House of Lords: Deal or no deal, the UK should honour its financial obligations

23 October 2019

The report argues that there would be serious implications for future negotiations with the EU and the UK's wider reputation if the UK did not honour the terms of the financial settlement.

While it would be difficult to enforce the UK's financial obligations in any international court or tribunal, the Committee notes that this does not mean that such obligations do not exist.

The Committee welcomes Government statements that the UK will always "pay its dues", and highlights indications from the EU institutions that negotiations on a future relationship will not start until the UK’s financial obligations are honoured.

Key findings

• Honouring the UK’s financial obligations is a matter of politics as well as law. Seeking to revisit the terms of the financial settlement could have implications for future negotiations with the EU and the UK’s wider reputation.
• While it would be difficult to enforce the UK’s financial obligations in any international court or tribunal, this does not mean that such obligations do not exist.
• Failure by the UK Government to honour the financial settlement would be received negatively by the EU. Statements by the EU institutions suggest that they are currently unwilling either to renegotiate its terms or to start negotiations on a future relationship until this issue is resolved.

Report: Brexit: the financial settlement 

© House of Lords