Post-Brexit Financial Settlement

Debate between Viscount Ridley and Lord Frost

Thursday 15th July 2021 Lords Chamber

[Lord Frost (Con)]

My Lords, we are not surprised by these figures. As I said, the details of how they are calculated are set out in the withdrawal agreement in exhaustive detail, through several dozen articles. The question to which the noble Lord alludes has been sufficiently debated. There are different views on this question but what is clear is that, before we left the EU, we were paying very substantial net sums into it.

[Viscount Ridley (Con) [V]]

My Lords, RTE reports that our 2021 payment is to be €6.8 billion whereas, in the latest Budget Red Book, table C.6 on page 97 shows our 2020-21 sum as £10.4 billion—nearly twice as much. The sum for 2021-22 is £11 billion, so the discrepancy is not likely to be due to year-end differences. The difference is several billion pounds, which is a big number by any standard. As Senator Everett Dirksen said 60 years ago:

“A billion here, a billion there, and pretty soon you’re talking real money.”


Can the Minister explain the discrepancy?

[Lord Frost (Con)]

My Lords, I do not think that any of us on this side of the House feels particularly comfortable paying large sums to the European Union, but it is an agreed outcome in the withdrawal agreement and we stand by it. There are differences in the calculation methods between the EU arrangements and ours. For example, their figure does not include all the receipts we will receive in future, there are different ways of forecasting and so on. We are not surprised that there are some differences. What matters is our own calculations and that we are comfortable with the bills when they arrive, which we are.