Rachel Reeves has pushed for an “ambitious” youth migration deal with the EU in a bid to improve the outlook of the public finances ahead of the autumn Budget.

The chancellor told the Times an exchange scheme for young workers would be “good for the economy, good for growth and good for business”.

The UK agreed to work towards a “youth experience visa” with the EU in May this year but the specifics of the scheme are still being negotiated.

Reeves also called for the Office of Budget Responsibility (OBR) to factor the potential economic impact of such a scheme into its forecasts ahead of the Budget, which she hopes will reduce the need for spending cuts or tax rises.

The proposal has previously been criticised by the Conservatives and Reform UK, who have said it amounts to a partial return to freedom of movement, which ended when the UK left the EU.

Such a scheme could mean those aged 18-30 could stay for two or three years, but the details are to be negotiated.

In an interview with the Times ahead of the Labour Party’s conference in Liverpool this week, the chancellor declined to specify how many visas could be issued annually under the scheme.

The UK already has similar schemes with 11 countries including Australia, New Zealand and Japan, with people able to stay for up to three years depending on where they apply from.

Under those agreements, the UK issued just over 24,000 youth mobility visas in 2024.

The OBR has previously scored UK growth down by 4% due to the original Brexit deal.

The chancellor believes that has set a precedent and that the OBR should include the projected economic upsides of a youth mobility scheme into its upcoming forecast.

Referencing the agreement between London and Brussels earlier this year, Reeves told the Times: “As a result of that reset in May, we think the economy will be stronger. We also want the OBR to score that.”

The OBR will send its first economic forecast to the treasury on Friday, which will include the gap the chancellor will need to make up in her 26 November Budget.

Much is depending on the OBR’s expected downgrade to the underlying long-term performance of the economy, or productivity. The gap could be £20 or £30 billion per year.

In response, the chancellor has stressed a series of measures aimed to help the economy grow faster, including further trade deals.

If accepted by the independent forecasters, the inclusion of the proposed EU youth mobility scheme into its calculations could theoretically limit the extent of any new tax rises.

The OBR has scored policy moves on house building and childcare as helpful to the economy in recent years.

Speculation has been rife that the chancellor will be forced to raise taxes or cut spending in order to fill the fiscal hole, despite Labour’s election promise not to increase income tax, National Insurance or VAT for working people.

New Delhi: Planning for retirement is no longer just about saving money but it’s about choosing the right investment that grows with you. One such option is the National Pension System (NPS), which opened up for the non-government sector in 2009. Over the past 16 years, it has steadily evolved into one of the most trusted retirement investment choices. With government-backed reforms, NPS has been shaped into a market-linked, flexible, and tax-friendly plan, making it a practical way for millions to secure their financial future.

Big Shifts in NPS Over the Years

In the past decade, the National Pension System (NPS) has seen significant changes—ranging from greater market exposure to revised tax benefits and updated withdrawal rules. Among the most recent updates is the launch of the Unified Pension Scheme (UPS), which has been introduced exclusively for central government employees, with the exception of those serving in the Indian armed forces. (Also Read: ITR Refund 2025: How Long It Takes, Tracking Status, And Common Delays Explained)

What’s Next for NPS? Upcoming Changes You Should Know

The National Pension System (NPS) is set to undergo another round of major updates, starting October 1, 2025. Among the key changes are the option to invest up to 100% in equities and the launch of a new Multiple Scheme Framework (MSF). In addition, the Pension Fund Regulatory and Development Authority (PFRDA) has rolled out draft proposals aimed at making withdrawal and exit rules much simpler for subscribers.

Key Upcoming Changes in NPS You Should Know

Here are some of the major updates coming to the National Pension System (NPS) in the months ahead:

100% Equity Investment Option (From October 1, 2025)

– Non-government sector subscribers will soon be able to invest up to 100% of their funds in equities under the new Multiple Scheme Framework (MSF).

