HC Deb 04 February 1987 vol 109 cc668-70W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he will bring up to date the figures given in his written answer dated 13 May 1985, Official Report, column 28, to the hon. Member for Great Grimsby concerning the United Kingdom contribution to the EEC budget, together with his forecast for 1987.

Mr. Peter Brooke

Since my hon. Friend the Economic Secretary's reply of 13 May 1985, at column 28, the Commission has again revised the figures for the 1 per cent. yield from the VAT base for the years 1982 to 1984. The new information for these years and the updated information requested is set out in the table. Information concerning 1987 has been derived from the Commission's revenue estimates contained in the 1987 draft budget.

Mr. Brooke

The information requested is set out in the table. An estimate of the United Kingdom's net contribution in 1987–88 is contained in pages 68 to 71 of the public expenditure White Paper (Cm. 56-II). An estimate for the United Kingdom's contribution to the Community budget in 1987 will be provided in the "Statement on the 1987 Community Budget" which will be published shortly after a budget for 1987 has been adopted.

£ million
1983 1984 1985 11986
Gross Payments 2,976 3,204 3,940 4,261
Receipts other than negotiated refunds/abatements 1,522 2,020 1,905 2,378
Refunds/abatements 807 528 227 1,557
Net contribution 647 656 1,808 326
1 estimated.

SourceDepartmental records.

Notes

  1. 1. For all years sterling figures reflect payments made during the year, not payments in respect of particular budgets. The 1986 net contribution is the estimate contained in the "Statement on the 1986 Community Budget" (Cmnd 9907) published in October 1986.
  2. 2. Since 1985 negotiated refunds have been replaced by an abatement of the United Kingdom's VAT contributions. The 1985 budget contained a flat rate VAT abatement for the United Kingdom of 1,000 mecu (£605 million), payable in respect of the United Kingdom's contribution in 1984. £166 million of this was received by the end of December 1985. The balance, £439 million, was received in the first few days of January 1986. The delay in payment reduced the 1986 net contribution figure and increased that for 1985. During 1985 the United Kingdom also received some £61 million in final payment for the refunds negotiated in respect of the United Kingdom's excessive net contribution to the 1983 Community budget.

Mr. Gould

asked the Chancellor of the Exchequer, whether he will publish in the Official Report a table updating the information give in table 1 in the sixth report from the Select Committee on European Legislation, Session 1983–84, HC 78-vi, concerning the principle components in United Kingdom payments and receipts from the European Economic Community.

Mr. Brooke

The information requested concerning the outturn for the calendar years 1983 to 1985, together with an estimate for 1986, is given in the table.

Principal Components in United Kingdom payments to and receipts from the EEC 1983 to 1986
1983 1984 1985 11986
VAT rates (per cent.)
Community VAT ceiling 1.0 1.0 1.0 1.4
UK VAT rate 0.9980 1.0 1.0 0.67663
FRG VAT rate 1.33697
Other states VAT rate 1.39996
Payments (£ million)
VAT own resources including VAT adjustments and before abatements 1,669 1,665 2,091 2,698
Sugar and Isoglucose levies 44 61 55 51
Agricultural levies 188 202 134 153
Customs duties 1,075 1,276 1,291 1,359
Intergovernmental agreement 1984 — — 2119 —
Intergovernmental agreement 1985 — — 2250 —
Total Gross contribution 2,976 3,204 3,940 4,261
Receipts
EAGGF4 1,071 1,317 1,187 1,431
Regional Development Fund 140 183 274 335
Social Fund 128 282 256 387
Other receipts 183 238 188 225

1983 1984 1985 11986
Net payments before UK Negotiated refunds 1,454 1,184 2,035 1,883
Negotiated refunds/VAT abatements3 807 528 227 1,557
Net payments after negotiated refunds/VAT abatements 647 656 1,808 326
Source: departmental records.
1 Forecast for 1986 as in the "Statement on the 1986 Community Budget", Cmnd. 9907.
2 Payments by the United Kingdom under the two intergovernmental agreements were both made in the 1985 calendar year.
3 Since 1985 negotiated refunds have been replaced by abatement of the United Kingdom's VAT contributions. The 1985 budget contained a flat rate abatement for the United Kingdom of 1,000 mecu (£605 million), payable in respect of the United Kingdom's contribution in 1984. £166 million of this was received by the end of December 1985. The balance, £439 million was received in the first few days of January 1986. The delay in payment reduced the 1986 figure and increased that for 1985. During 1985 the United Kingdom also received some £61 million as final payment for the refunds negotiated in respect of the United Kingdom's excessive net contribution to the 1983 Community budget.
4 EAGGF = European Agriculture Guidance and Guarantee Fund.