§ Mr. Austin Mitchellasked the Chancellor of the Exchequer how much of the recent increase in the value added tax contribution to the EEC budget will be taken up by an increase in non-agricultural spending after allowing for the growth of own resources in real terms; and if he will publish in the Official Report a table showing the increase in EEC expenditure in real terms each year since 1979 in relation to the increase in United Kingdom Government expenditure.
§ Mr. Brooke[pursuant to his reply, 6 May 1986, c. 99]: The following table shows the increase (after allow ing for inflation) in VAT own resources payments and expenditure 485W other than that on agricultural guarantee between 1985 and 1986. The increase in expenditure is a little over 70 per cent. of the increase in VAT contributions.
million ecu* 1985 1986 Difference Expenditure other than on agricultural guarantee 8,478 †11,214 2,736 VAT own resources contributions‡|| 15,462 †19,240 3,778 * In 1985 prices assuming an EC10 inflation rate of 4.1 per cent, in 1986 (latest Commission estimate). † According to Council's second reading budget. ‡ Includes GNP contributions paid by Greece. ║ In 1985 part of the Community budget was financed by an IGA. Total VAT and IGA payments were 17,444 mecu. The difference between VAT payments in 1986 (in 1985 prices) and VAT plus IGA payments in 1985 was 1,796 mecu. The following table shows a comparison between increases in United Kingdom public expenditure and Community budget expenditure.
Annual percentage increase in United Kingdom public expenditure planning total in 1979–80 prices Percentage 1979–80 1.0 1980–81 0.5 1981–82 2.1 1982–83 1.9 1983–84 1.6 1984–85 3.5 1985–86* -2.6 1986–87† 0.1 * Estimate outturn. † Plans.
Annual percentage increase in Community expenditure in 1979 prices Percentage 1979 8.9 1980 0.7 19S1 -1.2 1982 4.2 1983 10.4 1984 6.9 1985 -1.7 1986 10.4 Note:
The growth rates for Community expenditure have been calculated from a current price series of Community spending deflated by the GDP deflator at market prices measured in ecu for a Community of Ten (source: European Economy). Community spending in 1985 is based on the payment appropriations in the 1985 budget. The 1986 figure is based on the 1986 budget as agreed at the Council's second reading. The United Kingdom GDP deflator at market prices was used in deriving the constant price growth rates for United Kingdom public expenditure.