– This offers higher return potential for those comfortable with stock market exposure, but also comes with higher risk due to market volatility.

Introduction of Multiple Scheme Framework (MSF)

– Until now, only one scheme could be operated under a single PRAN (Permanent Retirement Account Number).

– With MSF, investors can manage multiple schemes from different Central Record Keeping Agencies (CRAs) under one PRAN, giving them more flexibility and choice.

Simplified Exit and Withdrawal Rules

– PFRDA has proposed changes to make exiting and withdrawing from NPS more flexible.

– Exit after 15 years: Non-government subscribers may be allowed to exit after 15 years instead of waiting until retirement.

Higher lump sum withdrawals & easier partial exits: Investors may get more freedom to withdraw funds for needs like education, medical expenses, or building a home.

Major NPS Updates in the Past Year

Over the last year, the National Pension System (NPS) has gone through several important changes. One of the biggest was the launch of the Unified Pension Scheme (UPS)—introduced only for central government employees (excluding the armed forces), many of whom had been pushing for the return of the Old Pension Scheme (OPS).

However, the response to UPS has been lukewarm so far. To address this, the government has allowed a one-time switch option, giving employees the choice to return to NPS if they are not satisfied with UPS. (Also Read: Nifty Falls 3% In 7 Sessions As FIIs Pull Out Rs 30,141 Crore In September Amid Tariffs, Visa Fee Hike And Rupee Slide)

Alongside this, other changes are aimed at making NPS more attractive for investors. The upcoming 100% equity investment option could appeal to younger subscribers looking for higher returns, while simplified withdrawal and exit rules promise more flexibility and better liquidity for those needing access to their funds.

Tax Rules You Should Keep in Mind

Even with the new, more flexible withdrawal options, taxation still applies. Out of the 80 per cent lump sum withdrawal limit, only 60 per cent is exempt from tax, while the remaining 20 per cent will be taxed according to your income slab.

The Donald Trump-led US administration is considering a plan to impose tariffs on imported electronic devices depending on the number of chips in each one of them, Reuters reported, citing three sourcesUnder the proposal, the US commerce department would calculate tariffs as a percentage of the product’s estimated chip value, in a move designed to push manufacturers to shift production to America.

“America cannot be reliant on foreign imports for the semiconductor products that are essential for our national and economic security,” White House spokesperson Kush Desai told Reuters, regarding the matter.“The Trump administration is implementing a nuanced, multi-faceted approach to reshoring critical manufacturing back to the United States with tariffs, tax cuts, deregulation, and energy abundance,” Desai added.Uncertainty remains about the scope of products that would be affected, tariff rates, and possible exemptions. The commerce department was weighing a 25% rate on chip content, and 15% for electronics from Japan and the EU, though figures were still preliminary, a source told the agency.

What will be the impact if tariff gets imposed?

If implemented, the policy would apply to a broad range of consumer goods, from toothbrushes to laptops, potentially raising costs for US households. Economists warned it could also worsen inflation. According to Michael Strain, an economist with the conservative American Enterprise Institute, the move would push up consumer prices “at a time when the US has an inflationary problem, with inflation clearly above the Fed’s target and accelerating.”He added that even domestically produced goods could get costlier due to higher tariffs on imported inputs.Trump has already rolled out sweeping tariffs this year, including 100% duties on branded drugs and 25% on heavy-duty trucks. Earlier in April, his administration launched probes into pharmaceuticals and semiconductors, calling foreign reliance a national security threat.A potential exemption linked to investments in US manufacturing, dollar-for-dollar credits only if a company shifts half its production to America, has been discussed but not finalised. Meanwhile, earlier proposals to exempt chipmaking tools faced pushback from the White House, with sources saying Trump dislikes carve-outs. Taiwan Semiconductor Manufacturing Co. (TSMC) and South Korea’s Samsung Electronics, the world’s biggest non-US chipmakers, could be among the hardest hit.