Britain paid at least £650m in penalties to EU over last decade due to misspent funds by Government departments

UK has sixth highest level of so-called ‘disallowance’ payments of any country in the bloc, as a proportion of the funding it received, House of Commons Public Accounts Committee report reveals

Both Brexit and pro-Remain campaigners have used the report to support their stances (Getty)

Britain has paid back £2.70 in fines for every £100 it received from the European Union in funding for farming and rural development, according to a report by MPs.

Over the last decade, at least £650m worth of penalties have been incurred from the European Commission because Government departments wrongly spent EU funding, the House of Commons Public Accounts Committee (PAC) said.

Overall, the UK has sixth highest level of so-called ‘disallowance’ payments of any country in the EU, as a proportion of the funding it received, their report said.

Brexit campaigners called the findings evidence of an EU funding “racket”, but the pro-Remain camp said the report only served to highlight the billions of pounds in support Britain receives from the EU.

Meg Hillier MP, Chair of the PAC, said that money intended to support projects and programmes in the UK was being lost.

“The apparent lack of practical concern about this fact until recently will anger many people, whatever their views on Britain’s EU membership,” she said. “As a priority the Treasury and departments must identify the reasons they keep being penalised and take whatever action is necessary to rectify their mistakes.”

Vote Leave chief executive, Matthew Elliott, said: “‘We hand to £350 million pounds to Brussels every week. Some of that money does get sent back to the UK, but it is not necessarily spent on our priorities and it is laden with strict rules and conditions. Even worse, the EU often fines us if we don’t do exactly what Brussels says.”

James McGrory, Chief Campaign Spokesman for Stronger In, said: “As this report demonstrates, the UK benefits from billions of pounds of EU funding for our farmers, universities and small businesses, which would be lost if we leave.”