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European Union Committee
Brexit and the EU budget

15th Report of Session 2016-17 - published 4 March 2017 - HL Paper 125

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Contents

Summary

Chapter 1: Introduction

Brexit negotiations and the EU budget

The EU Committee’s work

Chapter 2: Background

The Government’s aims

Box 1: The Government’s 12 guiding principles

How the EU budget works

Revenue— ‘own resources’

Customs duties and levies

VAT-based contributions

GNI-based contributions

Rebates and corrections

Expenditure

The Multiannual Financial Framework (MFF)

The annual budget

The Common Provisions Regulation

Reste à liquider

The legal framework

Chapter 3: Potential demands

Introduction

Elements of a potential EU claim

Calculating the value of the UK’s current contribution

Table 1: UK gross contributions to the EU budget (£ million)

Table 2: UK receipts from the budget (£ million)

Table 3: UK Net contributions to the EU budget, including and excluding private sector receipts (£ million)

Currently committed spending

The MFF

Reste à liquider (RAL)

Pensions

EU assets

The European Investment Bank

The figures

Chapter 4: The UK’s legal obligations

What are the UK’s obligations?

The view from Brussels

General obligations

Pensions

Legal obligations arising under Article 50 TEU

Liabilities

Box 2: Article 70 of the Vienna Convention

Box 3: Article 5 of the Vienna Convention

Assets and receipts

Receipts

Pensions

Chapter 5: Future relationships

Sequencing

Ongoing access to EU programmes

EU R&D funding: European Added Value?

Purchasing market access

Table 4: Annual net financial contribution to the EU

The impact on the rest of the EU

Negotiating considerations

Appendix 1: List of Members and declarations of interest

Appendix 2: List of witnesses

Appendix 3: Advice by the Legal Adviser to the European Union Committee—The UK’s obligations under the EU Budget on withdrawal from the EU without a withdrawal agreement

Evidence is published online at http://www.parliament.uk/brexit-eu-budget-inquiry and available for inspection at the Parliamentary Archives
(020 7129 3074).

Q in footnotes refers to a question in oral evidence.

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