In 2023/24, UK government spending was estimated to be £1.2trn, some £17,000 per person, and around 45% of the total size of the economy, as measured by GDP. (By contrast, in 2022, the US spent 36% of GDP, Germany 49%, and France 58%.) Around two-thirds of the total is “day-to-day” spending on public services, such as health (the biggest, at just over £200bn), schools and prisons. Around a quarter is spent on social security, such as universal credit and the state pension (which costs £124bn, the largest item in the welfare budget). The remainder can be split into interest on government debt (around 8% of the total in 2023/24, above the recent norm because of high interest rates) and government investment (around 5%).
By contrast, the government’s total income in…