UKIP economic spokesman Patrick O’Flynn said: “It is far from clear what actual reduction, if any, George Osborne has secured in this surcharge.
“If it does turn out that the Chancellor has been engaged in spin and is pretending the application of a rebate formula, which would have applied anyway, is a reduction secured by him then he will have dug himself into an even deeper hole.
“But even if we take him at face value, if he really thinks that paying the EU an extra £850million, on top of our existing record net contribution, constitutes a good deal for Britain then he must have taken leave of his senses. It is a rotten deal that presents UK taxpayers with an intolerable spectacle.
“With the Chancellor typically adding £100bn to the UK national debt every year because of his failure to bring borrowing under control, it is an outrage for him to blithely stick at least another £850m in advance on next year’s deficit in the form of more big cheques to Brussels."