HC Deb 21 May 1986 vol 98 cc188-90W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he will bring up to date the table published in the Official Report on 3 April 1984, columns 451–52, giving details of the United Kingdom contribution to the European Economic Community budget; and if he will add an estimate for this year and the forecast for next.

Mr. Brooke

[pursuant to his reply. 19 May 1986, c. 88]: The information is as follows. The Government's latest forecast of the United Kingdom's gross payments to and receipts from the 1986 and 1987 Community budgets is contained in the public expenditure White Paper (Cmnd. 9702). The forecast in the White Paper does not take account of the supplementary budget for 1986 and was made before details of the 1987 preliminary draft budget were available. On the basis of the figures for United Kingdom contributions in the 1986 budget and the 1986 supplementary budget, and those likely to be contained in the 1987 preliminary draft budget, our gross contribution in 1986 will be 6796 mecu before abatement, and, in 1987, 7328 mecu. The budgets do not contain estimates of United Kingdom receipts.

A—Net Payments
£ million.
1984 1985
Gross Payments 3,201 3,940
Receipts other than refunds/abatements 2,017 1,853
Negotiated refunds 528 *61
VAT Abatement †l66
Net payments 656 1,860

Source: Departmental records.

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

† VAT abatements. 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, of 725 mecu (£439 million) was paid in the first few days of 1986.

B—Gross Contributions
£ million.
1984 1985
Customs Duties *1,276 1,291
Agricultural Levies *202 134
Sugar and Isoglucose Levies 58 55
VAT Payments 1,665 2,091
IGA †369
Total 3,201 3,940

Source: Departmental records.

* The figures include a total of £39.9 million (£12.9 million for customs duties and £27 million for agricultural levies) in respect of an earlier underpayment arising from the civil service industrial action in 1981.

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

Mr. Gould

asked the Chancellor of the Exchequer if he will bring up to date the figure for gross receipts from, and gross payments to, the European Economic Community budget given in his reply of 7 July 1983; if he will provide an estimate for 1986, including forecast supplementaries, together with a forecast for next year; and how the figure for refunds is made up.

Mr. Brooke

[pursuant to his reply, 19 May 1986, c. 88]: The information for the years 1983 to 1985 is set out in the table. The Government's latest forecast of our net payments to the European Economic Community budget for the years 1986 and 1987 remains as set out in the public expenditure White Paper (Cmnd. 9702). The White Paper does not take account of this year's supplementary budget and was prepared before details of the preliminary draft budget for 1987 were available. On the basis of the figures for United Kingdom contributions in the 1986 budget and the 1986 supplementary budget, and the figures likely to be included in the 1987 preliminary draft budget, the United Kingdom's gross contributions in 1986 will be 6795 mecu (before abatement), and, in 1987, 7328 mecu. The budgets do not give information on United Kingdom receipts. I refer the hon. Member to the reply I gave the hon. Member for Great Grimsby (Mr. Mitchell) on 14 May 1986, at columns 487–88, concering the formula for calculating the United Kingdom's rebates.

1983 1984 1985
£ million £ million £ million
Gross payments 2,976 3,201 3,940
Receipts other than refunds 1,522 2,017 1,853
Negotiated refunds 807 528 *61
VAT abatements †l66
Net payment 647 656 1,860

Source: Departmental records.

* Negotiated refunds. In the first quarter of 1985 the United Kingdom received £61 million is respect of its excessive net contribution to the 1983 Community budget.

† VAT abatements. In 1985 the United Kingdom received only 275 mecu of the 1,000 mecu payable in respect of its excessive net contribution to the 1984 Community budget. The balance of 725 mecu (£439 million) was paid in the first few days of 1986.

Forward to