Press Release, 8th June 2007

BRITAIN’S NET CONTRIBUTIONS TO EU BUDGET SET TO DOUBLE

A  new paper by Ruth Lea, Director of Global Vision shows, that based on recent estimates the UK’s contributions to the EU budget are set to double in coming years.

During the last decade (1997–2006), Britain’s gross contributions to the EU Budget averaged £10½bn a year whilst the net contributions averaged £3¼bn.

For the current 7-year EU financing period (2007-13) these figures are expected to rise significantly. Gross contributions are forecast to run at more than £14bn (in 2004 prices) whilst average net contributions will be over £5½bn.

Reflecting a smaller rebate and weaker receipts in the final 3 years of this financing period, Britain’s net contributions are expected to average almost £6½ bn for the years 2011-2013 – double the average of the decade from 1997 to 2006.

The author commented, “British net contributions to the EU are rising and will average £6½ bn by the beginning of the next decade.  These funds could be far better spent on either cutting people’s taxes, improving Britain’s health, education and transport facilities or increasing Britain’s aid budget to the poorest countries across the globe.”