Britain's contribution to the European Union budget this year will be €909 million less than planned because of a surplus in last year's EU budget and new economic data for VAT and customs revenue, a European Commission spokesman said yesterday.

Ewa Hedlund told a news briefing that Britain and Germany would be the main beneficiaries of an amended 2005 budget issued by the EU executive with a €3.3 billion overall reduction in revenues from member states.

Ms Hedlund said Britain's controversial annual rebate from EU coffers, financed by other member states, would fall slightly to €5.1 billion this year.

The announcement came in the midst of fierce wrangling among member states over the long-term budget for 2007-2013, in which the British and German contributions and the future of London's special rebate are major subjects of dispute.

The Commission said Germany would pay in €320 million less than planned this year and most member states would have to contribute slightly less than anticipated.

It added that Poland, the biggest EU newcomer, would be one of few countries required to pay more than expected to the common budget in 2005. Its contribution has been increased by about €268 million to €2.37 billion.

The lower-than-expected contributions were due to a €2.7 billion surplus on the 2004 budget and also to a surplus in the agricultural exports guarantee fund.