In 2024/25 the government of the United Kingdom had an expenditure of almost 1.29 trillion British pounds, compared with 1.23 trillion in the previous financial year. Between 2010/11 and 2019/20, the UK's government spending increased at a relatively stable pace before a sudden spike in spending in the 2020s. After spending just under 889 billion pounds in 2019/20, government spending surpassed 1.1 trillion the following year, due to the high level of public spending that occurred during the COVID-19 pandemic. Main outlays of the UK government The government is expected to spend approximately 379 billion British pounds on social protection in the 2025/26 financial year, followed by 277 billion on health, and 146 billion on education. As a share of GDP, social protection spending has consistently been the government's main outlay for several decades. Health spending has, however, become far more prominent. In the late 1970s, the government spent more on education, and defence than it did on health, with health spending increasing from 3.9 percent in 1978/79, to 8.4 percent by 2024/25. Defence spending in particular was cut significantly after the end of the Cold War, although geopolitical instability is forcing the government to rethink these cuts. Spending cuts politically dangerous for Labour Since coming to power in July 2024, the current Labour government has seen its popularity plummet drastically, with approval ratings similar to the unpopular Conservative government it replaced. Part of the reason for this have been Labour's attempts to reform aspects of the UK's welfare system. Shortly after winning the last election, Labour announced cuts to winter fuel payments for pensioners, a policy they paid dearly for in political capital and one that was reversed by June 2025. An attempt to push through further reforms was effectively defeated the following month, leaving the government in a tricky fiscal situation for the next budget.

In 2025/26, the budgeted expenditure of the United Kingdom government is expected to be reach 1,335 billion British pounds, with the highest spending function being the 379 billion pounds expected to be spent on social protection, which includes pensions and other welfare benefits. Government spending on health was expected to be 277 billion pounds and was the second-highest spending function in this fiscal year, while education was the third-highest spending category at 146 billion pounds. UK government debt approaching 100 percent of GDP At the end of the 2024/25 financial year, the UK's government debt amounted to approximately 2.8 trillion British pounds, around 96 percent of GDP that year. This is due to the UK having to borrow money to cover its spending commitments, especially at the height of the COVID-19 pandemic, when this deficit amounted to 314.6 billion pounds. Without significant cuts to spending or tax rises, the current government is aiming to reduce this debt by creating a stronger, more productive economy. Though this is how Britain's post WW2 debt was reduced, the country faces far more structural problems to growth than it did in the mid 20th century. Income Tax the UK's main revenue source Income Tax is expected to raise approximately 329 billion British pounds in the 2025/26 financial year, and be the largest revenue source for the government that year. Value Added Tax (VAT) receipts are expected to raise 214 billion pounds, with National Insurance contributions reaching 199 billion pounds. Although National Insurance rates for employees has actually fallen recently, the rate which employers pay was one of the main tax rises announced in the Autumn 2024 budget, rising from 13.8 percent to 15 percent. Though this avoided raising tax for workers directly, many UK businesses were critical of the move, with taxation seen as the main issue facing them at the start of 2025.

The United Kingdom: Government spending, billion USD: The latest value from 2023 is 692.42 billion U.S. dollars, an increase from 648.58 billion U.S. dollars in 2022. In comparison, the world average is 104.89 billion U.S. dollars, based on data from 155 countries. Historically, the average for the United Kingdom from 1960 to 2023 is 263.9 billion U.S. dollars. The minimum value, 12.87 billion U.S. dollars, was reached in 1960 while the maximum of 699.68 billion U.S. dollars was recorded in 2021.

The United Kingdom recorded a Government Budget deficit equal to 5.10 percent of the country's Gross Domestic Product in 2024. This dataset provides - United Kingdom Government Budget - actual values, historical data, forecast, chart, statistics, economic calendar and news.

In 2024/25, the UK government spent approximately 13.3 percent of GDP on social protection, compared with 8.4 percent for health, and 4.1 percent for education. These three spending areas have accounted for the highest share of government spending since the late 1980s. Defence spending as a share of GDP has, by contrast, fallen throughout this period, from a high of 4.6 percent in 1984/85, to just 1.8 percent in the mid-2010s. Main sources of revenue During this same time period, income tax has been the most important source of revenue for the government, accounting for almost ten percent of GDP in the 2022/23 financial year. The UK's main tax levied on sales, Value Added Tax (VAT), was equivalent to 7.4 percent of GDP that year, with National Insurance Contributions at around seven percent of GDP. Taxes raised from businesses via Corporation Tax were the fourth-major source of tax revenue that year, at approximately 3.1 percent of GDP. Debt and borrowing Due to several years of the government spending more than it earns, the government has had to borrow large amounts to finance its commitments. This was especially the case at the height of the COVID-19 pandemic when, due to depressed revenues and increased expenditure, the government borrowed more than 314 billion pounds. This increased the national debt from 1.8 trillion pounds, to around 2.15 trillion pounds, or almost 97 percent of GDP.

Actual value and historical data chart for United Kingdom Public Spending On Education Total Percent Of GDP

In the 2024/25 financial year, the government of the United Kingdom spent approximately 26.7 billion British pounds on Railways, compared with 6.5 billion on national roads, 6.4 billion on local roads, 4.7 billion on local public transport, and 2.2 billion on other forms of transport.

In 2024/25, the United Kingdom spent approximately 63.6 billion British pounds on defense, compared with 56.8 billion pounds in the previous year. This was the highest defense spending for the UK during this provided time period. NATO and the two percent pledge The UK is a founding member of the North Atlantic Treaty Organization (NATO), a military and political alliance initiated on the principle that an attack on one member is an attack on all. Members of NATO are expected to spend at least two percent of their GDP on defense, a target which the United Kingdom just missed between 2015/16 and 2020/21. Before 2016, the United Kingdom’s defense spending was always above this target and was higher than three percent of GDP before the mid-1990s. As of 2022/23, UK defense spending was slightly above this target, at 2.2 percent of GDP, with plans to increase it to three percent in the future. The UK and the War in Ukraine The recent pledge to increase UK defense spending is clearly linked to recent events in Europe. Russia's full-scale invasion of Ukraine in February 2022 completely altered the European security landscape for the UK. Along with a coalition of other countries, the UK has been one of the key backers of the Ukrainian military effort, providing significant military aid over the course of the war. Apart from financial aid, the UK has provided Ukraine with equipment such as the Challenger 2 Main Battle Tank, a number of armored fighting vehicles, and missiles, including long-range Storm Shadow cruise-missiles.

The United Kingdom's government revenue was just over 1.13 trillion British pounds in 2024/25, compared with just under 1.1 trillion in 2023/24.

This statistic shows the United Kingdom's (UK) forecasted public sector receipts from the EU budget in the UK financial years 2018/19 to 2023/24. The totals are forecasted to steadily rise over the period, from **** billion British pounds in 2018/19 to **** billion British pounds by 2023/24.

Detailed breakdown of average weekly household expenditure on goods and services in the UK. Data are shown by place of purchase, income group (deciles) and age of household reference person.

In 2024/25 the United Kingdom spent an estimated 313 billion British pounds on welfare, compared with 297 billion pounds in the previous year.