Below an update on the UK contributions to the EU budget
Source: House of Commons
The UK’s net contributions to the EU Budget since 1973 are shown in real terms in the chart. Gross and net contributions, and receipts from the Budget are shown in the table below.
As with other Member States, the UK’s gross contribution to the EU Budget is a function of VAT receipts, gross national income, customs duties and levies on sugar production. Uniquely among the Member States, the UK has benefitted from a rebate (‘abatement’) on its EU Budget contributions since 1985. This is calculated according to a formula which in essence used to mean that the UK’s net contribution was reduced by 66%, relative to what it would be without the abatement. However, certain elements from the Budget are excluded from the deduction, including EU overseas aid, and from 2009 non-agricultural expenditure in new Member States. This latter development, the effect of which was phased in up to 2011, largely accounts for the sharp increase in the UK’s net contribution.