Member-only story
Grossly Wrong
During the 2016 EU referendum, a central figure underlay the Vote Leave campaign. It was used in their leaflets, in campaign broadcasts, in television interviews, and in large lettering on the side of their battle bus:
We send the EU £350 million per week; let’s fund the NHS instead.
This article examines some arguments made in defence of the misleading ‘£350m a week’ claim. Whether any politician has ‘lied’ about this matter is beyond the scope of my article.
What actually happens
In a reiteration of my article in September, there are four figures to discuss when talking about the UK’s EU contribution:
- Pre-abatement gross contribution: If the abatement did not exist, this would be the amount the UK government sends to the European Union;
- Post-abatement gross contribution: This is the actual amount the UK government sends to EU institutions;
- Net contribution (after public sector receipts): This amount reflects the direct effect of EU membership on UK government finances;
- Net contribution (after public and private sector receipts): This amount reflects the direct of EU membership on the UK economy.
These figures have different uses. However, the amount we “send the EU” is the post-abatement gross contribution.
Despite its name, the EU does not send the ‘rebate’ back to the UK: it is deducted based on the size of last year’s contribution.