Brexit: Outstanding Commitments

Lord Robathan Excerpts

Wednesday 6th February 2019 Lords Chamber

Asked by

[Lord Robathan]

To ask Her Majesty’s Government what agreement, if any, has been reached with the European Union concerning payment in the event of a no-deal Brexit of £39 billion for the United Kingdom’s estimated outstanding commitments.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, the Government are committed to getting a good deal for the UK, and have agreed a fair financial settlement with the EU. Even if the UK leaves without a deal, the Government have always been clear that the UK has obligations to the EU—and that the EU has obligations to the UK—that will survive its withdrawal, and that these obligations would need to be resolved.

[Lord Robathan (Con)]

My Lords, I am sure everyone in the House will agree that we—be it as individuals or as a nation—should pay our debts. But I suspect that most of us would also agree that we should not pay bills when we have received nothing in exchange. I hear that the European Commission is demanding that, whatever happens—should we leave without a deal—it would expect £39 billion from us. This probably has more to do with the hole it will have in its budget when we leave, rather than anything else. Could my noble friend reassure me that we will definitely renegotiate any financial deal should we—regrettably—leave without a deal on 29 March?

[Lord Bates]

The position on the financial settlement was that it went alongside the withdrawal agreement. It is, if you like, looking at our obligations to the EU as a result of our membership. It is not connected to the future economic partnership that we hope to negotiate with our European friends and partners. Were we not to honour that financial settlement, which is part of the withdrawal agreement, that would probably have a significant bearing on our ability to get a good deal for the UK in the future.