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UK Govt 'cannot accept' EU budget increase

Thursday 28 October 2010 - by Andrew Hickley

The UK’s financial secretary to the Treasury says the British government “cannot accept” a proposed 6 per cent increase in the EU’s 2011 budget.

Replying to an urgent question in the House of Commons yesterday, Mark Hoban stated that the government will “fight hard” against any increase in the budget, mooted at a time when nations are attempting to tackle their budget deficits.

A 6 per cent rise in the EU budget has been proposed by Members of the European Parliament, costing the UK an estimated extra €1bn ($1.42bn) a year.

This is after a recent UK budget review found €92bn ($128bn) of UK public spending savings over the next four years.

Hoban said: “I should say that we have serious concerns about the proposed size of the 2011 EU budget.


“When countries across Europe are taking tough decisions to put their public finances in order, it would be wrong, unjust even, to have a 6 per cent rise in next year’s EU budget, as has been suggested.”

A 2.9 per cent increase to the budget has already been agreed in principle by the European Council, costing the UK around an extra €457m ($631m) a year.

Hoban also stated that he believes the UK has “led the way” on economic governance.

Responding to the report from the Herman van Rompuy task force presented to the October Economic Council, he said that the EU could learn lessons from Britain’s approach after the crisis.

“Multi-year budgets and independent statistics and forecasting have already been introduced, and we have a clear fiscal mandate to eliminate our structural deficit.

“We are leading the eurozone, and our high standards have already received international endorsement.”

UK Prime Minister David Cameron will be attending the council of European leaders today to thrash out the EU budget with other member state leaders.


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