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Keir Starmer is under increasing pressure to break the deadlock with the European Union over post-Brexit youth visas, amid calls for a deal to be secured within weeks.
The government failed to agree on a scheme to allow 18-35-year-olds to come and work in the UK, and vice versa, as part of its landmark agreement to ‘reset’ relations with the bloc this week.
Despite the blow, the two sides did agree to continue negotiations, however.
Now the UK’s former ambassador to France has called for the UK to make the EU an “improved” offer to achieve a breakthrough.
Lord Peter Ricketts told The Independent: “I would like to see the government make an improved offer on youth mobility to get (it) done.
“The Australia scheme has a cap of 45,000 visas a year, so an offer at around that level would seem reasonable, with a two to three-year duration.”
Such a move could open up an EU offer on a better deal for touring artists such as musicians, he suggested - an issue which has been a long-running dispute since Britain left the EU.
Brexit made it significantly more challenging for touring artists to perform in Europe, with the end of EU free movement reintroducing costly bureaucracy and paperwork for UK musicians wanting to gig on the continent and vice versa.
The idea of youth visas has proven controversial, with Labour ministers forced to defend it and deny is a return to pre-Brexit style freedom of movement.
Anyone coming to the UK as part of a youth mobility scheme with the EU will not be able to access benefits, nor bring family members with them, Downing Street confirmed on Tuesday, saying the issue was a red line for the government.
It is understood that they would also have to pay an immigration health surcharge to use the NHS.
Kate Nicholls, the CEO of UK Hospitality, which represents hotels, restaurants and pubs, told The Independent youth visas should be “confirmed and agreed at pace”.
She pointed to similar deals the UK already has with other countries to allow their young people to come to live and work in Britain.
“We have a clear template with Australia, New Zealand and others, which we hope will expedite negotiations with the EU,” she said.
“We know it will take a little time but hopefully we are talking weeks not months and also important to have a clear and confirmed date to go live as soon as possible after that.”
After securing the Brexit reset on Monday, Sir Keir told MPs a "hat-trick” of trade agreements with the EU, the US, and India showed the UK is "back on the world stage" and would "drive down bills… drive up jobs… and strengthen our borders”.
But the environment secretary, Steve Reed, admitted he "would've liked if we got more" on fishing concessions in the talks, which will see European trawlers gain a further 12 years' access to UK seas.
Conservative leader Kemi Badenoch has pledged to renegotiate with the EU to reverse the deal, and accused the PM of "selling out our sovereignty, our businesses, and the public".
Britain already has similar agreements on youth mobility with 13 countries, including Australia, New Zealand, South Korea, Iceland, Uruguay, Hong Kong and Taiwan.
Open to 18 to 30 or 18 to 35 year olds, depending on where they are from, it allows them to live and work in the UK for up to two years.
To qualify, individuals must have £2,530 in savings to show they are able to support themselves while living in Britain.