EU BUDGET NEGOTIATIONS AND THE UK REBATE

That this House expresses its support for the Government in its current negotiations on the EU budget; considers that the UK rebate remains necessary to counter the perverse fiscal transfer effects of the Common Agricultural Policy (CAP) and the excessive burden of contributions this imposes on the United Kingdom; notes that without the rebate, the United Kingdom's net contribution to the EU budget would be totally unacceptable; recalls that, even with its rebate, the United Kingdom has been a large net contributor to the EU budget to the equivalent of approximately two pence on the basic rate of income tax; believes that the time has now come for the CAP to be abandoned and agricultural policy to be repatriated to EU member states; recognises that this would lead to the EU budget being almost halved in size; and believes that in future net contributions to, or receipts from, the EU budget should be proportionate to the relative prosperity of the member states.