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UK told to pay £1.7bn extra to EU

The UK has been told it must pay an extra £1.7bn (€2.1bn) to the EU due to its better than expected economic recovery.

To compensate for its economy performing better than other EU countries in recent years, the UK will have to make the top-up payment by 1 December, according to the Financial Times.

The figure represents a fifth of the UK’s annual net contribution of £8.6bn to the EU’s budget.

Other countries, however, will receive a rebate, with France set to receive £790m (€1bn) and Germany £614m (€779m).

Prime Minister David Cameron has said he will challenge the payment and has met with Netherlands premier Mark Rutte to discuss the issue. The Netherlands is being asked to make a top-up payment of £506m (€642m).

A Downing Street source told the FT: “It’s not acceptable to just change the fees for previous years and demand them back at a moment’s notice.

“The European Commission was not expecting this money and does not need this money and we will work with other countries similarly affected to do all we can to challenge this.”

EU officials say the calculation reflects the longstanding practice of adjusting contributions of countries according to their pace of growth.

A European Commission spokesman says: “Britain’s contribution reflects an increase in wealth, just as in Britain you pay more to the Inland Revenue if your earnings go up.”


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There are 12 comments at the moment, we would love to hear your opinion too.

  1. Obviously I’m hoping too much for a Commission spokesman to be less than nine and a half years behind the times with the name of the UK’s taxation authority…

  2. Your economy’s doing better than ours so we want an even bigger slice of your pie than we take already. We know just what Nigel Farage would say to them ~ Not only are we not going to allow you to
    screw us for an extra £1.7Bn but you’re not going to be getting a further £8.6Bn either. Go away and get your own house in order.

  3. According to Daniel Hannan, the payment is equivalent to the total extra in tariffs that exporters would need to pay should the UK exit the EU. Admittedly that’s probably annually. Makes you think though.

  4. Charlie Threadneedle 24th October 2014 at 11:10 am

    “due to its better than expected economic recovery”?

    No, this is in relation to economic performance since 1995, well before any talk of a recovery, a credit crunch or even a dot-com boom (and bust). Please read the FT article that you pillaged more carefully.

  5. Charlie Threadneedle 24th October 2014 at 11:17 am

    “due to its better than expected economic recovery”?

    Er, no, this is in relation to economic performance since 1995, well before any talk of a recovery, a credit crunch or even a dot-com boom (and bust). Please read the FT article more carefully.

  6. Oh Julian I would have thought a financial adviser would know better.
    Let me give you an analogy:

    I run a widget business and so does my neighbour. By good management I make a better profit than he does – indeed even some of his staff come to work for me instead. He goes bankrupt.
    I have made a decent profit – so my tax goes up. My neighbour doesn’t pay any tax as he’s bust – indeed he gets a tax rebate and then receives benefits.

    Does that ring any bells?

    Also all this publicity and fuss over our payments to the EU. We not need a beer swilling chav to sort this out. All we need is to cease our foreign bribe bill (oops I mean foreign aid). Our spending on Foreign Aid in 2013 was 400% more than our levies to the EU. 1% of Govt. receipts went on Foreign Aid as opposed to 0.2% to the EU. (And Dave is pushing to increase our foreign bribery account). So please – less histrionics all round – the press the media TV and UKIP – facts first.

  7. Sorry Harry, the article is saying that because your competitor went bust, and your company has done very well, even allowing his employees to ’emigrate’ to yours, then we will charge you extra corporation tax based on your company’s performance over the past 19 years! And you only have a month to pay it. Even the ‘Inland Revenue’ won’t go back that far (4 years)!

    As for the beer swilling chav, he’s not the one wearing a stupid gimp mask.

  8. Mark

    In the scheme of things all the screaming is about pennies. Look at the percentages. Look at what we waste in foreign bribes.

    Don’t forget if the shoe is on the other foot we would be getting a hand out – indeed as we have done in the past.

  9. Michael.White.BoutiqueCapital - Bridging Loans 24th October 2014 at 1:01 pm

    Quite simply, c£2 Billion is a huge sum of money to the average taxpayer. A sum that could do an awful lot of good in the UK. Not forgetting the tabloids will also be explaining that Germany and France are to receive rebates, or put another way, being given UK taxpayer money.

    Accordingly, thanks to the actions of our myopic ‘friends’ at the Euro Commission, there will be a lot more UK voters at the end of today who will feel very aggrieved and looking forward to the referendum to exit Europe…..

  10. Mr Katz: Sorry but your assertions are based in ‘crooked thinking’ – to excuse one thing as not being wrong because something else is worse is a classical diversionary tactic, typically used by politicians. It certainly is the case that we should tackle overseas aid, but that does not make extraneous payments elsewhere ok because they are lesser amounts. Also, you state that ‘foriegn bribes’ are wasted. Presumably you accept that we get some benefit back from those ‘bribes’ in much the same way we get a ‘rebate’ from the EU on our (approx) £17billion annual subscription – extra trade etc – otherwise they’re not really ‘bribes’, they’re ‘gifts’ . You also state, quite incorrectly, that out overseas aid budget is 4 times greater than our actual contribution to the EU, which would bring it to around 56 billion per year, which it is not. Aside from being wrong this too is irrelevant given that, effectively, the foriegn aid budget is both variable and voluntarily made by the governement, whereas the EU contribution is compulsory and fixed. In fact our total EU contribution is something like 17 billion, with a 3 billion rebate – our foriegn aid budget is around 13 billion, both annually. Neither can be used as a reason to excuse the other, regardless of size or scope

    Whilst I do not agree with the foriegn aid budget, I would much rather give money than have it forcibly extracted. But mostly, I cannot see why, given these amounts are so large, it is neccessary to exaggerate either to make a proper case against one of them – unless you have an axe to grind, so to speak.

    The EU is in a position of power that it constantly abuses and discontent is rising in almost every country. It is so corrupt and dictatorial, even the Italians are complaining. The UK provides around 20% of the total nett EU budget, yet we are ignored at every turn. Personally I think the EU have more to worry about than us, we spend 10 billion per year more with the EU than it spends with us and we donate 20% of their distributable funds, that’s a lot to lose when you already can’t account for what you’re wasting

  11. Quite simply this is evidence of the good paying for the bad or inept !!

    Something we all know a great deal about !!

    And one thing you are failing to see Harry in your analogy is; the bad are not going to be allowed to go bankrupt ! as the poor performing or bad ones are actually getting a pay out !!!

    So you being better and running a better business is paying extra so the bad can stay in business and in your often used phrase ” continuing to bail out the feckless”

  12. The bankrupt gets the tax rebate and is on benefits – who pays for that? Or take the other analogy – the bankrupt has blown it, but if we both have to go into a care home he’s in for free and I pay. No different from the EU. If I go bust I will be in for free. If we do badly in the EU we would get the bail out. It’s nothing other than tax. And our Government has the cheek to complain about being taxed. Can I now withhold my January payment because I don’t agree with it?

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