With reference to the above mentioned EM which I submitted before Budget ECOFIN last week, I am writing to you to explain why, though regrettable, it was necessary to override scrutiny on this Amending Budget which Council adopted at Budget ECOFIN on 23 November.

  Preliminary Draft Amending Budget 7 (PDAB7) to the 2007 EC Budget together with its update letter will reduce the level of funding required from Member States in 2007 by €5.976 billion (or £4.013 billion). This reduces the UK's gross contribution to the 2007 EC Budget, after taking account of the abatement, by €1,021 million (£686 million). The EM provides further detail and explanation of the revision of forecasts for revenue and the need to decrease payment appropriations in certain budget lines.

  The Commission published PDAB7 on 7 November 2007, and the accompanying update letter was issued on 12 November 2007. Regrettably, and in spite of our best efforts, it was not possible to take account of the Committees' views in advance of the Council vote. Each year the equivalent amending budget is put forward quickly by the Presidency wishing to reduce the level of Member State funding as soon as possible and to the benefit of all Member States. Given that the return of unused funds is routine and in the UK's interest, I hope that the Committees will understand my reasons for supporting PDAB7. The Committee clerks were alerted to this issue.

30 November 2007