Question to the HM Treasury:

To ask Her Majesty’s Government whether the United Kingdom has to pay an additional £1.7 billion contribution to the European Union Budget; and whether any such payment has been reduced or offset.

Last year, the UK was presented with a bill for an additional payment to the EU worth £1.7 billion, reflecting changes to economic data for all Member States and dating as far back as 2002 for the UK. The Prime Minister was clear that this sudden production of a bill to Britain for payment on the 1 December was completely unacceptable.

EU Ministers met on the 7 November, and the Chancellor secured an agreement which meant the UK paid nothing on 1 December. Instead the payment will be made in instalments next year, and no fines or interest will be applied. The UK will also not pay £1.7 billion. The British rebate will apply in full, and apply simultaneously with the payment, not a year in arrears as normal. This means the Government has halved the bill, to around £850 million.

Lastly, the UK won agreement to change the regulations to ensure this never happens again. In the future, if any country received an adjustment demand that is excessive, it will have the same opportunity to phase payments so that they are more affordable.

The Government will continue to press for necessary restraint and discipline in all areas of the EU Budget in order to get the best deal for British taxpayers.