Government Spending in the UK
This is a snapshot of UK government spending. I have listed some of the major departments and how much spending. People may be surprised to find that the biggest department by far is social security benefits. This includes a variety of benefits such as,
- Unemployment benefit
- Housing Benefit
- Child support
- Pensions
- Income support
- Sickness benefit
Government Spending in Real Terms
| 2000-01 | 2007-08 | |
| Social security benefits | 121,000 | 133,882 |
| Health | 52,000 | 89,673 |
| Education | 16,786 | 57,846 |
| Local Government | 33,000 | 22,000 |
| Defense | 32,183 | 32,831 |
| Home Office | 10,423 | 13,571 |
| Scotland | 15,018 | 23,510 |
| Wales | 7,885 | 12,481 |
| International Development | 2,819 | 4,637 |
| Total Government Expenditure | 433,161 | 557,400m |
Note: figures for 2007-08 are planned
Real Terms means that the figures have been adjusted for inflation. It gives a better indication to how much services can be improved by.
Biggest increases in Government Spending in UK
- Health spending increased by 72% (£37,000(
- Education spending increased by 244% (£41,045) Note: this may have been offset by decrease in local government spending on education.
Notes on Spending
- Interesting to note that defense spending has remained almost the same in real terms
- Interesting to note that the Scottish budget increases despite the independence of Scottish Parliament. No surprise the Scots can afford to get rid of tuition fees.
- International development still accounts for less than 1% of Government spending
Source:
Essays and Revision Notes on Fiscal Policy
- Fiscal Policy
- Criticisms -Fiscal Policy
- UK National Debt
- Does Fiscal Policy solve unemployment?
- Effects of Budget Deficits
- Advantages - Budget Deficits
- How Government finances national debt
- WHat does Government Spend its Money On



