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Contact your local council and let them know about what's happened. Depending on whether you value the relationship with your neighbour it's entirely plausible that you could get away without paying anything. Afterall the old fence was functional.

As Paul said, it's a matter between neighbours. It's a bit dodgy that your neighbour has built the fence without your prior consent or input and simply expect you to pay for half of it. My dad is in the weldering/fencing business. It has happened on numerous occasions over the years where one...