31 Oct 2014

Britain’s EU bill at £11.3bn – and Brussels wants more

Official statistics show the UK’s net contribution to the EU rose by £2.7bn to £11.3bn in 2013. The government says it will not hand over a further £1.7bn Brussels expects to be paid by 1 December.

Euro banknotes (Getty)

Office for National Statistics (ONS) figures show the rise comes mainly from a £3bn increase in the UK’s gross national income contribution, a figure that reflects higher recent economic growth compared to other member states.

Britain’s rebate also went up – from £3.1bn in 2012 to £3.7bn in 2013, but the net contribution has quadrupled in six years.

In 2008 the UK net contribution to EU coffers was £2.7bn, rising to £3.8bn in 2009, £7.2bn in 2010, £7.5bn in 2011, £8.5bn in 2012 and £11.3bn last year.

The ONS said: “The increase was mainly due to the £3 billion increase in the UK’s total gross national income (GNI) contribution.

“The GNI contribution is calculated based on the UK’s estimate of economic activity within a budget year relative to other EU countries and can increase and decrease from one year to the next.

“The UK, like other countries, receives a rebate on its contributions to the EU, and similarly to its GNI contribution, it can increase and decrease from one year to the next.”

Extra £1.7bn

The new figures do not include an extra £1.7bn which the EU is demanding following a reassessment of national incomes in each of the 28 member states.

Britain is being asked to pay more along with the Netherlands, Italy and Greece, while others including France and Germany will see hundreds of millions of euros handed back.

The Prime Minister has insisted he will not hand over “anything like” £1.7bn and Nick Clegg said the UK “can’t and won’t pay” by the deadline.

‘Doing all we can to bring down EU spending’

Reacting to today’s figures, a Downing Street spokeswoman said: “We have been clear that there has been an increase in the UK’s net contribution to the EU budget, reflecting the way that the rebate was amended under the last government.

“The prime minister’s views on the EU budget are well known. He is absolutely clear that we should be doing all we can to bring down EU spending and get control of the overall EU budget.

“What we achieved with the seven-year framework – which was the first ever cut in the EU’s budget – is vital because that is was affects the UK’s contribution.”

Matthew Elliott, chief executive of Business for Britain, a group campaigning for reform of the EU, said: “Despite David Cameron securing a historic EU budget cut, the cost of the EU to UK taxpayers continues to spiral out of control.

“We cannot continue to write bigger and bigger cheques to remain a member of an unreformed and uncompetitive European Union. Business is struggling under mounds of EU red tape and the UK economy is threatened by yet another potential eurozone recession.

“We must secure a new deal from Brussels and that will only be possible through a referendum.”

Wider cost and benefits

Critics and supporters of the EU disagree about the wider economic costs and benefits of UK membership.

Ukip claims Britain loses hundreds of millions a year through membership, mainly through the cost of businesses having to follow EU laws and regulations.

Others say the country makes a net financial gain from staying in the club of 28 countries.