Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what effect recent changes in the sterling rate has had on the UK's contribution to the EU.

Member States’ contributions to the EU Budget are made in national currency based on an exchange rate fixed on the last working day before the start of the EU Budget year. There are no subsequent changes to the exchange rate in that year. Recent changes in the exchange rate have had no impact on our payments to the EU in 2016.

As the OBR set out in their November 2016 forecast, changes in the exchange rate will affect the sterling value of euro-denominated payments, abatements and receipts. Overall, the OBR have revised down their forecast for the UK’s net contribution to the EU, which includes receipts to the UK public sector, over 2016-17 to 2020-21 by £0.3bn.