London Daily

Focus on the big picture.
Tuesday, Sep 08, 2026

UK at loggerheads with EU again over £41bn Brexit ‘divorce bill’

UK at loggerheads with EU again over £41bn Brexit ‘divorce bill’

Brussels’ accounts reveal amount expected, but London says: ‘We don’t recognise that figure’
The government has rejected claims it owes the European Union £41bn for a Brexit “divorce bill”, even as it emerged the first payments have been made.

Brussels and Westminster reopened a dispute about the size of the bill, after the publication of the EU’s 2020 accounts revealed the European Commission expected €47.5bn (£40.8bn) from the UK, a sum higher than British estimates.

The prime minister’s spokesperson said: “We don’t recognise that figure. It’s an estimate produced by the EU for its own internal accounting purposes. It doesn’t reflect all of the money owed back to the UK, which reduces the amount we pay. Our estimate remains in the central range of £35bn-£39bn, and we will publish full details in parliament shortly.”

The £35bn-£39bn range was presented by British officials during the Brexit negotiations, while the government’s fiscal watchdog, the Office for Budget Responsibility, put the bill at €41.4bn (£37.1bn) in 2018.

Despite the outbreak of tensions, the commission said the UK had already begun to pay its bill. “There was one payment that was done in June … and there will be one in July, August and September. And then in September we will be sending another bill,” a commission spokesperson said. “So far everything that had to be done was done, so we have no indication whatsoever that the overall figure will be contested.”

The EU expects the UK to pay €6.8bn in 2021.

In the run-up to Brexit, the UK paid net annual membership fees of £8.1bn-£10.7bn (€9.5bn–€12.5bn) a year, which opened access to the European single market – an arrangement the government ceded in the name of sovereignty.

The Brexit divorce settlement consists of bills for EU infrastructure and social projects agreed by previous British governments, as well as pension and healthcare costs for retired EU staff, which accrued over the UK’s 47 years of membership.

British officials say the EU figure excludes money owed to the UK. The EU’s accounts, however, highlight sums Brussels expects to pay into British coffers. European officials expect to send €1.8bn to the UK, representing the British share of fines on rule-breaking companies, collected by the EU competition authority.

British officials also highlight the uncertainty of the Brexit bill, which includes liabilities that may never come due, for example countries defaulting on EU loans.

The argument continues despite the financial settlement agreed as part of the Brexit divorce deal between the EU and Boris Johnson in October 2019. Through the Brexit deal, the two sides settled on a methodology to calculate the bill, rather than a fixed sum. Until this month, the EU had never revealed its estimate.

The withdrawal deal also covered citizens’ rights, and the Northern Ireland protocol, which the UK government is now seeking to change.

The government is expected to publish a statement on EU finances next week, while the Brexit minister, David Frost, has promised parliament will see his plan on revising the Irish protocol before the summer recess.
Newsletter

Related Articles

0:00
0:00
Close
British Chambers of Commerce Calls for Business Rate Reform and Productivity Support
UK Farmers Warn Dry Summer Could Reduce Crop Yields and Push Up Food Prices
UK Rail Networks Hit by Widespread Delays After Major Signalling Failures
Matt Clifford Resigns as ARIA Chair After Conflict-of-Interest Scrutiny
UK and France Say Joint Border Operations Have Prevented More Than 48,000 Irregular Channel Crossings
UK Core Inflation Remains Above Expectations as Utility and Commodity Costs Stay Elevated
Jaguar Land Rover Considers Up to 4,000 UK Job Cuts Amid Automotive Industry Pressure
UK Government Pauses Local Authority Reorganisation for Legal Review
UK Public Borrowing Reaches £1.8 Billion in July, Adding Pressure Before Autumn Budget
Chancellor John Healey Puts Regional Devolution and Fiscal Discipline at Heart of UK Growth Plan
Counter-Terrorism Police Lead Salford Investigation After Two Teenagers Charged
UK Rejects Financial Reparations for Transatlantic Slavery
UK and Egypt Step Up Diplomacy Over Escalating West Bank Tensions
UK Pauses Council Reorganisation Across Four English Counties
Jaguar Land Rover Plans 4,000 Job Cuts in Major UK Restructuring
UK Unveils Planning and Regulatory Overhaul to Speed Infrastructure and Economic Growth
University of Bristol Opens £500 Million Innovation Campus
Families Give Evidence to Independent Review of Sussex Maternity Failures
Sweden Confirms Deportation of 458 British Citizens Over Post-Brexit Residency Rules
UK Launches £3 Million Challenge for Long-Duration Energy Storage
Reform UK Proposes £100 Billion in Spending Cuts and Brownfield Deregulation
Andy Burnham Warns Macron That EU Procurement Rules Could Hurt British Steel
Andy Burnham Faces Major Decision on Future North Sea Oil and Gas Drilling
SEND Support in England Projected to Reach One in 10 Pupils
England’s Housing Courts Struggle With Surge in No-Fault Eviction Cases
Violent Clashes Erupt in Portsmouth During Protest Against Asylum Processing
Three-Quarters of NHS Emergency Staff Report Regular Violence or Aggression
UK Considers Converting Female Prison Space for Male Inmates as Overcrowding Worsens
UK House Prices Record First Annual Decline in Nearly Three Years
UK Government Reassesses Policy Toward Israel Amid Calls for Diplomatic Shift
Reform UK Faces Police Scrutiny Over Alleged Foreign Donations Scheme
University of Bristol Opens £500 Million Temple Quarter Enterprise Campus
Online Bookmakers Accused of Privacy Breaches Through Cookie Consent Practices
Health Campaigners Urge UK Government to Abandon U.S. Pharmaceutical Agreement
Three-Quarters of UK A&E Staff Report Regular Violence or Aggression
Far-Right Demonstrations Target Portsmouth as Small-Boat Crossings Fuel Tensions
UK Records Hottest Summer on Record After Severe Heatwaves
UK Travellers Face Renewed EU Border Delays as Temporary Flexibility Ends
UK Rejects Calls to Pause AI Data Centre Expansion Despite Energy Concerns
UK Defence Figures Push for 3% Spending Target Amid Falklands Concerns
England Faces Rising Financial Pressure as Special Educational Needs Plans Surge
Metropolitan Police Consider Reform UK Probe Over Overseas Donations
Keir Starmer to Leave Parliament, Triggering By-Election
UK Treasury Weighs Windfall Taxes on Banks and Oil Companies Amid Bond Market Turmoil
Jaguar Land Rover to Cut Thousands of Jobs as UK Government Rules Out Bailout
OpenAI Unveils GPT-6 and Says: "We May Already Have Reached AGI"
Congressman Accused Andrew of Sex Crimes in the United States
Donald Trump: "I'm Glad Harry and Meghan Left the United States"
Spicy Food Is Linked to Lower Death Risk — but It Is Not a Miracle Cure
AfD Enters Saxony-Anhalt Election at 41% in Historic Test for German Politics
×