UK faces demands to subsidise poorer EU states as part of PM's 'reset'

Andy Burnham has promised to grasp a Brexit “reset” deal “with both hands” as Brussels presses the UK to direct taxpayers’ money towards poorer EU countries.

The Prime Minister said the package he is expected to approve at a Brussels summit on 20 November would provide an “opportunity to add to UK growth”.

He hopes to conclude agreements covering food and farming, electricity and youth “free movement” when he meets EU leaders later this month.

However, concerns are mounting over the concessions Mr Burnham may be prepared to make in pursuit of closer relations with the bloc.

Draft documents circulated before the Brussels summit reportedly show the EU urging the Government to contribute to its development programmes.

The payment would be linked to allowing British energy companies to trade freely in the EU’s single electricity market, it has emerged.

The Government is also facing calls to reduce tuition fees for European students attending British universities.

At the same time, as many as 80,000 young EU citizens could be permitted to enter the UK each year after reports that ministers have accepted Brussels’ demands for a higher annual limit.

Andy Burnham has vowed to seize a Brexit 'reset' deal 'with both hands' - as he faces Brussels demands to funnel UK taxpayers' cash to poorer EU states

Andy Burnham has promised to grasp a Brexit “reset” deal “with both hands” as Brussels presses for UK taxpayers’ money to be directed towards poorer EU states

The Prime Minister claimed a package he is poised to sign off with European Commission president Ursula von der Leyen on 20 November would be an 'opportunity to add to UK growth'

The Prime Minister said the package he is expected to approve with European Commission president Ursula von der Leyen on 20 November would provide an “opportunity to add to UK growth”

Speaking to broadcasters in Antigua, where he was attending the Commonwealth Heads of Government Meeting, Mr Burnham defended his plans for a Brexit “reset”.

Asked whether it was acceptable for the UK to follow EU food-trade rules without having a say in setting them, the Prime Minister said: “What is before me two weeks on Friday is a UK-EU summit where I have the opportunity to add to UK growth.

“It is estimated that this could add up to 0.4 per cent to GDP. Given where we have been in recent times, I believe people in Britain would expect me to seize that opportunity with both hands, and that is what I am doing.

“We are not in the EU, so we have to work with it in a different way.

“But if this can boost growth, support our farmers and cut red tape for British businesses, I think most people would expect me to attend the summit and negotiate the best deal possible.”

Ahead of the 20 November summit, EU member states are reportedly being shown a 200-page draft sanitary and phytosanitary agreement. Under the proposed pact, the UK would follow EU rules covering food safety, animal welfare and plant health.

Draft agreements on emissions trading and a “youth experience scheme” are also being circulated, alongside a 15-page joint statement intended for EU leaders.

The draft UK-EU statement reportedly outlines how British taxpayers’ money could help fund roads, airports and green-energy projects in poorer parts of the bloc.

“We agree that the UK’s participation in parts of the EU’s internal market requires an appropriate level of financial contribution towards reducing economic and social disparities between the regions of the EU that reflects the degree of the UK’s participation in the EU’s internal market,” it reportedly says.

The Prime Minister could also agree to spend up to £450 million a year allowing EU students to access reduced tuition fees at British universities.

Since Brexit, EU students in the UK have generally paid international fees of between £11,400 and £38,000 a year for undergraduate courses. British students, by comparison, pay the lower domestic rate of £9,790 a year.

Brussels is seeking an arrangement under which EU students would pay the same fees as British students while studying in the UK.

Reports also suggest that between 75,000 and 80,000 EU citizens aged 18 to 30 could travel to the UK each year for stays of up to three years under a proposed youth mobility scheme.

The proposed limit would be considerably higher than the annual figure of 50,000 previously offered by UK negotiators.

Furious Brexiteers have warned that Mr Burnham’s “reset” could leave Britain as a “rule-taker”, amid growing fears that the Government will surrender freedoms gained by leaving the EU.

Sir Jacob Rees-Mogg, the former Tory Cabinet minister, told the Mail that the Government appeared to be “taking us back into the EU without telling anyone”.

He said “people will be absolutely furious” when the cost of the “reset” becomes clear, accusing ministers of having “caved in” to EU demands over free movement, dynamic alignment and financial contributions.

The package being prepared by Labour ministers, he added, “will remind us why we hate the EU”.

Speaking at a rally in central London on Tuesday, Tory leader Kemi Badenoch said: “The reason we left the EU was so that we could make our own rules.

“But if the Government is simply signing up to follow EU rules, then what was the point of leaving?

“They are too frightened to use the Brexit freedoms we secured.”

Whitehall sources stressed that the draft UK-EU joint statement had not been agreed. They said it was an initial document prepared by EU negotiators while discussions continued.

A Government spokesman said: “We do not comment on leaks or provide a running commentary on live negotiations.

“We are building an ambitious and close relationship with the EU that will strengthen the economy, protect British industry and create more opportunities for young people across the UK.”

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