UK will now pay only £850m
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Osborne says UK's £1.7bn bill to EU will be 'halved'

The Chancellor has claimed victory in the stand-off with the European Union over its demand the UK pay £1.7bn, by next month.

George Osborne emerged from talks in Brussels earlier to announce the bill had been halved, and that it would be paid in two instalments next year - with no interest.

Labour called it smoke and mirrors and said the reduction was due simply to a scheduled rebate that would have been paid to the UK next year anyway.

Gavin Hewitt reports.

  • 07 Nov 2014
  • From the section UK
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