European Union (Finance) Bill

Antoinette Sandbach Excerpts

Tuesday 23rd June 2015 Commons Chamber

[Mr Gauke]

I certainly give that assurance. There was a strong push for a financial transaction tax, which would have had a particular impact on the United Kingdom, given that we have the pre-eminent financial centre not just in the European Union, but in the world. That could have been damaging for the City of London. We resisted it and we will continue to take that approach.

To make a broader point—although I will not go too far down this route, Mr Streeter—it would be more helpful if there was an acceptance in the European Union that the City of London is a jewel in the crown, to use my hon. Friend’s phrase, not just of the United Kingdom, but of Europe as a whole. We should have the pre-eminent financial centre in the United Kingdom, and trying to damage it would be disadvantageous to all within the European Union.

[Antoinette Sandbach (Eddisbury) (Con)]

Will the Minister welcome the confirmation from the Office for Budget Responsibility that in cash terms, the payment from the UK will be the same in the 2019-20 financial year as it is in 2014-15, which in real terms is a reduction of 7%? Will he encourage the Government to ensure that my constituents in Eddisbury do not pay a greater proportion of their taxes into an ever-increasing European budget, and to seek further reductions of a similar scale?

[Mr Gauke]

My hon. Friend is absolutely right. It is noticeable that our contributions are lower than they were in the last year of the previous multi-annual financial framework, not least because of the achievement of the Prime Minister in February 2013. Of course, we continue to suffer the unfortunate effects of the previous negotiation, when part of our rebate was lost, amounting to £2 billion a year. None the less, we have made considerable progress thanks to the steps that were taken in 2013.

For the period from 2014 to 2020, the ORD reintroduces reductions in the GNI-based contributions of the Netherlands and Sweden, and introduces a reduction in those contributions for Denmark. The UK will contribute to those small corrections, but that will largely be offset by changes to other corrections.

Lastly, the ORD lays down the own resources ceilings at 1.23% of total member states’ GNI for payments and 1.29% for commitments, and sets out the method for calculating subsequent changes to those ceilings following the introduction of the European systems of accounts 2010 by all member states.

The Bill will give UK approval to the new ORD and is the last UK action that is necessary to deliver the 2013 deal on the budget.