Debate on the future of fishing after 2026
A debate on the future of fishing after 2026 introduced by Robert Lowe MP is due to take place on 5 November 2024 in Westminster Hall.
The financial settlement - often labelled the 'exit bill' or 'divorce bill' - sets out how the UK and EU are settling their outstanding financial commitments to each other. This briefing covers the settlement in detail including the settlement’s origins, negotiations and the legal form it takes in the Withdrawal Agreement.
Brexit: the financial settlement - in detail (1 MB , PDF)
This briefing was last updated in December 2020 and will no longer be updated. The data included in it are no longer the most recent but the explanation of the settlement and negotiations are still valid. It is the Library’s most detailed explanation of how the financial settlement operates.
A shorter briefing Brexit: the financial settlement – a summary covers what the settlement and how much might cost and payments that have been made. The summary briefing was updated in July 2024.
In the financial settlement (the settlement), the UK and EU have set out how they will settle their outstanding financial obligations to each other. The obligations arise out of the UK’s participation in the EU budget and broader aspects of its EU membership.
The settlement says which financial commitments will be covered, the methodology for calculating the UK’s share and the payment schedule. The settlement is part of the Withdrawal Agreement, which is the legally binding treaty setting out the negotiated terms of the UK’s departure from the EU.
There is no definitive cost to the settlement. The final cost to the UK will depend on future events such as future exchange rates and EU budgets. The Office for Budget Responsibility estimate that the net cost to the UK may be £34 billion.
The UK and EU agreed some principles for the settlement:
Broadly speaking, the settlement can be split into three components:
Not everything in the settlement fits neatly into these three components. For instance, the UK has agreed to continue to contribute to the EU’s main overseas aid programme – the European Development Fund – until the current programme ends. This programme is funded directly by Member States, rather than through the EU budget. The UK’s contribution counts towards its commitment to spend 0.7% of national income on overseas aid.
Brexit: the financial settlement - in detail (1 MB , PDF)
A debate on the future of fishing after 2026 introduced by Robert Lowe MP is due to take place on 5 November 2024 in Westminster Hall.
A Westminster Hall debate has been scheduled for 2.30pm on 23 October on the regulation and financial stability of water companies. The debate will be opened by Tim Farron MP.
There will be a debate in Westminster Hall on Tuesday 22nd October on support for pubs and the hospitality sector.