Brown ‘caves in’ over UK rebate
The UK Treasury has failed to convince EU officials to allow the chancellor to claw back some of the EU rebate sacrificed by the Prime Minister.
In 2005, Tony Blair agreed to cut the UK’s rebate from the European Union’s budget by around 20 per cent, equivalent to £7 billion between 2007 and 2013.
The chancellor had, however, been seeking a “rebate on the rebate” and was attempting to reduce the amount given away by Mr Blair.
Last night, however, the Treasury conceded to rubber stamp the original deal. It is thought Mr Brown stepped down in order to persuade France to approve measures to combat a multi-million pound VAT fraud.
The deal negotiated by Mr Blair included lump sum refunds to four major net contributors to the European budget. Austria, Germany, the Netherlands and Sweden all received refunds because they pay more into the budget than they get out of it.
Mr Brown wanted to reclaim some of the UK’s contribution to the rebate but has now accepted the original arrangements and will pay its full share towards refunding the big net contributors.
Treasury officials insisted this would not mean any additional costs to the UK. “There are no changes to the position on our rebate beyond those agreed in 2005,” a spokesman added.
It is thought Mr Brown has strained his relations with EU officials in the past by criticising European economic performance, leading some to suggest they were never well disposed towards his latest economic demands.
The Conservatives have been highly critical of the move, accusing Mr Brown of “selling Britain down the river”. They claim UK taxpayers will end up paying for the rebate.
Shadow chancellor George Osborne said: “Gordon Brown’s disastrous week continues with this EU rebate bombshell. We discover, thanks to a leak, that he was planning to sign away yet more British taxpayers money to unreformed EU programmes like the Common Agricultural Policy.
“It was another sneaky attempt to keep the truth from the media, and another example of Gordon Brown’s stealthy methods backfiring.”
Mr Brown’s tough rhetoric on protecting Britain’s interests is a “sham”, shadow Europe minister Graham Brady argued. He predicted Mr Brown’s popularity would dip after “caving in” over the rebate.
The deal will be officially approved at a meeting of European ministers on April 23rd.
