Some have raised the issue of the UK’s loans to Ireland, made at the point of transition from Labour to Coalition in 2010.
The Coalition decided to lend money bilaterally to Ireland so it was not part of an EU scheme, and offered no precedent for the UK in future having to join Euro area bail outs.
The loan reached a total of £3.2 billion when the final drawdown was made in September 2013. The money is repayable in instalments between April 2019 and March 2021. By September 2014 the UK had received £148 million in interest payments. The interest receipts are now running at £42 million a half year, and all payments have been made on time. The interest rate is a little higher than the UK government current ten year borrowing rate.
There is no reason to suppose anything will go wrong with this loan. The Treasury expects repayment on schedule. It established no precedent. I speak as someone one who was against it at the time, as I just felt the UK had to do everything to get its own borrowing requirement down.
I remain keen to ensure the Uk does not have to pay any of the costs of the unsuccessful Euro economic policies in the states that are suffering from their position in the currency. I also wish to see the UK enjoy tax cuts and lower borrowing by ending the huge payment we make yearly to the EU under our current membership.