The Queen's Speech: European budget measure 'could lead to revolt'

ONE OF the biggest headaches of the new parliamentary session could be the Bill to pave the way for increases in the European Union budget.

A backbench revolt could be sparked by implementing the so- called 'Own Resources' deal reached at last December's Edinburgh summit, under which maximum contributions are to be progressively increased from today's 1.2 per cent of gross national product to 1.27 per cent by 1999.

The changes are due to come into effect from 1 January 1995 and must first be unanimously adopted by member states. In Britain's case, that means an amendment to the European Communities Act 1972 must be passed in the current session. Prevarication or delay in the British Parliament would be a severe embarrassment to John Major.