London Daily

Focus on the big picture.
Friday, Feb 27, 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
UK Government Reaches Framework Agreement on Release of Mandelson Vetting Files
UK Police Contracts With Israeli Surveillance Firms Spark Debate Over Ethics and Oversight
United Airlines Passenger Hears Cockpit Conversations After Accessing In-Flight Audio Channel
Spain to Conduct Border Checks on Gibraltar Arrivals Under New Post-Brexit Framework
Engie Shares Jump After $14 Billion Agreement to Acquire UK Power Grid Assets
BNP Paribas Overtakes Goldman Sachs in UK Investment Banking League Tables
Geothermal Project to Power Ten Thousand Homes Marks UK Renewable Energy Milestone
UK Visa Grants Drop Nineteen Percent in 2025 as Migration Controls Tighten
Barclays and Jefferies Among Banks Exposed to Collapse of UK Mortgage Lender MFS
UK Asylum Applications Edge Down in 2025 Despite Rise in Small Boat Crossings
Jefferies Reports Significant Exposure After Collapse of UK Lender MFS
FTSE 100 Reaches Fresh Record Highs as Major Share Buybacks and Earnings Lift London Stocks
So, what's happened is, I think, government policy, not just under Labour, but under the Conservatives as well, has driven a lot of small landlords out of business.
Larry Summers, the former U.S. Treasury Secretary, is resigning from Harvard University as fallout continues over his ties to Jeffrey Epstein.
U.S. stocks ended higher on Wednesday, with the Dow gaining about six-tenths of a percent, the S&P 500 adding eight-tenths of a percent, and the tech-heavy Nasdaq climbing roughly one-and-a-quarter percent.
From fears of AI-fuelled unemployment to Big Tech's record investment, this is AI Weekly.
Apple just dropped iOS 26.4.
US Lawmakers Seek Briefing from UK Over Reported Encryption Order Directed at Apple
UK Business Secretary Calls on EU to Remove Trade Barriers Hindering Growth
Legal Pathways for Removing Prince Andrew from Britain’s Line of Succession Examined
PM Netanyahu welcome India PM Narendra Modi to Israel
Shadow Diplomacy: How Harry and Meghan’s Jordan Trip Undermines the Monarchy
Sir Jim Ratcliffe, co-owner of Manchester United, comments on immigration in the UK.
Bill Gates, the UN and the WEF are attempting to construct "a giant digital gulag for all of humanity" via digital ID, CBDCs and vaccine passport infrastructure.
Britain’s Channel Crisis: Paying Billions While the Boats Keep Coming
Downing Street’s Veteran Deception Scandal
UK HealthCare Expands ‘Food as Health’ Initiative Statewide to Tackle Chronic Illness in Kentucky
Leonardo Chief Says UK Set to Decide on New Medium Helicopter Programme
UK Slows Chagos Islands Agreement After Concerns Raised in Washington
European and UK Stock Markets Reach Fresh Highs as Banks and Miners Lead Rally
UK Government Insists Chagos Islands Negotiations Continue After Minister’s ‘Pause’ Remark
No Confirmed Deal for Engie to Acquire UK Power Networks Amid Market Speculation
UK Reaffirms Updated Entry Requirements for Travellers as of February 25, 2026
General Atlantic to sell equity stake in ByteDance, valuing the company at $550 billion
German Chancellor Friedrich Merz Secures Pledge from China for Greater Imports of Quality Goods
Lord Mandelson Condemns Arrest as Driven by ‘Baseless Suggestion’ He Would Flee Abroad
Former UK Ambassador Released on Bail Following Arrest in Epstein-Linked Investigation
UK Parliament Orders Release of Former Prince Andrew’s Government Vetting Files
Reddit Fined £14 Million by UK Regulator Over Failures in Age Verification Controls
UK Moves to Tighten Regulation of Netflix, Disney+ and Prime Video Under New Media Rules
British Woman Who Reported Rape in Hong Kong Faces Possible Prosecution
'Christianity is the religion that has made this country great.'
Man Receives Parking Ticket 38 Years After Offense: ‘City Officials Said It’s Legitimate’
Woman Receives Gift Card for Christmas – Discovers It Is ‘Worth’ 63,000,000,000,000,000 Pounds
UK Sanctions New Zealand Insurer Maritime Mutual Following Allegations Over Russian Oil Cover
Reform MP Danny Kruger Condemns UK’s ‘Unregulated Sexual Economy’ in Call for Tougher Controls
The Show Must Go On: Prince William and Kate Middleton Shine at the BAFTAs Amid Andrew’s Arrest
UK Sanctions Russian ‘Illicit Oil Traders’ After Email Blunder Exposes Sanctions Evasion Network
Russia Amplifies Baseless Claims That UK and France Plan to Arm Ukraine with Nuclear Weapons
UK Imposes Sanctions on Two Georgian Television Channels Over Alleged Russian Disinformation
×