EU Budget (Surcharge)

Lord Dodds of Duncairn Excerpts

Monday 10th November 2014 Commons Chamber

[Mr Osborne]

I thank my right hon. and learned Friend for his support; he is not always fulsome in his support of our European policies, so that is particularly appreciated. He is right that around the table were other members states that had been hit by this very large payment—the Dutch, the Italians, the Greeks and others—and therefore there was a lot of sympathy for trying to change the rules. In parallel, as he would know, there is a discussion with the Commission about the British rebate, which is properly a matter for the discussion with the Commission rather than ECOFIN.

[Mr Nigel Dodds (Belfast North) (DUP)]

Does the Chancellor accept that, whatever is said about the rebate, this substantial bill for the United Kingdom still represents an EU penalty for stronger economic performance? Does he not think that there are better ways to spend £850 million than handing it over, albeit next year, to the European Union?

[Mr Osborne]

I agree with the right hon. Gentleman that the European Union could spend the money far better than it does through reform—that is the reform we are seeking to achieve. Of course membership of the European Union does mean adjustments to the payments each year, and sometimes Britain has been a beneficiary of them—indeed, when the shadow Chancellor put the country into recession we received a tiny bit of money back from the EU. That is one of the regular features of membership but, as the right hon. Gentleman says, it demonstrates why we need further reform in Europe.