In 2023/24, UK government spending was estimated to be ÂŁ1.2trn, some ÂŁ17,000 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 âday-to-dayâ spending on public services, such as health (the biggest, at just over ÂŁ200bn), schools and prisons. Around a quarter is spent on social security, such as universal credit and the state pension (which costs ÂŁ124bn, 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 governmentâs total income inâŠ