Post-Brexit Financial Settlement

Lord Moylan Excerpts

Thursday 15th July 2021 Lords Chamber

Asked by

[Lord Moylan]

To ask the Minister of State at the Cabinet Office (Lord Frost) what assessment Her Majesty’s Government have made of the European Union’s consolidated budget report for 2020, which states that the United Kingdom has liabilities of €47.5 billion as part of the post-Brexit financial settlement.

[The Minister of State, Cabinet Office (Lord Frost) (Con)]

My Lords, the Government’s regular update to Parliament on EU finances has been published today by my right honourable friend the Chief Secretary to the Treasury. The Treasury estimates that the current cost of the net financial settlement is £37.3 billion. This remains within the previously published central range. The €47.5-billion figure is an estimate produced on a different basis by the EU for its internal accounts processes.

[Lord Moylan (Con)]

My Lords, these are large sums—larger even than those we were discussing yesterday when we discussed the cuts to overseas aid. It appears that the EU is the final arbiter of what we should pay. I understand that there are circumstances when you might want to give a trusted friend details of your credit card, including the three numbers of the back, but if that trusted friend is abusing the card, is it not the right policy to cancel it?

[Lord Frost (Con)]

My Lords, it is of course a legal obligation to make the payments to the EU that were agreed in the withdrawal agreement. They were heavily negotiated in some detail at the time, and of course we stand by them. It was a general difficulty, with a very large sums that we were paying to the European Union, that underlaid the referendum vote in June 2016.