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Personal Incomes

Volume 78: debated on Friday 10 May 1985

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asked the Chancellor of the Exchequer whether he will provide information on the net income after income tax, national insurance contributions and child benefit at (a) actual prices and (b) constant (April 1985) prices of typical household units (i) single, (ii) married couple, (iii) married couple with two children, (iv) married couple with four children whose gross income is at (x) the lowest decile, (y) the median and (z) the highest decile for each year since 1978–79.

Economic Community total; and to what extent the United Kingdom rebate has been reduced by confining the calculation to the value added tax element.

Details of the United Kingdom's contribution to own resources under value added tax and other resources, together with its share of the EEC total are given in the Official Journal of the European Communities—"Annual Report by the Court of Auditors". The copies covering the period 1973 to 1983 are in the Library of the House. The latest estimated outturn figures for 1984 are as follows:—

United Kingdom Contribution of Own Resources 1984 (MECU)

(a) Value-added tax—2,927 (20·05 per cent, of total)

(b) Other own resources—2,603 (25·05 per cent, of total)

(c) Total United Kingdom contribution—5,530 (22·1 per cent. of total EC own resources)

The calculation of the United Kingdom's rebate is not confined to the value-added tax element. As the Prime Minister pointed out in her statement to the House at column 1002, the calculation takes the majority of the United Kingdom's contribution to all forms of own resources into account. Furthermore, it is not possible to calculate to what extent the United Kingdom abatement has been affected by the agreement reached at Fontainebleau since it cannot be known what agreement, if any, could have been reached on other arrangements to reduce the United Kingdom's net contributions for future years.