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EU budget: what is the UK’s cost and benefit from the Common Agricultural Policy?

The latest budget figures are for 2011 (Jan - Dec 2011). The 2012 figures have not yet been calculated.

In 2011, the UK contributed 11,273 million euro to the entire EU budget. Britain got back spending of 6,570 million euro, so that the British net contribution was 4,703 million euro. Looking at the whole budget, the UK received 6,570 out of 117,337 million (or 5.6% of total spending)

CAP spending in the UK in 2011 was 3,315 million euro. In the whole of the EU, CAP spending was 42,493 million euro, so the UK took 7.8% of the share of CAP spending. The UK therefore does a bit better than average for the CAP, gaining 7.8% of CAP spending compared to 5.6% of overall spending.

How much does the UK put in and how much does it get back? In 2011, the CAP was 42,493 million out of 117,337 million and represented 36.2% of EU spending. 36.2% of the UK gross contribution is  4,082 million euro. CAP spending in the UK (as mentioned above) was 3,315 million euro. So what we have is this:

EU budget 2011
UK contribution to CAP: 4.082 billion euro
UK receives from CAP: 3.315 billion euro
UK net contribution to CAP: 767 million euro
Divide the above figures by about 60 million and you have the average amount per person in the UK!

Of course, the new budget (which will be approved or rejected by the European Parliament tomorrow) changes these figures a bit. Exactly how much CAP will cost in the future and its costs or benefits for Britain are difficult to foresee. First, the new budget is cut by 5% overall, which means that the UK contribution goes down by 5% but so do receipts. Overall, CAP spending will go down by 20% and will be spread more evenly in favour of new member states from Eastern Europe. Although the UK contribution will be reduced by 5%, the UK benefit from the CAP will fall by well over 20% so in net terms of agriculture the UK will be worse off.

Posted on Tuesday, March 12, 2013 at 05:21PM by Registered CommenterDr Giacomo Benedetto | CommentsPost a Comment

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