HC Deb 12 April 1988 vol 131 c65W
Mr. Spearing

To ask the Chancellor of the Exchequer what sum he expects will be raised by the proposed intergovernmental agreement described in European Commission document COM (88) 81; what is the purpose of the proposal; what is the part of the draft budget to which it relates, expressing those sums in both European currency units and pound sterling, together with the terms of any reimbursement; and what is the method by which Her Majesty's Government propose to seek parliamentary approval for this draft agreement.

Mr. Brooke

As I said in reply to my hon. Friends the Members for Sevenoaks (Mr. Wolfson) on 24 February, at columns194–96, and for Daventry (Mr. Boswell) on 9 March, at columns 208–9, respectively, the Intergovernmental agreement (IGA) was provided for in the conclusions of the Brussels European Council on 11–12 February. Its purpose is to cover the Community's 1988 budget requirements in excess of the existing own resources ceiling pending entry into force of the new own resources decision. The amount which member states would contribute under the IGA depends on the level at which the 1988 budget is eventually adopted. The provisional and indicative amount in respect of the draft budget established at the Economic and Finance Council on 7 March is 7.647 billion ecu (around £5.304 billion), with a United Kingdom contribution of 1.263 billion ecu (around £0.876 billion). The IGA would not be related to any particular part of the budget. It would take the form of non-repayable advances corresponding to the new fourth resource.

Parliament's approval for the IGA will be sought before the money is paid to the Community, probably by means of a special Estimate or by a Bill—following the precedent of the 1984 or 1985 IGAs respectively. The method chosen will depend mainly on the timing of the necessary formal agreements between member states.

Shares of income tax payers' total income before tax
Financial year
1978–79 1983–84 1984–85 1985–861 1986–871 1987–881
Top 1 per cent.
Amount £ billion 5.1 9.7 10.9 13.6 14.6 16.1
Share per cent. 5 5 5 6 6 6
Top 5 per cent.
Amount £ billion 15.0 28.3 31.4 36.4 39.4 43.3
Share per cent. 15 16 16 16 16 17
Top 10 per cent.
Amount £ billion 24.3 45.0 49.6 56.7 61.4 67.4
Share per cent. 24 25 25 25 26 26