§ Mr. Deakinsasked the Chancellor of the Exchequer what, under the new system agreed by Heads of Government for United Kingdom budget contribution to the EEC, would be the impact on the United Kingdom gross and net contribution, respectively, of the increases in own resources proposed by the Commission.
§ Mr. Ian StewartIt is too early to give precise estimates of the effects of the Fontainebleau agreement on the United Kingdom's gross and net contributions in future years. They will depend on the size and composition of the budget. It is nevertheless clear that our net payments will be around half what they could have been if there had been no agreement and the 1 per cent. ceiling had been retained. It is also clear that the VAT rate for the United Kingdom, after abatement, will remain below 1 per cent. for the foreseeable future, even though the rate for other member states may increase to up to 1.4 per cent.
446Wgrade level with all non-industrial grades grouped with their pay equivalents in the administration group. In addition to the reductions as percentages of the whole, the table shows the reductions as percentages of staff in post at each level at 1 April 1979. The most recent date for which data is available is 1 April 1984. The figures include a small measure of estimation.
§ Mr. Deakinsasked the Chancellor of the Exchequer what, under the existing system of budget contributions would be the impact on the United Kingdom gross and net contributions, respectively, of the increase in own resources proposed by the Commission.
§ Mr. Ian StewartThe European Council proposed to increase the VAT ceiling to 1.4 per cent. In any particular year, the actual VAT rate within the 1.4 per cent. ceiling will depend on the size of the Community budget. As a matter of arithmetic, and on the basis of the budget figures for 1984, if the VAT rate had been set at 1.4 per cent., our gross contribution would have been 6,510 mecu (£3,829 million) in that year rather than 5,330 mecu (£3,135 million), the figures shown in the published budget. Our net payments would depend on the proportion of the additional Community expenditure that took place in the United Kingdom.