EU Budget Surcharge

Debate between Lord Deighton and Baroness Ludford

Monday 10th November 2014 Lords Chamber

[Baroness Ludford (LD)]

My Lords, can the Minister confirm that the policy of constructive engagement and alliance that has brought this happy result will be pursued across the whole spectrum of EU policy, instead of one of hubris, bluster, threat and brinkmanship about repatriation of powers, as that is the way to get a good result? Can he also confirm that while of course the UK must always drive a hard bargain to get the best value, given that control of EU spending is vital, our UK contributions to the EU, which give us access to the world’s biggest single market and trade agreements with 50 countries, are less than a quarter of our annual national debt payments? Finally, can he also clarify the exact way in which the final bill has been calculated and whether the rebate is being applied to all 18 years—1995 to 2013—covered by the £1.7 billion GNI recalculation? What is the effect on the rebate in the next and subsequent years?

[Lord Deighton]

I thank my noble friend for the questions; there is quite a list there. My right honourable friend the Chancellor has demonstrated how effective his constructive engagement has been in producing this outcome. I would expect the same result from the Prime Minister’s constructive engagement on the reform programme that we will put to the British people in 2017. It is absolutely right that we drive a hard bargain and get better value for money. If one looks at the EU budget, my right honourable friend the Prime Minister has been the first to achieve a real-terms cut for the multi-year financial facility, through to 2020, which has thereby capped the amount spent. The weakest part of our performance of the past few years in that negotiation was, frankly, the poor rebate deal that the previous Government gave away, which put us in a much weaker position. That was by far the most ineffectual piece of negotiation. It is a complicated calculation to work out these rebates, but the rebate side of the calculation does not go back for the same full period as the GNI calculation.