentially putting a broader deal in jeopardy.
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Still, Sir Keir struck a hopeful tone during a recent visit to Albania, where he highlighted progress on key international agreements.
“If we do that we will have completed three agreements – India, US and EU – in the course of a two-week window, which is incredibly beneficial for our country,” he said.
The Labour leader also responded to criticism from Conservative MP Kemi Badenoch, who has threatened to block any EU deal that fails to meet her party’s five strict “Brexit tests”. These include no revival of free movement, no new payments to the EU, and no involvement of the European Court of Justice.
Sir Keir dismissed Badenoch’s objections, saying, “It’s really hard to take her seriously,” referencing her previous opposition to trade deals struck with both India and the United States.
As the summit approaches, business leaders continue to push the message that fostering youth exchange with the EU is not only sensible but essential for Britain’s economic recovery and global standing.
