HC Deb 24 July 1987 vol 120 cc559-61W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he will bring up to date the information given in his written reply to the hon. Member for Dagenham (Mr. Gould) of 4 February, Official Report, columns 669–70, concerning the principal components in the United Kingdom's payments and receipts from the European Economic Community together with a forecast for the current year.

Mr. Brooke

The information requested concerning the outturn for the 1986 calendar year and an estimate for 1987 is given in the table:

Principal Components in United Kingdom Payments to and Receipts from the EEC1
1986 2l987
VAT rates (percentage) (budget figures)
Community VAT ceiling 1.4 1.4
UK VAT rate 0.67663 0.7982
FRG VAT rate 1.33697 1.3102
Other states VAT rate 1.39996 1.3643
Payments (£ million)
VAT before abatements 3,005 3,175
Abatements -1,701 -1,126
Sugar and Isoglucose levies 52 60
Agricultural levies 192 176
Customs duties 1,244 1,329
Total contribution 2,792 3,614
Receipts
EAGGF 1,374 1,422
Regional Development Fund 298 327
Social Fund 335 263
Other receipts 213 255
Total receipts 2,219 2,267
Net contribution 572 1,347

Source: Departmental records.

1 Because of rounding, the column totals do not necessarily equal the sum of the individual items.

2 The forecast for 1987 is taken from the Statement on the 1987 Community budget, Cm. 194 published on 23 July 1987.

Mr. Austin Mitchell

asked the Chancellor of the Exchequer, pursuant to his reply to the hon. Member for Dagenham (Mr. Gould) on 6 February, Official Report, column 840, setting out the financial guideline for the European Economic Community budget, whether he will publish in the Official Report, a table comparing the guideline for 1987 with what was originally proposed by the European Economic Community Commission and what has now been agreed on an adhoc basis; and if he will explain how the additional finance is to be raised.

Mr. Brooke

The financial guideline for the European Community Budget for 1987, remains at 22,961 million ecus, as was stated on 6 February 1987 at column840. It was agreed at the European Council on 29–30 June and subsequently by the Agriculture Council on 13 July, that agricultural expenditure would be kept within the 1987 financial guideline by means of an adjustment in the system of advance payments to agricultural intervention agencies in the Member states.

Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he can now provide the information for 1987 which was omitted from his written reply to the hon. Member for Dagenham (Mr. Gould) on 3 February, Official Report, column 578, concerning the United Kingdom's value added tax share of the allocated European Economic Community budget and the corresponding receipt.

Mr. Brooke

On the basis of the information contained in the 1988 preliminary draft budget, the figures for 1987 which correspond to those for 1986 given in my reply to the hon. Member for Dagenham (Mr. Gould) on 3 February 1987 at column578 are 6,961 mecu for our VAT share of the allocated budget and 3,524 mecu for our allocated receipts.

Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he will bring up to date the information given in his written reply to the hon. Member for Dagenham (Mr. Gould) on 3 February, Official Report column 578, concerning the amount by which the United Kingdom contribution to the European Economic Community budget exceeds receipts; and if he will add a forecast for 1987, including in that forecast any contribution which may have to be paid next year to cover a shortfall in revenue in the current year.

Mr. Brooke

The figures for 1986, together with an estimate for 1987, are as in the table. There are no proposals in the 1988 preliminary draft budget for dealing with any shortfall in revenue this year.

£ million
Gross contributions less receipts other than rebates/ abatements 1abatements unpaid abatement outstanding
1986 2,273 2 31,294
19874 22,473 2 51,565
1 This column shows abatements against the year to which they relate, not the year in which they are paid.
2 These figures have been calculated using an exchange rate of £1 = 1.45 ecu.
3 This figure is the sterling equivalent of the 1,633 mecu abatement in respect of 1986 contained in the 1987 budget plus the 244 mecu correction to our abatement in respect of 1986 contained in the 1988 preliminary draft budget.
4 These figures are taken from the Statement on the 1987 Community budget, Cm 194, published on 23 July. They do not take account of the supplementary and amending budget now approved by the Council of Ministers and the European Parliament.
5 This figure is the sterling equivalent of the 2,269 mecu abatement in respect of 1987 contained in the 1988 preliminary draft budget.

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