THE ALL-IMPORTANT DIVORCE BILL

BRITAIN will eventually pay between £35 billion and £39 billion as part of the so-called Brexit ‘divorce bill’ – provided the EU agrees to the future trade and transition deal the Prime Minister wants. The Government hailed the deal because the payment is much lower than had been expected:

PAYMENTS FOR A TWOYEAR TRANSITIONAL DEAL

About half of the divorce bill will cover British payments into the EU budget for a two -year transition period. Mrs May used her landmark Florence Brexit speech to announce her desire for a twoyear ‘implementation phase’ that will effectively keep the UK in the EU for two years after Brexit. Ministers believe the deal will offer certainty to British businesses and avoid a ‘cliff edge’. In order to remain part of the EU during the period, the UK will guarantee to make payments of between £14.9billion and £15.8billion to Brussels until 2020. The agreement will help the Prime Minister secure the transition deal she believes will make Brexit a success, while also silencing EU demands for a large bill. Brussels is happy because it will not have to overhaul its current multi-year budget that stretches into 2020 because the UK’s payments will continue as normal until it ends. Critically, Mrs May’s offer on the bill stands only if the bloc agrees to the transitional agreement in the final Brexit deal. VERDICT: WIN

MONEY FOR ‘OUTSTANDING LIABILITIES’

Britain will pay £ 20 billion towards EU spending projects and commitments that could run for decades after Brexit. The deal includes a commitment to pay between £7.9 billion and £8.8 billion towards the goldplated pension scheme enjoyed by eurocrats, a bugbear for Brexiteers. At £59,000, the average Brussels pension payout is more than twice the average UK salary. The agreement also includes a UK commitment to cover payments towards the bloc’s spiralling debt pile. P ayments, however, will be taken only as they arise for years to come – and in a boon to the UK, the EU has agreed not to add any additional liabilities that arise during the transition period.

This will anger Tory hardliners, but the Prime Minister had little option. The EU has made it clear that agreeing to fund the liabilities was a necessity or they would refuse to sign up to a trade deal. UK insiders say they had ensured ‘good value’ by going through the EU projects ‘line by line’ to ensure all payments were fair and accurate. VERDICT: COMPROMISE

PAYMENTS INTO EU FOREIGN AID SCHEMES

Britain will continue to contrib - ute to the EU’s foreign aid pro - gramme until 2020, when the current funding round ends. Like with the wider EU budget, minis-