§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what were the gross domestic product growth assumptions of each EU country on which his estimate of budget contributions was based.
§ Mr. Heathcoat-Amory[holding answer 25 November 1994]: The growth assumptions are for the Community as a whole and are based on real growth of 2.5 per cent. per annum and inflation of 2.5 per cent. per annum over the period 1995 to 1999.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer on what EC membership his calculation of budget contributions were based.
§ Mr. Heathcoat-Amory[holding answer 25 November 1994]: Twelve.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what is his estimate of the(a) net contributions per capital and (b) the gross contributions per capita in each EU country after the raising of the VAT ceiling is in force.
§ Mr. Heathcoat-Amory[holding answer 25 November 1994]: I presume that the hon. Gentleman is referring to the proposed increase in the own resources ceiling.
The table shows each member state's net balance per capita to the 1993 Community budget.
Community spending. I gave a broad assessment of likely developments in reply to the hon. Member for Moray 473W (Mrs. Ewing) on 24 November, Official Report, columns 353–54.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer on what assumptions about the sums agreed for the EU budget for each of the next five years, his assessment of the British net contribution in his letter to hon. Members was based.
§ Mr. Heathcoat-Amory[holding answer 25 November 1994]: I presume that the hon. Member's intention was to ask on what assumptions my right hon. and learned Friend the Chancellor of the Exchequer's assessment was based.
My right hon. and learned Friend's assessment was based on the assumption that the European Community budget will fully utilise the own resources ceilings in each of the years 1995 to 1999. Assuming 2.5 per cent. annual inflation in the Community, 2.5 per cent. annual growth in real Community GNP, and an exchange rate of £1=1.30 ecu, the figures are as follows:
Own resources ceiling (ECl2, assuming increases agreed at Edinburgh) £ billion 1995 1996 1997 1998 1999 55.5 59.1 63.1 67.4 71.4 The own resources ceiling is a limit on the revenue the Community can call up from the member states, not an entitlement to spend or a target for spending. The Community budget is negotiated annually within the framework of the financial perspective. It is therefore more than possible that in practice annual budgets will be smaller than assumed for the purposes of this assessment.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer on what assumptions of the allocations to Britain from the structural funds on which his estimate of the net United Kingdom contributions to the EC budget were based.
§ Mr. Heathcoat-Amory[holding answer 25 November 1994]: The assumption underlying the latest forecast of the United Kingdom net contributions is that our receipts from the structural funds will average around 8.6 per cent. per year. The United Kingdom's allocation is expected to decline slowly over the period of the forecast reflecting the changes in the allocation of the structural funds agreed at Edinburgh.