Brexit: Financial Settlement

Debate between Lord Bates and Lord Spicer

Monday 13th November 2017 Lords Chamber

[Lord Spicer]

To ask Her Majesty’s Government what estimates they have made of the impact on the eventual financial settlement with the European Union of those European Union assets towards which the United Kingdom made a financial contribution and which at Brexit will remain part of the European Union.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, the treatment of the European Union’s assets will need to be agreed as part of the negotiations. The Government are now performing a line-by-line analysis of our potential commitments. We recognise that the UK has obligations towards the EU and the EU has obligations towards the UK.

[Lord Spicer (Con)]

My Lords, have we not got it exactly the wrong way round with Brussels? How on earth are we meant to decide on the financial matters before we know the more general direction of what has been proposed?

[Lord Bates]

That fits very much with what the Prime Minister said in her Florence speech on 22 September, when she said that nothing is agreed until everything is agreed. We see this very much as a single negotiation. We want all of the elements to it agreed—and an important part of that will be the financial settlement.

Barnett Formula

Debate between Lord Bates and Lord Spicer

Thursday 13th July 2017 Lords Chamber

[Lord Bates]

That is a good point. It is recognised, of course, in a lot of funding that goes through at the moment. When we look at employment in the UK, which we are pleased to say reached record levels this week, we recognise that there is a 75.2% employment rate in England, 74.1% in Scotland, 72.6% in Wales but only 68.7% in Northern Ireland. That is one reason why this is a good investment in the future of young people in Northern Ireland.

[Lord Spicer (Con)]

Is my noble friend aware that the person who was most perplexed by the Barnett formula was the much-loved Joel himself, who came to believe that it was distorted and very unfair—for instance, to the north-east of England?

[Lord Bates]

He did. Although I am no student of history on this, it was introduced very much as a short-term formula to get the then minority Labour Government through to the 1979 election. It was not intended to be ongoing but it has been ongoing, and we have come up with a better solution, which is to have greater fiscal and political devolution.