Rachel Reeves' Bold Promise to Combat Youth Unemployment

UK finance minister Rachel Reeves plans to ensure unemployed youth find work to boost Labour's appeal. Facing political pressure and fiscal discipline, Reeves aims to abolish long-term youth unemployment while addressing budget challenges and potential tax increases. Economic concerns and inflation add complexity to her fiscal strategies.

In a bold move, UK's finance minister Rachel Reeves is set to announce a groundbreaking initiative aimed at eradicating long-term youth unemployment. The announcement, expected at Labour's annual conference, involves guaranteeing paid work for young individuals on Universal Credit for over 18 months without employment or education.

This comes amid challenges for the Labour Party, grappling with improving living standards while adhering to strict fiscal discipline. Reeves faces calls from within her party to address issues like child poverty, yet remains committed to balancing the budget by 2029.

Compounding the political and economic constraints, the UK faces potential tax hikes in Reeves' upcoming November budget, as employers brace for impact amidst already high government borrowing costs and inflation concerns.

(With inputs from agencies.)