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HomeNewsBritain Agrees to Subsidise Poorer EU States in PM’s ‘Reset’

Britain Agrees to Subsidise Poorer EU States in PM’s ‘Reset’

Andy Burnham has promised to grasp a Brexit “reset” agreement “with both hands”, despite plans to direct UK taxpayers’ money towards poorer EU countries as part of the price for closer cooperation.

The Prime Minister said the package he is expected to approve at a Brussels summit on 20 November could provide “an opportunity to add to UK growth”.

Mr Burnham is seeking agreements on food and agriculture, electricity trading and youth “free movement” when he meets EU leaders later this month.

However, growing concern is being voiced over the financial and political concessions the Prime Minister may make in pursuit of stronger links with the bloc.

Draft papers circulated before the Brussels meeting indicate that the Government is preparing to contribute to EU development programmes.

The proposed payments would help secure access for British energy firms to trade more freely within the EU’s electricity single market, according to reports.

Ministers are also facing pressure to reduce university tuition fees for students from European countries.

At the same time, as many as 80,000 young EU citizens could be permitted to enter the UK annually after reports suggested ministers had softened their position on Brussels’ demand for a higher limit.

Andy Burnham has vowed to seize a Brexit 'reset' deal 'with both hands' - as he prepares to funnel taxpayers' cash to poorer EU states as the price of an agreement

Andy Burnham has pledged to seize a Brexit “reset” agreement “with both hands”, while preparing to send taxpayers’ money to poorer EU states as part of the deal

The Prime Minister claimed a package he is poised to sign off with European Commission president Ursula von der Leyen on 20 November would be an 'opportunity to add to UK growth'

The Prime Minister said an agreement he is expected to sign with European Commission president Ursula von der Leyen on 20 November could create “an opportunity to add to UK growth”

Speaking to broadcasters in Antigua, where he was attending the Commonwealth Heads of Government Meeting, Mr Burnham defended his plans for a Brexit reset.

Asked whether it was acceptable for the UK to adopt EU food-trade rules without having a direct say in creating them, the Prime Minister said: “What’s facing me two weeks on Friday is a UK-EU summit where I have the opportunity to add to UK growth.

“It’s estimated up to 0.4 per cent extra on GDP. I think people in Britain would expect me to take that with both hands, given where we’ve been in recent times, and that’s what I’m doing.

“We’re not in the EU, therefore, we do have to work with them in a different way.

“But if that can get growth, help our farmers and remove red tape from British businesses, I think most people would expect me to attend that summit and negotiate the best deal that I can.”

Ahead of the 20 November meeting, EU member states are reportedly examining a 200-page draft sanitary and phytosanitary, or SPS, agreement. Under the proposal, the UK would follow EU rules covering food safety, animal welfare and plant health.

Draft agreements covering emissions trading and a “youth experience scheme” are also understood to be circulating, alongside a 15-page joint declaration prepared for EU leaders.

The proposed UK-EU statement reportedly explains how British taxpayers’ funds could be used for projects including roads, airports and renewable energy infrastructure in less prosperous EU member states.

It reportedly says: “We agree that the UK’s participation in parts of the EU’s internal market requires an appropriate level of financial contribution towards reducing economic and social disparities between the regions of the EU that reflects the degree of the UK’s participation in the EU’s internal market.”

The Prime Minister could also commit up to £450million a year to provide European students with reduced tuition fees at universities across the UK.

Since Brexit, EU students in the UK have been charged higher international fees of between £11,400 and £38,000 a year for undergraduate courses. This is compared to the lower domestic rate for British students of £9,790 a year.

But Brussels is determined to see EU students pay the same rate as British students while they study in the UK.

It has also been reported that between 75,000 and 80,000 18 to 30-year-olds a year will be able to travel to the UK from the EU for up to three years under a proposed youth mobility scheme.

The proposed annual cap is said to be significantly higher than a figure of 50,000 previously offered by the UK’s negotiators.

Furious Brexiteers have warned against Mr Burnham’s Brexit ‘reset’ leaving Britain as a ‘rule-taker’, as fears grow that the Government will ‘surrender’ the freedoms won by leaving the EU.

Speaking at a rally in central London on Tuesday, Tory leader Kemi Badenoch said: ‘The reason why we left the EU was so we could make our own rules.

‘But if what the Government is signing up to is just following EU rules, then what was the point of leaving?

‘They are too scared to actually use the Brexit freedoms that we have.’

A Government spokesman said: ‘We do not comment on leaks or provide a running commentary on live negotiations.

‘We are building an ambitious, close relationship with the EU that will strengthen our economy, protect British industry, and create more opportunities for young people across the UK.’