§ Mr. SpearingTo ask the Chancellor of the Exchequer if, with reference to the proposal of the Commission of the European Economic Community draft decision Com. (87), relating to a new financial structure, he will give the maximum limit of overall expenditure in percentage of the gross national product of the Community which is equivalent to the expenditure on a basis of 1.4 per cent. of its harmonised value added tax base and income from other own resources in 1987, together with the respective percentage of that harmonised base necessary to achieve the maximum proposed overall expenditure for each of the years 1988 to 1992, expressed as a percentage of Community gross national product, on the assumption that income from non-percentage based own resources remains stable from year to year.
153W
§ Mr. Brooke[holding answer 1 February 1988]: The information requested is shown in the table below. Line 1 shows the VAT rate required to finance the maximum level of expenditure that can be afforded within the annual sub-ceilings on own resources set out in the Commission's draft own resources decision (COM(87)420). It is assumed that there is no change in the structure of the own resources system, but an increase in the VAT ceiling. Line 2 shows
1987 1988 1989 1990 1991 1992 1. Percentage VAT rate required to finance maximum level of expenditure which can be afforded within proposed sub.ceilings 1.4 1.72 1.80 1.87 1.96 2.05 2. Maximum level of expenditure as a percentage of EC12 GNP 1.05 12.0 1.22 1.24 1.27 1.30 Note: Line (1) assumes continuation of the present structure of own resources. Lines (1) and (2) both assume that the correction for the United Kingdom's budgetary imbalance continues to be financed within the own resources ceiling.