HC Deb 26 March 1985 vol 76 cc157-8W
Mr. Deakins

asked the Chancellor of the Exchequer if he will publish a table showing (a) the European Economic Community harmonised value added tax base for 1984 and 1985, together with the authorised percentage payable for both years and (b) the amount payable by the United Kingdom under own resources, in European currency units and pound sterling, for 1984 and 1985, together with the amounts paid so far in 1985, indicating any advance payments and their amounts in European currency units and pound sterling: and if he will estimate the date at which the authorised own resources based on the 1984 European Economic Community budget will be equalled by payments in 1985.

Mr. Ian Stewart

Details of the value added tax base and authorised percentage for 1985 are not available as the Community has no 1985 budget, and until a budget is adopted it is not possible to assess when payments of own resources in 1985 will equal the payment made in 1984.

The other information requested is as follows: A. (i) the 1984 EC harmonised VAT base is 14,377 mecu*; (ii) the authorised percentage for 1984 was one per cent. B. (i) The amount payable by the United Kingdom under own resources as shown in the Supplementary and Amending Budget No. 1 for 1984 is 5,516,349,726 ecust†, the sterling equivalent being £3,406,809,188‡≑. (ii) The United Kingdom's 1985 own resources contribution (including overdrafts and advances) paid to the EC to 20 March amounts to £919,712,957.73¶, which is equivalent to 1,539,982,482 ecus at the exchange rate on 20 March. C. There have been three advances in 1985, £99 million in January, £125 million in February and £115 million in March; equivalent to 165,767,226 ecu, 209,302,053 ecu and 192,557,889 ecu respectively at the 20 March rate of exchange. The actual payment made in March was reduced to £61.2 million, which allowed for the recovery of the current overdrawing.

* In addition Greece made a financial contribution to the Community budget in 1984 of 224,156,962 ecus.

† Includes non-VAT own resources of 2,682,390,000 ecu, and a negative amount of previous financial years own resources of 93,042,074 ecus carried forward into 1984.

‡ Converted at the Community budget exchange rate of £=1.619213 ecus.

≑ The amount actually paid in 1984 varied from the figure for the following reasons:—

  1. (a) Non VAT own resources are paid upon the basis of the sums collected in pound sterling by the United Kingdom;
  2. (b) fluctuations in the exchange rate.

¶ own resources payments made to the Community in 1985 have been adjusted to recover the amount of the moneys overdrawn by the Commission under article 12(2) of Council regulation 2891/77. Neither the advances under article 10(2) of regulation 2891/77 nor the 12(2) overdraft facilities add to the total resources to be paid by the United Kingdom to the Community in 1985; not increase the amount the Community is authorised to spend in 1985.

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