HL Deb 21 January 1992 vol 534 cc22-3WA
Lord Bruce of Donington

asked Her Majesty's Government:

Whether they will give detailed particulars of the calculations of the abatement of the United Kingdom's contribution to the "Own Resources" of the EC in respect of 1992 made under Articles 4 and 5 of the EC decision of 24th June 1988 (Cm. 822).

The Minister of State, Department of Transport (Lord Brabazon of Tara)

The main steps in calculating the UK's abatement are as follows:

  1. (a) calculate the percentage difference between
    1. (i) the UK's share of member states' total VAT-based contributions to Community own resources (that is, WA 23 revenue), without adjustment to reflect capping arrangements introduced in 1988, and
    2. (ii) the UK's share of total allocated expenditure (that is, broadly total EC budget expenditure, excluding aid);
    1. (b) apply the percentage difference obtained to total allocated expenditure;
    2. (c) multiply the result by 66 per cent.;
    3. (d) deduct the benefit accruing to the UK arising from the changes to the own resources system agreed in 1988,

with the resulting figure applied a year in arrears as a deduction from the required UK VAT-based contribution to own resources.

On this basis the UK's abatement in the 1992 Community budget, totalling 2,920 mecu (£2,090 million), is calculated as follows:

Abatement
1. UK's share of uncapped VAT-based own resources 19.1 per cent.
2. UK's share of allocated expenditure 8.6 per cent.
3. (1)-(2) 10.5 per cent.
4. Total allocated expenditure 51,730 mecu
5. (3)x(4) 5,420 mecu
6. 0.66x(5) 3,574 mecu
7. Benefit to the UK under the 1988 Own Resources Decision 655 mecu
8. Total compensation (6)-(7) 2,920 mecu