EC Budget

Treasury written question – answered on 14th January 2010.

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Photo of Adrian Sanders Adrian Sanders Opposition Deputy Chief Whip (Commons)

To ask the Chancellor of the Exchequer what recent discussions he has had with the European Commission on (a) the overall size of the EU's 2010 budget and (b) the UK's contribution to that budget.

Photo of Ian Pearson Ian Pearson Economic Secretary, HM Treasury

At Budget ECOFIN (18 November) the UK secured a 2010 budget that was below the level of the Commission's proposals and almost €5 billion (4 per cent.) lower than proposed by the European Parliament, saving the UK taxpayer almost £0.5 billion. This is in line with our overriding objectives of promoting Budget discipline and value for money for taxpayers. This outcome has been made possible through close engagement with the Commission and our European partners throughout the 2010 budget negotiations process.

The UK is required to make contributions to the EC Budget under obligations imposed by the Treaties. The European Communities Act, Section 2 in particular gives effect within the UK to Community law. Contributions to the annual EC Budget are determined in accordance with the Own Resources Decision (ORD), unanimously agreed by all member states and ratified in accordance with their constitutional requirements.

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