HC Deb 14 May 1986 vol 97 cc483-4W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing for each year since 1973 the gross amount contributed by the United Kingdom to the European Economic Community budget as a percentage of the gross total, the share of the European Economic Community value added tax base accounted for by the United Kingdom value added tax and contribution, the formula for calculating the United Kingdom rebate, and the amount of the rebate; and if he will provide an estimate for the current year and a forecast for 1987.

Mr. Brooke

The information requested is as follows:

Year Gross United Kingdom contribution Percentage *United Kingdom share Percentage
1973 8.8
1974 11.0
1975 13.6
1976 16.2
1977 19.2

Year Gross United Kingdom contribution Percentage *United Kingdom share Percentage
1978 15.4 16.8
1979 17.5 18.5
1980 20.5 17.2
1981 21.5 19.5
1982 24.2 23.0
1983 22.1 19.5
1984 21.8 20.8
;1985 23.2 22.9

Source: Court of Auditors' report,.

* United Kingdom VAT on GNP-related payments as a proportion of total VAT or GNP-related payments in the Community.

After extra-budgetary financial compensation under art 131 of accession treaty.

GNP share.

Excluding IGA payments. If these were included, the 1984 figure would still be 21.8 per cent. after rounding. The 1985 figure would be 23.1 per cent.

; Estimated.

The formula for calculating the United Kingdom rebates in 1980 and 1981 is set out in the Council conclusions of 30 May 1980, published in OJ C158, 27 June 1980, of which a copy is in the Library of the House. The size of the rebates for 1982 and 1983 was agreed by negotiation. The "risk-sharing" formula for 1982 is set out in Council regulation 624/83 (OJ C73 March 1983). The size of the abatement in 1984 was agreed by negotiation. The total (gross) amounts received in respect of each year were:

Year £ million
1980 790
1981 1,011
1982 807
1983 589
1984 605

The formula for calculating the United Kingdom's abatement under the Fontainebleau system is set out in the "Own Resources Decision" of 7 May 1985 (Cmnd 9549). The latest estimate for the abatement due in respect of 1985 and paid in 1986 is £1,220 million (1,900 mecu). It is likely that the Commission will include in the 1987 PDB provision for our abatement due in respect of 1986 and paid in 1987 of £1,050 million (1,640 mecu). This will need to be corrected in the light of outturn information on our contributions and receipts in 1986. The United Kingdom does not contribute towards its own abatements. It did, however, have to contribute towards budget refunds.