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Annual European Union Finances Statement

21 July 2022

Proposing MP
Simon Clarke Con
Middlesbrough South and East Cleveland
Type
Written Ministerial Statement
Department
Treasury
View on Parliament.uk -->

At a Glance

Issue Summary

The statement provides an update on the implementation of the Withdrawal Agreement and Trade and Cooperation Agreement between the UK and EU.

Action Requested

Mr Clarke is laying before Parliament the 'European Union Finances Statement 2021' covering financial details up to December 2021, including an updated government estimate of the financial settlement. The statement also outlines the status of EU Programme association and forecasts outstanding liabilities for future years.

Key Facts

  • This is the 41st edition of the annual European Union Finances Statement.
  • The cut-off date for reporting in this year's document is December 2021.
  • As of April 2022, the UK received an invoice with a single net liability of €3.4 billion (£2.9 billion).
  • HM Treasury estimates the current net value of the financial settlement at £35.6bn.
  • The forecast outstanding liabilities from January 2022 onwards are estimated to be €29 billion (£24.6 billion).
  • The total cost estimate for participating in Horizon Europe, Euratom R&T and Fusion4Energy, and Copernicus over the 7-year MFF is around £17 billion.
  • The latest liability estimate has increased from £35-39bn to £42.5bn primarily due to changes in discount rates and inflation assumptions.
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