Multiannual Financial Framework

Debate between Greg Clark and Denis MacShane

Wednesday 31st October 2012 Commons Chamber

[Greg Clark]

Our position is that we want the EU budget to be cut, but part of the negotiating mandate that the Prime Minister has agreed is that the very most that we would accept would be a real-terms freeze. However, we want a cut, as I shall explain.

The Commission—this time with the European Parliament—has proposed an increase of 6.8% for the 2013 annual budget. That is for a year in which the IMF forecasts that growth throughout Europe will average 0.5%. My view, and that of the Government, is that such a demand constitutes a grotesque imposition.

[Mr Denis MacShane (Rotherham) (Lab)]

I welcome the Financial Secretary to his new job. Will he confirm the House of Commons Library figures showing that Her Majesty’s Government’s spending between 2010 and 2015 will increase by £100 billion?

[Greg Clark]

I cannot confirm that, but I noted from the right hon. Gentleman’s article in the New Statesman that he is calling for increases in the budget, especially for the structural funds.

The Commission’s proposal is totally unacceptable, so let me say very clearly to hon. Members, as well as those around Europe who might be watching, that it is not happening. On the MFF, we will accept no real-terms increase in the EU budget for the next seven years. We will veto any proposal that either does not cut the budget or does not at the very least freeze it for the whole of the period. There will be no more budgets that pursue ever closer union through ever higher spending.