EU Budget (Surcharge)

Mark Garnier Excerpts

Monday 10th November 2014 Commons Chamber

[Mr Osborne]

As I have said, we worked with the other member states to achieve the deal at ECOFIN. We needed the agreement of the other member states on the delay, paying no interest and the permanent change in the rules. It is always good to get lectures from Labour Members about working with and supporting colleagues, so we look forward to the shadow Chancellor’s speech supporting his leader in the next couple of weeks. [Interruption.] The right hon. Gentleman nods, and I know that he is a man true to his word.

[Mark Garnier (Wyre Forest) (Con)]

Much of this discussion has centred on the rebate, but has my right hon. Friend done any calculations of the value of the forgone interest that would be paid as a result of the extension of the date for this payment from 1 December to the middle of next year?

[Mr Osborne]

Of course, the shadow Chancellor estimated that it would cost £114,000 a year, which is the EU penal rate on £1.7 billion. If interest had been charged even on the rebateable amount, it would of course have been about half that figure.