Shropshire Star

Shropshire and Mid Wales politicians split over £40 billion offer to EU

Politicians in Shropshire and Mid-Wales have given a mixed reaction to reports that the Government is set to offer £40 billion to the European Union to kickstart trade talks.

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North Shropshire MP Owen Paterson said the Prime Minister had made a generous offer in her speech at Florence in September when she agreed to pay £18 billion to cover Britain's obligations. He said it should not pay a penny more.

Daniel Kawczynski, MP for Shrewsbury and Atcham, said the Government would need to do a lot to convince the general public that such a payment could be justified when the schools and hospitals in the county were having to fight for the available cash.

However, Glyn Davies, the MP for Montgomeryshire, said Britain had a duty to honour its commitments to the European Union.

Councillor Shaun Davies, the Labour leader of Telford & Wrekin Council, accused Brexit supporters of failing to explain the true cost of leaving the EU during the referendum campaign.

Mr Paterson, a leading Eurosceptic, said while it was preferable to come to a mutually beneficial deal with the EU, the UK should not be held to ransom and should be prepared to walk away.

"I wouldn't offer them a penny until there is a serious solution on a final trade agreement," he said.

"The Prime Minister made a generous offer in Florence, and we will honour our legal obligation, and that generosity has not been reciprocated. In fact, they have been rather churlish and rude."

Mr Paterson said if the EU was not prepared to move the talks to free trade during the next round of discussions next month, then Britain should prepare to trade with the EU on World Trade Organisation terms.

"If then the EU wants to come back to us and talk about a free trade deal, that is fine, but we shouldn't pay a penny more," he said.

Mr Kawczynski also said he was far from convinced that Britain should be increasing the amount it pays to the European Union.

"If the Government is willing to pay all this money, it has got a lot of work to do in order to convince us, and the electorate, that this is in the interests of the United Kingdom," he said.

"Over the last four decades, Britain's total contribution has been over £400 billion.

"Whilst we in Shropshire have to fight for every penny for schools, hospitals and infrastructure, and I have to go in to bat for £130 million for the north-western relief road, all over Europe there are modern infrastructure payments being paid for by British taxpayers' money."

He said Britain would effectively need to borrow the £40 billion, as its outgoings still exceeded income. By contrast, other EU countries such as Poland were now paying off their debts, while still expecting Britain to pay up.

Montgomeryshire MP Glyn Davies said: "I have never been tied to a specific sum of money, the UK should meet its obligations.

"It is difficult to know the right figure, but I think if the Cabinet has decided it's in the interests of the UK to come up with this figure during negotiations, I find it difficult to disagree with that."

But he said any figure had to be about honouring Britain's existing negotiations, and said the Government should stand firm against any "unreasonable demands" from the EU.

Mr Davies said while he still thought it more likely than not that a deal would be struck in the end, he said the "no-deal" scenario now looked more likely than it did a few months ago.

"The progress so far has been quite slow, and there are the electoral difficulties in Germany which could mean there is another General Election quite soon."

Telford and Wrekin Council leader Councillor Shaun Davies said people who voted to leave the EU would be massively disappointed to find how much money would be spent on Brexit.

"This money could be spent on the NHS, local government or adult social care," he said.

"Many people will ask why people like Boris Johnson and Michael Gove didn't explain at the time of the EU vote what a devastating effect it would have on finances."

He said many companies in Shropshire had experienced workers from Eastern Europe returning home because of the uncertainty.

Mark Pritchard, MP for The Wrekin, said: "The bill needs to be as low as possible, whilst not causing any more unnecessary delay or uncertainty over Brexit. Employers and employees need clarity and certainty."

Telford MP Lucy Allan was unavailable for comment.