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EU says its Brexit divorce bill calculations are ‘final’ and must be paid after UK dismisses £40bn figure

Downing Street said it did not recognise the figure, which is up to £5 billion higher than previous estimates

Jon Stone
Policy Correspondent
,Andrew Woodcock
Friday 09 July 2021 13:24 BST
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Boris Johnson’s spokesperson said No.10 did not recognise the EU’s figure
Boris Johnson’s spokesperson said No.10 did not recognise the EU’s figure (Getty Images)

Brussels has insisted its calculations for the Brexit divorce bill are "final" and must be paid after the UK dismissed them as an inexact "estimate".

EU accounts show the bloc expects the UK to pay €47.5bn (£40.8bn) over the coming years – as much as £5 billion more than the UK's own estimates during negotiations.

Boris Johnson's spokesperson on Friday afternoon said the UK did not recognise the EU's figures after the bloc said €6.8bn (£5.84bn) would be due by the end of the year.

Speaking at a press conference in Brussels a European Commission spokesperson told reporters: "The report is final and the calculations were made in line with the withdrawal agreement.

"When it comes to 2021, [there is an] obligation for the United Kingdom to pay €6.8bn (£5.84bn), and of course, this will have to be done in two parts for this year.

"We have already informed the UK government about the payments that they have to do with regard to the first part of this year and they've already in fact paid part of the amount concerned.

"Therefore, we have absolutely no indications at this point in time that the bill, or the amount that we've calculated will be contested."

Asked what the process would be if the British government formally disputed the calculations, the EU spokesperson noted that a specialised financial committee existed in the withdrawal agreement, but added: "We don't expect an issue to arise.

"We're in contact with UK Government, the UK has started paying, I don't think we now need to go down the hypothetical route of what might or might not happen in the future."

They added: "These are legal obligations, just like any other part of the withdrawal agreement."

But back in Westminster a Downing Street spokesperson asked about the EU calculations told reporters: “We don’t recognise that figure. It’s an estimate produced by the EU for its own internal accounting purposes.

“For example, it doesn’t reflect all of the money owed back to the UK, which reduces the amount we pay.

“Our estimate remains in the central range of between £35 and £39 billion. And we will publish full details in parliament shortly.”

A UK government spokesperson had previously dismissed the calculations as inexact and “just an accounting estimate”.

The divorce bill is highly politically sensitive in the UK because some Brexiteers do not like the idea of sending money to the EU.

Mr Johnson himself previously said the EU could "go whistle" if they wanted a financial settlement, but abruptly changed his stance after it became clear a deal could not be done without one.

The bulk of the bill is to pay for projects signed up to the UK government, which ultimately accepted the principle that Britain should honour commitments it had made. It also covers the UK's share of EU debts over the last half a century of membership and includes costs such as pensions for EU officials.

Asked why UK and EU calculations appeared to differ, the European Commission spokesperson said: "It's really not for us to do an analysis of potential differences in figures between our official calculations and what some UK officials or experts might have calculated on their side. We issue the calculation and the relevant invoices related to that that is our role."

The tension over the figure comes amid a backdrop of the UK wanting to override or change parts of the Brexit agreement it signed to better suit its interests.

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