The amount of money Britain spends on the EU is actually really small
LONDON - The government is sending out one of the most interesting mass-mail letters of the year: The annual breakdown of how much tax you paid, and what the government spent it on.
Everyone in the UK who pays tax receives a personalised copy, so that you can see how much the government took from you in total and how the government spent that, down to the penny. It includes the amount of cash that went to the European Union.
The government spent about £755 billion ($917 billion) in total last year, according to the most recent numbers from the Office for Budget Responsibility.
Here is what that looks like in percentage terms. Only 1.1% of all government spending goes on the EU:
Business Insider / HMRC
That 1.1% was the equivalent of about £8.5 billion in 2015, the most recent number available. While £8.5 billion is a lot of money on its own, it is a tiny portion of total spending.
Here is the same data presented a different way:
Business Insider / HMRC
The EU budget is an even smaller part of the UK economy as a whole, which had a GDP of £1.9 trillion ($2.3 trillion) in 2015. And, ironically given the anti-immigrant sentiment that drove the Brexit vote, the UK spends more on overseas aid than it does on the EU.
Having said that, £8.5 billion is money the UK will get to keep after Britain leaves the EU in 2019. It adds up to about £163 million per week - less than half the amount claimed by the Leave campaign (£350 million) prior to the vote that would be available for Britain to spend on the NHS every week.
Of course, while the country saves the £8.5 billion it sends to the EU, it will incur extra costs in the form of barriers and tariffs that Europe is likely to impose on trade with the UK. Those barriers will probably be in the region of £22 billion annually, according to estimates by Raoul Ruparel, an advisor to Secretary of State for Exiting the European Union David Davis.
- Some Tesla factory workers realized they were laid off when security scanned their badges and sent them back on shuttles, sources say
- I tutor the children of some of Dubai's richest people. One of them paid me $3,000 to do his homework.
- India not benefiting from democratic dividend; young have a Kohli mentality, says Raghuram Rajan
- Indo-Gangetic Plains, home to half the Indian population, to soon become hotspot of extreme climate events: study
- 7 Vegetables you shouldn’t peel before eating to get the most nutrients
- Gut check: 10 High-fiber foods to add to your diet to support digestive balance
- 10 Foods that can harm Your bone and joint health
- 6 Lesser-known places to visit near Mussoorie