§ Mr. Marlowasked the Chancellor of the Exchequer what is the current monthly rate of net contribution to the EEC bud- 316W get; and to what extent this will be recovered if there is a delay in settling the budget arrangements.
§ Mr. LawsonThe United Kingdom's net contribution to the Community budget depends upon the gross contribution arising from the operation of the own resources system, offset by receipts from the budget. However, as I explained in my reply to the hon. Member for Newham, South (Mr. Spearing) on 24 January—[Vol. 977. c.630–32]—VAT contributions in 1980 have been limited by the operation of the "twelfths regime" due to the lack of an adopted 1980 budget.
Total United Kingdom payments of own resources in the first two months of 1980 under these arrangements amounted to £331.6 million, which represents a monthly rate of payment of £165.8 million. Figures for United Kingdom receipts in 1980 are not available yet. The Prime Minister has made it clear that any measures to reduce the United Kingdom's net contribution must provide the full relief payable in respect of the 1980 budget within the financial year 1980–81.