EU Budget

Treasury written question – answered on 24th November 2010.

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Photo of David Nuttall David Nuttall Conservative, Bury North

To ask the Chancellor of the Exchequer what forecast in pounds sterling he has made of the UK contribution to the EU budget in the period 2007-2013 that will result specifically from the application of Article 4(1)(g) of Council Decision 2007/436/EC, Euratom to the system of European Communities' own resources.

Photo of Justine Greening Justine Greening The Economic Secretary to the Treasury

The abatement disapplication was agreed by the previous Government in 2005, and means the UK no longer receives an EU budget rebate on non-agriculture spending in member states that joined the EU after 2004.

According to European Commission figures, the disapplication of the UK abatement referred to in article 4(1 )(g) of Council Decision 2007/436/EC costs the UK £286 million in 2009, £1.2 billion in 2010 and £1.98 billion in 2011.

Thereafter, with the abatement disapplication fully phased in, the cost to the UK is expected to be around £2 billion per annum.

This is being phased in as follows:

20% in 2009;

70% in 2010;

100% from 2011.

The total additional cost of the abatement disapplication is capped in the period 2007-13 to a total of 10.5 billion euros (expressed in 2004 prices).

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