§ Mr. Spearingasked the Secretary of State for Foreign and Commonwealth Affairs if he will tabulate in the Official Report for each year since the commencement of the system of funding the European Community by its own resources the percentage of value added tax levy made by the European Community, the sums derived from United Kingdom value added tax and other named sources, respectively, transferred each year together with the total so transferred, the estimated amounts for 1983 should the full entitlement of 1.5 per cent. be levied, and his estimate for 1984 of the sum needed to pay each additional 0.1 per cent. together with the basis of the calculation.
§ Mr. RidleyI have been asked to reply.
Member states have paid VAT own resources since 1979. The VAT rate since then is shown in the following table. The table also shows payments by the United Kingdom of VAT and other own resources since then.
United Kingdom own resources contribution VAT rate VAT own resources Customs duties Agricultural levies Total £million £million £million £million 1979 0.7889 844 868 246 1,958 1980 0.7322 741 861 260 1,862 1981 0.8667 1,095 861 221 2,177 1982 0.9248 1,554 1,002 307 2,863 1983* 0.98 1,605 1,104 228 2,937 * (Estimate). The VAT rate is subject to a 1 per cent. limit. Each 0.1 per cent. increase in VAT would currently add some £170 million to the United Kingdom's contribution.