HC Deb 28 April 1986 vol 96 cc327-9W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing for each year since 1972 and the forecast for 1986 the amount of the gross contribution to the European Economic Community budget broken down into value added tax, customs duties and other imposts, together with the receipts under various heads, including any rebates.

Mr. Brooke

[pursuant to his reply, 21 April 1986, c. 39]: Details of the United Kingdom's contributions to and

(A) Contributions
mecu Value-added tax Customs duties Agricultural levies Sugar and Isoglucose levies IGA
1985* †3,268 2,192 227 94 ‡628
1986 †1,585 2,310 260 88

Source:

* European Economic Community United Kingdom No. 1 Account. All figures are sterling outturn converted at the annual average exchange rate for 1985 (£1=1.6981 ecu).

† Abated VAT contributions. In 1985 the United Kingdom received only 275 mecu of the 1000 mecu payable in respect of its excessive net contribution to the 1984 Community budget. The balance (725 mecu) was paid in 1986. It is assumed that the United Kingdom's VAT contribution in 1986 will be abated by an additional 1,400 mecu in respect of its excessive net contribution to the 1985 budget.

‡ The United Kingdom contributed to two IGAs in 1985. It paid £119 million to the 1984 IGA, and £250 million to the 1985 IGA.

effect of the reduction of one penny in the basic rate of income tax and the increases of less than statutory indexation in the second and subsequent higher rate thresholds. The information is analysed by range of gross income, rather than earnings and the ranges are based on multiples of an illustrative figure for average adult male full time earnings of £213.80 per week at £11,118 per annum for 1986–87.

Estimates of numbers of tax units in each income range are derived by projecting data to 1986–87 from the 1983–84 survey of personal income. They are subject to a margin of error; and a reliable estimate of those with incomes above 10 times average earnings cannot be produced.

receipts from the Community budget are given in the Official Journal of the European Communities, "Annual Report by the Court of Auditors". The copies covering the period 1973 to 1984 are in the Library of the House. The figures for 1985 (outturn) and 1986 are given below. The contributions figures for 1986 are based on the 1986 budget, though they exclude any contribution to the disputed elements of the budget adopted by the European Parliament. No forecast of our receipts in calendar year 1986 has been made, though figures for 1986–87 were published in the last public expenditure White Paper, Cmnd 9702.

(B) Receipts
mecu Guarantee Guidance Social Fund Regional Development Fund 10 per cent. own Resources Refunds Negotiate Refunds Other
1985* 1,900 26 430 452 250 †103 71

Source:

* Departmental returns. Sterling information converted at the annual average exchange rate for 1985.

† Negotiated refunds: In the first quarter of 1985 the United Kingdom received £61 million in respect of its excessive contribution to the 1983 Community budget.

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