Osborne Claims 'Real Win' Over £1.7bn EU Bill

George Osborne has described his efforts to cut the surcharge Britain will pay towards the European Union budget as a "real win" after being accused by Labour of "trying to take the British people for fools".

The Chancellor and the Prime Minister claimed to have halved the UK's £1.7bn bill from the EU but critics said the reduction would have been achieved by bringing forward a rebate to which the UK would have been entitled anyway.

Mr Osborne and Mr Cameron have argued that it was not certain that the rebate would apply to the surcharge, which was demanded after a recalculation of Britain's gross national income relative to the other 27 member states, until the deal was struck in a summit with fellow EU finance ministers in Brussels.

The Chancellor defended their stance, saying: "Everyone said we were going to have to pay £1.7bn (but) instead we are going to have to pay half that so no-one should be in any doubt this is a real win for Britain."

He added: "It shows this Government can deliver for Britain in Europe.

Video: Cameron: 'Good News' On EU Bill

"Every time the Government sets out the goals it wants to achieve in Europe people say they're impossible to achieve.

"When we do achieve them, like cutting the European budget or getting out of the bailouts or now reducing this bill, people say that was inevitable. Well people shouldn't be in any doubt, it's a real win."

Labour has claimed the deal does not save the UK "a single penny", while the Chancellor's European counterparts also appeared to contradict his account of the deal.

Irish finance minister Michael Noonan said he believed that the UK "will pay the whole amount" while Dutch finance minister Jeroen Dijsselbloem said "it's not as if the British have been given a discount".

The European Commission's vice-president with responsibility for the budget, Kristalina Georgieva, said the additional contribution being demanded from the UK meant that its rebate was also increased, leading to a "downward correction" in the overall sum to be paid.

Shadow Chancellor Ed Balls said: "David Cameron and George Osborne are trying to take the British people for fools.

Video: A Surcharge Victory Or Just Spin?

"Ministers have failed to get a better deal for the British taxpayer. Not a single penny has been saved for the taxpayer compared to two weeks ago when David Cameron was blustering in Brussels.

"By counting the rebate Britain was due anyway, they are desperately trying to claim that the backdated bill for £1.7bn has somehow been halved. But nobody will fall for this smoke and mirrors.

"The rebate was never in doubt and, in fact, was confirmed by the EU Budget Commissioner last month."

UKIP leader Nigel Farage said: "Osborne (is) trying to spin his way out of disaster.

"Borrowing what we are rightfully owed in the future to pay an unfair bill being levied now is not a victory. It's a sham."

The bill is now due to be paid after the next General Election, rather than on 1 December as originally demanded by the EU.

11.46 | 0 komentar | Read More

Royal Mail In Stand-Off Over MPs' Inquiry

By Mark Kleinman, City Editor

Royal Mail has been secretly resisting pressure from MPs for it to appear alongside rival postal operators as part of a new probe into competition in the industry.

Sky News has learnt that Royal Mail made representations to the Business, Innovation and Skills (BIS) Select Committee requesting that it should not be forced to give evidence during the sale session as Whistl and UK Mail.

Sources said that Moya Greene, Royal Mail's chief executive, would appear before the Committee on 26 November, adding that the MPs had refused to bow to the company's desire for it to appear separately.

Royal Mail boss Moya Greene is due to appear before the BIS committee

The row is the latest development in Royal Mail's efforts to persuade politicians and regulators to commit to reforms that it says are necessary to protect the Universal Service Obligation (USO), which obliges it to deliver to every UK address for a fixed price.

"This decision might make good theatre but it won't make for good analysis of the issues," a source said on Friday.

The BIS Committee announced the launch of its inquiry in September following complaints from the privatised Royal Mail that its ability to meet its USO obligations is being undermined by the expansion plans of Whistl, the rebranded TNT Post.

Sky News also understands that Dave Ward, a senior official at the CWU union, has also been asked to appear before MPs this month, while Ed Richards, Ofcom chief executive, will give evidence in early December.

The hearings will mark the latest phase of an intensive period of lobbying by Ms Greene, who has been vocal in her criticism of the industry's regulatory regime.

Last month, she and her chairman, Donald Brydon, attended an Ofcom board meeting to warn that a review of postal markets planned for the end of next year must be accelerated to safeguard the USO.

Since listing on the stock market as part of its contentious £3.3bn privatisation last year, Ms Greene has complained that Whistl's expansion plans could cost Royal Mail £200m in lost revenue by 2017.

Ofcom is expected to decide whether to bring forward its assessment shortly.

Reiterating previous statements on the issue, a spokesman for the regulator said: "Protecting the universal service is at the heart of Ofcom's work, and our own evidence clearly shows that the service is not currently under threat.

"We are listening to the views of Royal Mail and other parties regarding competition in the market. We would assess any emerging threat to the service quickly, in the interests of postal users."

Royal Mail's shares have had a bumpy ride since last autumn's sale by the Government.

They initially surged, leading to accusations that Vince Cable, the Business Secretary, had cost the taxpayer £1bn by underpricing them.

However, the UK regulatory framework, an impending financial settlement with French competition authorities and the growing impact of greater competition - exemplified by Amazon UK's recent launch of a same-day delivery service - have weighed on Royal Mail shares in recent months.

On Friday, they were trading at just over 462p, down 20% during the last 12 months but exactly 40% higher than the price at which they floated last year.

Taxpayers continue to own 30% of Royal Mail, although there is little prospect of a sale of the remaining shares ahead of next year's General Election.

11.46 | 0 komentar | Read More