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George Osborne tells Europe: Hands off UK budget rebate
Paul Waugh, Deputy Political Editor7 Sep 2010
Chancellor George Osborne warned Brussels not to meddle with Britain's EU budget rebate today as he hammered out a new deal to protect the City.
Before a meeting with fellow European finance ministers, Mr Osborne told the Standard he would not tolerate fresh moves to abolish the UK rebate secured by Margaret Thatcher in the Eighties.
He hit out after European Commissioner for the Budget, Janusz Lewandowski, suggested that the time had come to end the UK deal. Mr Lewandowski said: “The rebate for Great Britain has lost its original justification. Per capita income in Britain has risen substantially since the Eighties.”
Mrs Thatcher secured the payback in 1984 when she told startled fellow European leaders: “We are simply asking to have our own money back.”
Mr Osborne said today: “The rebate is fully justified. Without it, the UK would be paying a net contribution twice as much as France. The real issue is reform of a budget where 40 per cent goes on the Common Agricultural Policy.”
Over the next few years the British contribution to the EU budget will almost treble. According to figures published by the Office for Budget Responsibility, the UK's net contribution will rise from £3 billion last year to £8.2 billion by 2015.
When government departments are facing cuts, Tory MPs point out that the EU is the area of spending that will rise the most over the life of the Government.
Reader views (20)
It seems odd that an enterprise like the EU which hasn't had its fihures signed off for 13 years can still get away with it. Where any company to do the same they would be wound down. Perhaos that is the answer with the EU. Teh UK governmen takes legal action to ensure the accounts ar acceptable and signed off and if not sets about putting the EU budget office into Administration.
This is patheric posturing by Osborne and should be seen as a repeat red herring where the UK will as always do nothing.
I hate to say this but Osborne is morphing into G Brown.
- Robert Marshall, London, 08/09/2010 12:05
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@ Alan, Llandrindod Wells, Wales
Well said that man.
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The unelected corrupt executives in Brussels want to destroy London as a financial centre and make Frankfurt the financial centre of Europe instead.
Make no mistake, the Europeans are no friends of ours. I worked at the Commission in Brussels for 3yrs, I do know what I am talking about.
Where was the revamp over the CAP that was promised if we gave up our rebate? Blair sold us out and the Frogs carry on benefiting by a whopping three times more billions in subsidies than anyone else.
The EU is a profoundly corrupt quagmire. You think our politicians are thieves? Boy it is nothing compared to the vast sums the EU lot are stealing.
- Frank, Home Counties, England., 08/09/2010 09:07
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The EU is telling the UK what to do and the USA is trying to tell the world what to do..and I'm telling my cat what to do ! meow.
- Richard Merrell, Wentworth Falls, NSW Australia, 08/09/2010 08:25
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Richard
In this case a Tragedy of Errors.
Trousers
So they gave us a bit of our money back and put up big signs publicising it.
- Alan, Llandrindod Wells, Wales, 08/09/2010 08:19
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Shakespheare dreaming one evening saw the letters EU appear before him.....he woke, took up his quill and penned.... A Comedy of Errors.
- Richard Merrell, Wentworth Falls, NSW Australia, 08/09/2010 07:46
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@Trousers, London
"Since the 1980s places like Merseyside, Glasgow, Belfast and South Yorkshire have benefitted massively from European investment"
European investment!? Don't you mean British taxpayers
subsidy by which we support the EU eurocrooks in Brussels, only a fraction of which is returned to us?
If we withdrew from the EU ALL our taxes could be invested here!
- Taxpayer_Revolt, London, 08/09/2010 06:52
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As our masters in Brussels already make some 80% of the law's, do we need Parliament, think of the money saved.
- shallotman, Basildon, 07/09/2010 18:09
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Can any one say what the E.U. have ever done for us ?
- Joe, Swanley Kent, 07/09/2010 17:22
Since the 1980s places like Merseyside, Glasgow, Belfast and South Yorkshire have benefitted massively from European investment. Our great industrial cities were neglected to near third world status, at least Brussels was able to see the disgrace in that.
- Trousers, London, 07/09/2010 17:48
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Can any one say what the E.U. have ever done for us ?
- Joe, Swanley Kent, 07/09/2010 17:22
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Kev
Even though I have little faith in them, I prefer anybody to the load of Scottish ex-commies that have just shuffled out leaving an extremely tainted heritage..
- Alan, Llandrindod Wells, Wales, 07/09/2010 17:18
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Its time our government and councils learned to obtain EU Grants, Loans etc like other countries do and how Mayor Ken did when he was Mayor with european grants to fund DLR extensions.
Perhaps we could have a referendum on this issue?
- Melvyn Windebank, Canvey Island, Essex, 07/09/2010 17:09
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@Alan, Llandrindod Wells, Wales
Weighed down by sandals and peace!!Its the sandals and peace that put the spivs in power. almost!
- Kev, London-UK, 07/09/2010 16:45
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Chris of Rochester is quite right, but,
Geo Ozzie will have to learn to play very rough to get anywhere with the EU. Reasoned argument will not do. He will have to go toe to toe and take 'illegal' (in the EU context that is) action.
When Mrs T. threatened to do this the lily-livered Eurocrats backed down.
Geo will have to be a lot tougher than they are in the Bullingham Club.
- Anglo, Sussex England, 07/09/2010 16:43
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Fully agree with Chris of Rochester.
But with the Tories weighed down by a load of "Sandals and Peace" Liberals withdrawal is not even a dream.
Notice how the establishment are turning on William Hague the one genuine Eurosceptic in the cabinet. They will get him any way they can.
Most of the cabinet still believe in man-made global warming.
The nutters are firmly in control of the asylum.
- Alan, Llandrindod Wells, Wales, 07/09/2010 16:19
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The EU is meddling with the City as well. They hope to weaken London and transfer jobs to Paris or Hamburg. Fat chance! The jobs are going to Switzerland, Hong Kong, the Caymans. Places where taxes are lower and regulation is lighter. Especially, the latter.
I'm no great friend of overpaid City fat cats, but at least they pay taxes rather than eating them. Given a choice between a banker and an Eurocrat, I know who I'd throw out of the balloon!
- Nigel, London, 07/09/2010 16:07
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After the clime down by Cameron re referendum,This posturing by a posturing chancellor is purely a comment for domestic consumption,dont be fooled. (again)
- Kev, London-UK, 07/09/2010 16:07
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It's time to force this govenment to withdraw us from the eu., and make this country great again.
- Vince London, West London, 07/09/2010 15:50
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Lets not forget that it was Tony Blair and Gordo Brown stuff who gave away most of our EU rebate which Mrs T fought so hard for. What did we get for giving up this rebate? A "promise" from France what it would discuss the farming subs in 2011 or to put it another way, jack s**t.
- Chris, Rochester, 07/09/2010 13:42
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If the Coalition loses what's left of our rebate, then there will no point in voting Tory again.
- The Convenient Truth, Reading, England, 07/09/2010 13:20
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Emotional and good for newspaper headlines as the budget rebate is, the core and most important element of this article comes in the first paragraph, “Chancellor George Osborne warned Brussels not to meddle with Britain's EU budget rebate today as he hammered out a new deal to protect the City”. The City is far more significant to the wellbeing of all of us in Britain than a few billion in budget contributions (not that we should not fight for that too). HSBC, Barclays, etc often pay more corporation tax to the UK government than the entire UK budget contribution to the EU. Add in the rest of the City and you are talking about serious money into our tax system – paying for education, heath etc.
- John, St Albans, 07/09/2010 13:19
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