Tory Brexiteer Mr Redwood has hit back at suggestions Britain could cough up as much as £500billion to fill a black hole in the bloc’s coiffeurs.
Mr Redwood, chief global strategist at investment management firm Charles Stanley, stated it was not up to the UK to appease fall out over the funding gap and there was no treaty article to enforce it.
Earlier this week Guy Verhofstadt, the European Parliament's chief Brexit negotiator, suggested the exit cost to Britain could hit as high as £500bn.
Speaking on CNBC, the MP for Wokingham, said: “The Vote Leave campaign always said there was no need to pay a divorce bill, indeed there’s no legal power to do so for a British minister.
“The Treaty imposes no financial obligations on the departing member over and above their contributions up to the date of leaving and a British minister I don’t think could authorise an ex gratia payment to the European Union.
John Redwood said a British minister couldn't authorise a Brexit payment
The Vote Leave campaign always said there was no need to pay a divorce bill
“They would probably need primary legislation in the House of Commons and I think that would be quite difficult to secure.”
Sir Ivan Rogers, who quit last month as the UK’s top diplomat in Brussels, said a figure of €40 to €60bn for Britain was being “openly” discussed by the European Commission’s chief Brexit negotiator Michel Barnier and others.
But Mr Redwood batted away the suggestion the EU had to make it worst for Britain to be outside of the EU than in it.
He said: “I don’t see why we should have to pay it. You cite to me the treaty article that says you have to pay a lot of money to get out this club.
Nigel Farage has called for a shake-up after Sir Ivan Rogers' resignation
“I find it very odd because everybody tells me on the European side this is a wonderful thing to belong to, so surely it’s penalty enough in their terms that you’re no longer in it.
He said it was “not in their gift” for the European Union to penalise the UK for Brexit and that a “happy outcome” was possible. He added the most unfavourable outcome would be to convert to World Trade Organisation rules when it came to EU trade.
He said: “The worst that can happen to our trade is that we will trade with Europe as we trade with the rest of the world at the moment, as most favoured nation with relatively light tariffs and relatively light barriers.
“We’ve had very good progress through the WTO in getting barriers down between advanced countries and this is trade between advanced countries and actually we will make a big profit on the tariffs if we have to impose WTO tariffs, which of course UK government could rebate to business and people by way of tax cuts.”
BORDER-FREE Schengen: Countries you can visit WITHOUT a passport Mon, January 23, 2017
If you are an EU national, you do not need to show your national ID card or passport when you are travelling from one border-free Schengen EU country to another. The Schengen Area is an area comprising 26 European states that have officially abolished passport and any other type of border control at their mutual borders.
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Speaking to Newsnight on Monday, Mr Verhofstadt said: “What I know is the outstanding commitments now and before Britain will leave the European Union will in total be around €600billion (£513billion).
“That’s the reality and you can find in the accounts of the EU.”
Reacting to the inflammatory remarks, Gerard Batten MEP, Ukip's Brexit spokesperson, said: "He should be told to get lost.
Forty-four years of EU membership has cost Britain billions in direct contributions, billions in implementing thousands of EU laws, and the loss of our fishing industry untold billions more, to name just few of the staggering costs.
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