The European Union (EU) uses national accounts data for a number of administrative and economic purposes. Gross national income (GNI) is one of the four measures used by the EU and is calculated in accordance with the European System of Accounts. GNI is used to set the EU budget and to calculate part of member states’ contributions to the EU budget and is based on the European System of Accounts 2010: ESA 2010.Back to table of contents
Table 11.1 shows payments flowing between the EU and the UK. The first part of the table shows the payments flowing into the UK in the form of EU expenditure. The second part of the table shows the UK contribution to the EU budget, which depends on UK GNI. An explanatory note detailing GDP, GNI and the UK’s contribution to the EU budget was published on 8 September 2015.Back to table of contents
The convergence criteria for Economic and Monetary Union (EMU) are set out in the 1992 Treaty on European Union (The Maastricht Treaty). The Treaty, plus the Stability and Growth Pact, requires member states to avoid excessive government deficits – defined as general government net borrowing and gross debt as a percentage of gross domestic product (GDP). The Treaty does not determine what constitutes “excessive”. This is agreed by the Economic and Finance Council (ECOFIN).
Member states report their planned and actual deficits and the levels of their debt to the European Commission. Data to monitor excessive deficits are supplied in accordance with EU legislation.
The UK submitted the estimates in Table 11.a to the European Commission in October 2017.
Table 11.a: UK Government deficit and debt, financial year ending 2011 to financial year ending 2017, UK
|2010 to 2011||2011 to 2012||2012 to 2013||2013 to 2014||2014 to 2015||2015 to 2016||2016 to 2017|
|General government deficit|
|Net borrowing (£ billion)||142.0||123.8||124.2||100.1||91||75.8||45.5|
|As a percentage of GDP||8.9||7.5||7.3||5.6||4.9||4.0||2.3|
|General government debt|
|Debt at nominal value (£ billion)||1,214.5||1,349.7||1,425.6||1,522.5||1,604.0||1,652.0||1,720.0|
|As a percentage of GDP||75.9||82.3||83.8||85.8||86.7||86.8||86.8|
|Source: Office for National Statistics|