In 2013/14 the UK government is forecast to spend a total of £ 722.9 billion – nearly double 2000/01 spending of £359.6 billion
Source: ONS Public Sector Finances MF6U – October 2014
Government spending as % of GDP
Updated Forecasts of Government spending from Autumn Statement of Dec. 2014
Source: OBR, Dec 2014
Note 2013/14, government spending as a % of GDP is approx 41.2% of GDP. This is forecast to fall to 25% of GDP by 2018-19. This will require several years of great government spending restraint and high economic growth.
Government Spending and borrowing
- During 2013/14, government revenue = £620.4 billion.
- Leaving net borrowing of £102.4 billion. More on Government net borrowing here
Of this government spending:
- Current spending = £671.5 bn
- Capital spending = £51.3 bn
Background to government spending
In 2000-01, several years of government spending restraint combined with rising economic growth, saw government spending shrink to under 35% of GDP. Between 2001 and 2007-08, spending rose to over 40% of GDP due to sustained increases in spending on health, education and welfare spending.
- Between 2008-09 and 2009-10, the UK saw a large drop in real GDP of 6%, but due to automatic stabilisers government spending increased (e.g. higher unemployment benefits). This caused government spending as % of GDP to rise to 47%.
- Government spending as % of GDP is forecast to fall closer to 40% of GDP by 2016-17 (if growth targets are met)