CIPFA supports UK government claiming a fair share of EU assets

17-02-2017

CIPFA has welcomed the UK government's interest in claiming a share of EU assets when Article 50 is triggered.

While the EU will request that the UK meets a fair share of the liabilities accrued since 1973, CIPFA believes that the UK derives material and significant compensation as a major net funder for assets accrued over the same period.

Referring to €150bn shown on the EU's balance sheet, CIPFA CEO Rob Whiteman said:

"The EC’s financial position is clear in that it uses a full accrual accounting based on International Public Sector Accounting Standards that are in line with international good financial reporting practice. This replicates the UK government's own practice, though sadly not all individual EU member states have robust accounting and reporting practices for their own government finances.

"The EU's annual balance sheet therefore has been through an independent audit process and so provides a good basis on which the UK government can seek compensation for the assets accrued during UK membership of the EU.

"The UK has a strong negotiating position given that it has been a significant net contributor to EU finances.

"In asking for the UK to meet liabilities, EU negotiators must remember that there are two sides to a balance sheet."

ENDS

For media enquiries please contact David Stone on T: 020 7543 5830 or email E: david.stone@cipfa.org