government spending

Health care spending in the UK

Health care spending in the UK

Since 1950, health care spending in the UK has increased dramatically in real terms (adjusted for inflation). In the post war period we have also seen a sharp rise in public health care spending as a % of GDP (from 3% in 1960 to 7.8% in 2010). This matches a global rise in health care spending. However, despite the rise in real spending, in the past four years, the UK has seen a fall in health care spending as a % of GDP – and this trend is forecast to…

Is austerity necessary?

Is austerity necessary?

Since 2010, the UK economy has been dominated by spending cuts and a the desire to run a budget surplus as soon as possible. In the political world, the government deficit is often portrayed as the source of many economic ills, and eliminating the deficit one of the highest macro objectives. However the government deficit (see: Government debt under Labour) never caused the recession, but the deficit was largely a symptom of the global financial crisis. Reducing the deficit at a time of weak growth has arguably slowed down…

How is government spending rising at a time of spending cuts?

How is government spending rising at a time of spending cuts?

Readers Question: Why are there government spending cuts at a time of rising government spending? One of the confusing elements of ‘austerity’ and government spending cuts is that from one perspective, we can have a rise in total government spending – but some areas of government spending see cuts. Source: ONS Public Sector Finances MF6U – October 2014 What do we actually mean by government spending cuts and austerity? Cutting government spending When we talk of cutting government spending it can mean…

UK Government spending – real and as % of GDP

UK Government spending – real and as % of GDP

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…