UK’s contributions to EU budget set to increase due to economic downturn

:UK’s contributions to EU budget set to increase due to economic downturn 

Open Europe 06-Dec-13 

The Telegraph reports that the latest OBR forecast for the UK’s net contribution to the EU budget is to increase by a cumulative £10bn between 2013-14 and 2017-18. £4.9bn of the increase is “spending neutral”, due to a change in how EU aid contributions are accounted for. However, the rest of the increase reflects lower than expected VAT revenues and customs duties across the EU due to the economic downturn, which will increase direct national contributions. Open Europe’s Christopher Howarth is quoted as saying, “That the UK’s contribution is set to increase is disappointing - but it was always a possibility given the way the EU budget works. This is why it was so important to secure the cut in overall spending levels up to 2020, although much of the budget remains wasteful and irrational.”