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David Cameron to challenge EU’s demand for an extra £1.7bn David Cameron to challenge EU’s demand for extra £1.7bn
(about 11 hours later)
David Cameron is heading for a fresh showdown with Brussels after Britain was instructed to contribute another £1.7bn to the European Union budget.David Cameron is heading for a fresh showdown with Brussels after Britain was instructed to contribute another £1.7bn to the European Union budget.
The surprise demand for extra cash will fuel anger on the Conservative backbenches and will be used by Ukip as ammunition in next month's Rochester and Strood by-election.The surprise demand for extra cash will fuel anger on the Conservative backbenches and will be used by Ukip as ammunition in next month's Rochester and Strood by-election.
The €2.1bn surcharge - which is due on December 1 - is being levied because the UK economy has fared more strongly than other member states since 1995.The €2.1bn surcharge - which is due on December 1 - is being levied because the UK economy has fared more strongly than other member states since 1995.
The Prime Minister signalled his determination to challenge the extra fee. He met Mark Rutte, his Dutch counterpart, tonight during an EU leaders' summit in Brussels to discuss tactics. The Netherlands has also been told to make an extra payment to the Union's coffers.The Prime Minister signalled his determination to challenge the extra fee. He met Mark Rutte, his Dutch counterpart, tonight during an EU leaders' summit in Brussels to discuss tactics. The Netherlands has also been told to make an extra payment to the Union's coffers.
A Downing Street source told the Financial Times: “It's not acceptable to just change the fees for previous years and demand them back at a moment's notice.”A Downing Street source told the Financial Times: “It's not acceptable to just change the fees for previous years and demand them back at a moment's notice.”
The source added: “The European Commission was not expecting this money and does not need this money and we will work with other countries similarly affected to do all we can to challenge this.”The source added: “The European Commission was not expecting this money and does not need this money and we will work with other countries similarly affected to do all we can to challenge this.”
The surcharge has arisen from changes in the way the EU calculates member states' gross national income. According to preliminary calculations, Germany, France and Poland will all receive rebates.The surcharge has arisen from changes in the way the EU calculates member states' gross national income. According to preliminary calculations, Germany, France and Poland will all receive rebates.
Patrizio Fiorilli, a Commission spokesman, said: “Britain's contribution reflects an increase in wealth, just as in Britain you pay more to the Inland Revenue if your earnings go up.”Patrizio Fiorilli, a Commission spokesman, said: “Britain's contribution reflects an increase in wealth, just as in Britain you pay more to the Inland Revenue if your earnings go up.”
Mr Cameron yesterday urged his fellow leaders to resist a new request from the European Parliament's demands to increase spending across the Union.Mr Cameron yesterday urged his fellow leaders to resist a new request from the European Parliament's demands to increase spending across the Union.