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 his Department's most recent (a) outturn, (b) estimated and (c) forecast figures are in pounds sterling for the UK's net contribution to the EU budget for the financial year (i) 2009-10, (ii) 2010-11, (iii) 2011-12, (iv) 2012-13 and (v) 2013-14.

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

Table 2.9 of the supplementary material to the June Budget 2010 (see p. 27) provides the latest projections for the UK's net contribution to the EU budget for the fiscal years 2008-09 (outturn) to 2015-16 (forecasts). New projections will be provided by the Office of Budget Responsibility in their autumn forecast at the end of November. The following table include the figures presented in the latest forecast, and historical figures back to 2009-10.

The main reasons for the increasing profile of UK's net contributions are the increase in the size of the budget and the disapplication of the abatement to non-agricultural spending in the new member states. The EU budget for the period 2007-13 was agreed by the previous Government in 2005.

The Government are very concerned about the UK's growing contributions to the EU budget and is working hard to reduce them. In particular, in the negotiation of the 2011 EU budget, the Government have not reached an agreement with the European Parliament given their wider demands beyond the 2011 EU budget. The Government will continue to engage constructively in further negotiations aimed at securing taxpayers a fair outcome for the 2011 EU budget.

In addition, at the October meeting of the European Council, the UK secured an unprecedented and important new principle. From now on the EU budget will reflect the spending cuts being made by national governments, including in the crucial 2014-20 EU spending round.

Net payments to EU institutions( 1) Net contribution to EU budget( 2)
2009-10 3.8 4.7
2010-11 6.8 7.7
2011-12 6.6 7.6
2012-13 6.6 7.6
2013-14 7.6 8.6
2014-15 8.6 9.5
2015-16 7.3 8.2
(1) "Net payments to EU institutions" is as below, less that part of the UK's contribution that is attributed to the external aid programme.

(2) "Net contribution to EU budget" is the gross national income, VAT and traditional own resources contributions (gross contribution) less the UK's abatement, less public receipts.

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