My Lords, I am grateful to the noble Lord, Lord Davies, who has responded to this brief debate for Her Majesty’s Opposition. The Bill reminds us that, by working with partners, a better European settlement is possible. The revenue side of the budget is an area that receives much less interest, but is no less important, nor any less of a success for the UK, than the cut to the EU budget.
This Bill is the culmination of a two-year process. In 2013, the Prime Minister negotiated a deal for the multiannual financial framework which involved no new categories of own resources and no new taxes, and kept our rebate intact. For the first time, he achieved a cut in the multiannual financial framework.
Since then, there has been scrutiny—this pertains to what the noble Lord, Lord Davies, talked about—by the European Parliament and by the scrutiny committees of both Houses of this Parliament, not to mention
Statements and Questions in both Houses. The Council of Ministers agreed this ORD unanimously in May last year. On 23 June, the House of Commons passed this Bill and it finally falls to this House to give the Bill a Second Reading.
The noble Lord mentioned the constructive role that he hopes the Government will play in the EU. I can assure him that we will do so. He welcomed the cut in the overall budget and in particular the reallocation of money from the common agricultural policy to the structural funds. It is not as much as we wanted—13%—but the money went to the growth funds, which I think we all agree are a good thing. Within the common agricultural policy as well, we reallocated some money from Pillar 1 to Pillar 2, from subsidies to rural growth funds.
The noble Lord, Lord Davies, could not resist referring to the Budget and how we should manage the finances better, which is somewhat strange considering that, in the context of this Bill, the annual contribution doubled under the last MFF. His party gave away the rebate, which has cost this country €9 billion and a further €2 billion per annum.
The noble Lord asked whether we were driving the agenda in Europe. We are certainly able, and would like, to take an active part in Europe. We will pay attention to the five presidents’ group report and to the high-level group. I agree with him that we should move to growth and I think that the new Commission is pursuing much more of a growth agenda. We will certainly support that and we agree with it.
On research and development, I again agree with the noble Lord. It is worth noting that the Horizon 2020 project received a 38% increase in this MFF and British universities are particularly suited to take advantage of that fund. We also support Vice-President Georgieva’s better spending agenda, but I am afraid that I cannot tell the noble Lord when that report will be published. If I find out, I will certainly write to him and let him know.
On the noble Lord’s comments about being uninformed on the budget, I think we can all agree that it deserves closer scrutiny. There is a huge concern across Europe that we should spend a lot of time trying to identify the structural weaknesses, and we should definitely increase scrutiny. He mentioned that EU officials should be summoned to the scrutiny committee of your Lordships’ House. Sir William Cash explicitly mentioned in the House of Commons that the Commons committee already can summon EU officials. I agree that the EU Scrutiny Committee should also be able to.
The overall message we are giving with this ORD is that if we are tightening our belt at home, we should not spend more through the EU; and we are not, thanks to the Prime Minister’s historic deal. Within the smaller overall MFF, expenditure has been reoriented toward areas that provide higher value for money to the UK taxpayer—high-value research and development, universities and other pro-growth investment. The Government’s task, on which I know this House will hold us to account, is to deliver on that deal.
We strongly welcome Vice-President Georgieva’s budget—and I have just had some information. The first working-level meeting will take place in September.
The initiative aims to develop a more performance-oriented budget which delivers tangible results. We have held a discussion with the Commission and offered technical assistance. The precise timing and scope of the review is not yet known, but rest assured that we will push for maximum value for money in the context of this review.
In 2013, we achieved real, historic change. We got a good deal for the United Kingdom. We proved that we can achieve reform in Europe and we protected our interests. This historic agreement will be formalised with the passing of the Bill, which I commend to the House. I ask that the House give the Bill a Second Reading.
Bill read a second time. Committee negatived. Standing Order 46 having been dispensed with, the Bill was read a third time and passed.