Britain has negotiated a halving of a £1.7 billion budget surcharge it has to pay to the European Union after negotiations with EU officials, British finance minister George Osborne said today.

"Instead of footing the bill we have halved the bill, we have delayed the bill, we will pay no interest on the bill, if there are mistakes in the bill we will get our money back," Osborne told reporters in Brussels.

"It is a real result for Britain," he said.

He said Britain would pay the surcharge in two installments in the second half of next year.

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