Prime Minister Sir Keir Starmer (Image: GETTY)
Sir Keir Starmer was accused of "not being straight" with the public over Brexit after it emerged freedom of movement rules with the EU could be relaxed.
The Labour government is said to be prepared to strike a youth mobility scheme despite previously ruling out the move.
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Government sources said ministers privately recognised they would have to "give ground" on the issue as part of a wider reset of relations with Brussels.
But former home secretary and Tory leadership contender Dame Priti Patel: “It is staggering that the Labour Government are considering relaxing freedom of movement rules with the European Union, despite repeatedly ruling this out.
“The British public and I backed Brexit because we wanted control over our borders.
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"It should come as no surprise that Keir Starmer is not being straight with the public about Labour’s real intentions with the EU when they have already misled the British people on the state of the economy so Labour could give in to their union paymasters at the expense of hardworking pensioners.
“Thatcher came into office promising to roll back the state whilst the only thing Keir Starmer is rolling back on is his promises.”
Shadow home secretary James Cleverly, who is also standing in the Tory leadership contest, added that it was "another big win for Sir Surrender".
He said: "Fresh off the back of caving to the unions’ inflation-busting pay demands, the world’s worst negotiator is getting ready to cave in to the EU and bring back free movement."
Mark Francois, chairman of the European Research Group (ERG) of Tory Brexiteers, added: “Starmer remains a Remainer - and always will.
"This is just an opening gambit, in what will be a journey, step by step, to try and take us gradually back into the EU, but without a referendum.”
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The plan could see EU nationals under the age of 30 being allowed to live and work in the UK for up to three years for the first time since Brexit, with a reciprocal arrangement for young British citizens.
A government source told The Times: “No one will say it publicly at this stage but there is an acknowledgement that this is an area where we will need to move.
“If we are serious about resetting relations with the EU then we need to be prepared to give them some of the things that they want."
Another source said that the government had not “proposed any plans” for a deal but was prepared to “listen to what the EU had to say on the issue”.
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Labour has made clear it wants to see closer ties with the bloc including negotiating a veterinary agreement to reduce border checks on food and a new defence pact.
But Sir Keir, who backed Remain and a second referendum, has insisted he would not look to rejoin the single market or customs union.
A government spokesman said: “We are not considering an EU-wide youth mobility scheme and there will be no return to freedom of movement.”