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The amount of money the UK will pay as part of Brexit has been one of the main sticking points so far

November 29, 2017: The UK has offered a larger potential “divorce bill” to the EU – which could be worth between 40bn and 55bn euros (£35bn-£49bn), the BBC has reported.

The offer was communicated to Brussels after last week’s crucial cabinet meeting.  There has been no final agreement on a number but the larger offer was given a “broad welcome” by Brussels, she said.

No 10 has played down reports agreement has already been reached. The amount of money the UK will pay as part of Brexit has been one of the main sticking points in the first round of negotiations with the EU.

In September,  Theresa May suggested the UK was willing to pay about 20bn euros, and the EU has been calling for its offer to be increased.

The UK is hoping to move on to talking about trade but the EU will only do this when it deems “sufficient progress” has been made on three areas – the so-called divorce bill, the rights of EU citizens in the UK after Brexit and the Irish border.

What’s the bill for?

Brexit Secretary David Davis and EU chief Brexit negotiator Michel Barnier have been trying to reach a deal on the so-called divorce bill

The EU says the UK needs to settle its accounts before it leaves. It says the UK has made financial commitments that have to be settled as part of an overall withdrawal agreement.

The UK accepts that it has some obligations. And it has promised not to leave any other country out of pocket in the current EU budget period from 2014-20.

But the devil is in the detail.

There are also issues like pensions for EU staff, and how the UK’s contribution to these is calculated for years to come, and the question of what happens to building projects that had funding agreed by all EU members including the UK but which will only begin construction after the UK has left.

Large amounts of the EU’s budget are spent in two areas – agriculture and fisheries, and development of poorer areas.

Projects include business start-ups, roads and railways, education and health programmes and many others.

BBC