Written question asked by James Clappison (Conservative) on Tuesday, 19 October 2010, in the House of Commons. It was due for an answer on Friday, 22 October 2010. It was answered by Justine Greening (Conservative) on Friday, 22 October 2010 on behalf of the Treasury.

EU Budget

Question: To ask the Chancellor of the Exchequer what assessment he has made of the implications for his Department's policies of (a) the European Commission's recent proposals for reforms of the EU budget and (b) the likely effect of such proposals on the future of the UK budgetary rebate.

Answer: We welcome the Commission's focus on the need for reform of the Budget to support the EU's priorities—in particular economic growth. But the Review does not go anywhere near far enough on recognising the economic and fiscal context. We need to see a much stronger focus on prioritisation and where savings can be made. The UK will not support a new EU tax, and such proposals are a distraction from the key issues of how to reduce spending and best support the economy. The Prime Minister also made clear that we will not support any increase to the EU Budget in the next Financial Perspective.The document made no specific proposals on the UK abatement. The Government are committed to preserving the UK abatement.

Secondary information