A new EU freedom of movement scheme would undermine South Yorkshire’s efforts to tackle unemployment - Sir Stephen Houghton

Part of the argument Britain voted to leave the EU was to help prioritise training a skilled workforce in the UK – taking away the ability for businesses to import short-term cheaper labour from abroad – and tackle the problem of economic inactivity.

Tackling this was one of the main priorities in the Labour Party manifesto – promising to invest in forgotten towns and communities to achieve wealth generation, secure economic growth and provide a reset to deprived towns and cities where the impact of globalisation has been devastating.

Being part of the European Union provided many economic, political and societal benefits to Britain. But nine years on since this historic vote, we are now at risk of turning back to the policies of old rather than adopting new ideas for the future to help achieve the main goal of generating economic growth.

Recent reports have emerged that the Government is now considering a revised freedom of movement scheme targeted at the EU for workers aged 30 or under. The policy has been brought back for two reasons. The first to offer political re-alignment and help improve and reset economic relations with the EU. The second is to attract a younger generation of talent to help fill the growing number of skilled vacancies that businesses in Yorkshire and beyond are struggling to fill.

This short-term solution will cut right across the work that key council initiatives such as the one developed in my authority of Barnsley are doing to help retrain our residents with high-skilled jobs that can provide well-paid, fulfilling careers in new innovative sectors.

Our Pathways to Work Commission in Barnsley has highlighted to the whole country how they can tackle these issues head-on. My town has a much higher rate of economic inactivity among its residents compared to the national average.

To address this issue, Barnsley Council has established a partnership with the South Yorkshire Mayoral Combined Authority to support more individuals who wish to work in Barnsley and South Yorkshire.

This collaboration – piloted through central government funding – has led to the launch of the Pathways to Work Commission, which aims to ensure inclusive access to employment opportunities in Barnsley.

The commission has enlisted the expertise of the leading labour market, skills, and health professionals, who have provided valuable insights through a series of workshops and surveys.

These initiatives have longer lead times and won’t generate the short-term growth surge the Government is looking for. But they will allow employers to hire locally, cut the benefits bill over the long term and, most importantly, support local people with lifelong careers. Simply increasing migration, already at record levels with a reported 750,000 new migrant workers coming to the UK in 2025, while at the same time cutting benefits payments to reduce government expenditure and encourage people into work, will only add to the cycle of despair that many in my constituency and across Yorkshire face every day.

Those who are inactive need access to good employment, and they need investment in their communities. In post-industrial Britain, too many places feel both left behind and that politicians don’t care.

I would urge the Government to stick to the course they were elected on.

If we don’t help the UK’s economically inactive with the many challenges they face, poverty will increase or people will slip into the shadow economy, even more so in those places already feeling left behind.

This will bring added pressure on housing and the NHS, further undermining and impacting two other key government missions. These pressures will leave Labour MPs in ‘red wall’ seats helpless against the pressure from both Reform and Conservative Party at the next election.

Pathways to Work is a real opportunity to build inclusive economic growth. More importantly, it will help build the kind of economy that the Prime Minister and Labour members like myself want to see in Yorkshire and beyond.

There are many reasons and benefits to rethink our current relationship with Europe. But at the expense of bringing local people on a path back to work is not one of them.

Sir Stephen Houghton is the leader of Barnsley Council.