Britain's invoice for EU contributions will rise by £2.7billion due to the plunging worth of the pound, official figures have revealed.
The Authorities's spending watchdog, which calculated the hovering invoice in yesterday's Autumn Assertion, additionally stated the UK might be pressured to hold on paying into the Brussels price range even after Brexit.
The invoice shall be £200million larger this yr and can rise by £800milliion in 2018-19 and 2019-20 because of the falling worth of the pound, which hit a 30-year low within the wake of June's Brexit vote.
Britain's invoice for EU contributions will rise by £2.7billion due to the plunging worth of the pound, official figures have revealed
Britain's contribution to the EU price range is affected by fluctuating alternate charges as a result of it's paid in euros.
If the UK continues to be within the EU the next yr, the invoice will rise by £900million, the Workplace for Finances Duty predicts.
It means Britain faces having to pay a internet contribution to the EU of £13.four billion in 2020-21.
Alarmingly, the OBR stated Britain might nonetheless should pay into the EU's price range even after leaving.
It bases its forecast on Britain agreeing a 'bespoke association' with the EU that will see the UK persevering with to pay into the price range to retain entry to among the advantages of Europe's single market.
Britain may also should foot the invoice for its share of pension liabilities for EU workers and MEPs after reducing ties with Brussels.
The whole legal responsibility of EU pensions stands at an estimated £50billion, with annual funds at the moment at round £1.2billion.
Chancellor Philip Hammond, pictured with Theresa Might this morning on a go to to Bedfordshire, unveiled the OBR's fiscal outlook in his Autumn Assertion yesterday
Some 1,730 Britons at the moment make up almost eight per cent of the 22,000 retired EU officers.
It emerged final week that the EU's Brexit negotiating staff, run by the French ex-Fee vice-president Michael Barnier, is planning to cost Britain an EU divorce settlement of between £40-£60billion.
In addition to pension liabilities, these funds additionally relate to unpaid price range commitments to the EU, that are agreed years upfront, mortgage ensures and EU spending on UK-based tasks.
The OBR's fiscal outlook yesterday additionally predicted that internet migration is not going to fall under 100,000 even after Britain leaves the EU.
Its five-year forecast revealed alongside Philip Hammond's Autumn Assertion yesterday forecasts internet migration will solely fall barely because the UK adopts a tighter migration regime after Brexit.
However the change will not be adequate sufficient to hit the Tory Authorities's goal of lowering internet inward migration to the 'tens of 1000's' - even by 2021, it says.
If the forecasts are right, it can imply the Conservative social gathering's pledge to chop immigration to below 100,000 may have been missed for 10 years in a row.
The outlook additionally reveals immigration ranges would have been 80,000 per yr larger if Britain had voted to remain within the EU.
The Authorities's spending watchdog, which calculated the hovering invoice in yesterday's Autumn Assertion, introduced in Parliament by Philip Hammond, pictured, additionally stated the UK might be pressured to hold on paying into the Brussels price range even after Brexit
The autumn in immigration will hit tax revenues by a complete of £16billion by 2021, the OBR predicted.
In whole, Brexit will value the Treasury an estimated £58.7billion in misplaced tax receipts over the subsequent 5 years.
The figures led pro-EU MPs to demand the Authorities abandons plans to limit EU migration when it leaves the EU.
However the Chancellor Mr Hammond dismissed the calls and stated voters had despatched a transparent message within the EU referendum that they needed management on migration numbers.
He stated: 'The Prime Minister has made clear that we now have to just accept the choice of the British folks - not simply to depart the European Union however clearly implied in that call is the need to manage over motion throughout our borders.
'That isn't the identical as reducing ourselves off from Europe, it isn't the identical as turning our backs on Europe, however there must be management of the stream of individuals into the UK.
'So the problem is to get a deal that successfully permits our companies, our staff to promote their merchandise into Europe; European companies and staff to promote their merchandise into the UK whereas nonetheless assembly that political mandate that we have acquired from the British folks.'
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