European Union (Finance) Bill

Luke Hall Excerpts

Tuesday 23rd June 2015 Commons Chamber

[Mr Gauke]

I am grateful for the constructive tone that my hon. Friend brings to the debate; he has a history of so doing. He has argued for greater efficiency and transparency in the expenditure of the European Union for many years, and I am grateful to him for that.

I should also point out that we are providing technical assistance to the Commission as it considers all the options for enhancing performance on the budget. We are sharing our expertise in areas such as value for money, spending area objectives and improving budgetary performance—for example by removing adverse incentives and improving accountability and transparency.

[Luke Hall (Thornbury and Yate) (Con)]

My constituents were aghast when the previous Labour Government gave away our rebate. Will the Minister confirm that the Bill will ensure that there will be no further such concessions as long as this party is in power?

[Mr Gauke]

I am more than happy to give my hon. Friend that assurance. When we debate the scrutiny of expenditure, it is worth bearing it in mind that allowing us to make a bigger contribution than we otherwise would involves a cost to the UK taxpayer. The fact that budgets were allowed to increase significantly also means that the focus on getting value for money could be lost. If we are to eliminate wasteful expenditure, it is important that we bear down on the overall budget, because that has a big impact. That is a clear area of difference—if I may put it that way—between the two parties. We have placed a consistent focus on controlling expenditure, whether at UK or EU level.

The next opportunity to look wholesale at the priorities of the EU budget will be the mid-term review of the MFF. That review is required under the agreement reached on the MFF, and it must take place by 2016. The Opposition’s calls for a review appear to add little to the review that is already planned. The Government will engage constructively with the Commission, the Council and the European Parliament to look at further ways in which spending can be improved.

In the meantime, the Government are taking every opportunity to bear down on wasteful spending and to highlight it where it is identified. That is reflected in our having voted against the discharge or approval of the EU budget for the past four years. Until the European Court of Auditors is able to give a positive statement of assurance on the EU accounts, we will continue to work with allies in calling on the Commission to do better. I note that this position is not the one that the previous Labour Government took.

Together with our allies, Sweden and the Netherlands, we have issued a joint counter-statement calling on the Commission and member states to take proactive steps to reduce the level of error in the EU accounts by simplifying regulatory frameworks and increasing the training and guidance available to national officials. By supporting the European Court of Auditors’ calls for more focus on performance and added value in the EU budget, we have helped to change the Commission’s focus from compliance to results.

The Government are also playing their part in the work being undertaken to simplify the rules governing the implementation of structural funds. In the past, the Commission’s focus has too often been on compliance, fostering a tick-box culture with little care for performance. A structural fund simplification agenda was launched earlier this month by Commissioner Cretu, and those involved will meet for the first time next month. The budget for results initiative, to which I have already referred, will provide another valuable opportunity for this Government to continue to insist on maximum efficiency and results in relation to EU spending.

Of course, we are also keeping up the pressure on the Commission in the annual budget negotiations and in response to in-year requests for more funding. We have a strong track record of pushing back against draft amending budgets, to ensure that value-for-money criteria are met, and we regularly challenge the Commission to identify opportunities for reallocation rather than coming to member states with requests for more money. The Government are constructively engaging with the work that I have outlined, in order to ensure the best possible deal for the United Kingdom.