We’ll pay EU divorce bill till 2064

BRITAIn could be £5.8 billion a year better off within just four years of leaving the EU, despite the Brexit divorce bill, official figures showed yesterday.

In its first estimates on the costs of leaving the EU, the Office for Budget Responsibility (OBR) said curtailing UK contributions to the EU budget would free up huge sums that the Government could spend in other areas.

But the independent forecaster also warned that the taxpayer would end up paying into the EU’s coffers until 2064 as part of the controversial ‘divorce bill’ agreed by the Government last year. It said the total bill was likely to be £37.1 billion.

And it pointed out that at least some of the money freed up would continue to be spent on things that currently come via Brussels, such as farm payments.

Three-quarters of the divorce bill will be settled in the first three years after leaving the EU. But pension payments to Eurocrats will continue until 2064, although Chancellor Philip Hammond said these would be ‘very small’ by the end. The OBR said the UK would see what Brexiteers have declared a ‘Brexit dividend’ of £3.3 billion a year by 2022. It will rise to £5.8billion in 2023.

Mr Hammond was challenged by leading Eurosceptic Jacob Rees-Mogg to spell out if any money saved from EU contributions will be recycled into ordinary spending such as the health service.

The Chancellor distanced himself from any commitments, replying: ‘How we choose to use that money, what our priorities are, will of course be an issue for this Parliament.’