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United KingdomUnited Kingdom · HM Government

Government Budget
Financial Year 2023–24

All figures in £ Billion (GBP) · Source: HM Treasury PESA & OBR
Total Receipts
£1.10T
39.9% of GDP
Budget Deficit
£92B
3.3% of GDP
Total Outlays
£1.19T
43.2% of GDP
Public Debt
98.6%
~£2.7T · risen sharply since pandemic
Budget breakdown

Revenue by Source

Max = £279B (Income Tax) · Total £1.10T
Direct Taxes on Income
Income TaxPAYE + self-assessment; 20%/40%/45% bands
£279B10.1% GDP
National InsuranceEmployees 10–12% + employers 13.8% of wages
£178B6.5% GDP
Corporation Tax25% main rate from Apr 2023 (up from 19%)
£86B3.1% GDP
Taxes on Spending
VAT20% standard rate · 5% reduced · 0% zero
£168B6.1% GDP
Fuel DutyFrozen at 52.95p/litre; 5p cut maintained
£25B0.9% GDP
Other Excise DutiesAlcohol, tobacco, air passenger duty, gaming
£32B1.2% GDP
Taxes on Property & Wealth
Council TaxSet by local authorities; avg ~£2,000/year
£40B1.5% GDP
Business RatesNon-domestic rates on commercial property
£26B0.9% GDP
Stamp Duty Land TaxProperty transactions; fell 24% on cooling mkt
£12B0.4% GDP
Other Taxes & FeesInheritance tax, CGT, customs, misc. receipts
£51B1.9% GDP
Deficit Financing (PSNB)Gilt issuance + Treasury bills to bond markets
£92B3.3% GDP
Total Resources Available
£1.19T
Note: Note on National Insurance: NICs are formally a social insurance contribution but in the UK they flow directly into the Consolidated Fund and are not hypothecated — they do not fund a dedicated pension or health pot. They are effectively an income tax on employment with a different name and rate structure.

Expenditure by Function

Max = £185B (NHS/Health) · Total £1.19T
Health
NHS & HealthNHS England (~£177B) + devolved health budgets
£185B6.7% GDP
Social Security — Pensioners
State PensionTriple lock · £221.20/week from Apr 2024
£124B4.5% GDP
Pension Credit & OtherMeans-tested top-up + winter fuel payment
£12B0.4% GDP
Social Security — Working Age & Children
Universal Credit£51B UC + £30B legacy benefits in transition
£81B2.9% GDP
Disability BenefitsPIP, DLA, attendance allowance
£35B1.3% GDP
Housing BenefitLegacy HB for pensioners + some working age
£20B0.7% GDP
Child Benefit & Tax CreditsUniversal child benefit + remaining tax credits
£19B0.7% GDP
Debt Service
Debt InterestRPI-linked gilts esp. costly; peaked 2022-23
£110B4% GDP
Public Services (DEL)
EducationSchools, FE, HE, skills — central + local
£115B4.2% GDP
Local GovernmentRevenue support grants + ring-fenced grants
£65B2.4% GDP
DefenceArmed forces, equipment, nuclear deterrent
£52B1.9% GDP
TransportHighways, rail (incl. Network Rail debt), HS2
£30B1.1% GDP
Home Office, Justice & PolicingPolice, courts, prisons, immigration
£30B1.1% GDP
Capital InvestmentPublic sector net investment: schools, roads, hospitals
£60B2.2% GDP
Other DepartmentsDWP admin, FCDO, HMRC, DSIT, environment, culture
£51B1.9% GDP
Total Managed Expenditure
£1.19T
Note: DEL vs AME: UK spending is split into Departmental Expenditure Limits (DEL) — firm multi-year departmental budgets — and Annually Managed Expenditure (AME), which is demand-driven: social security, debt interest, and devolved block grants. AME is ~£500B; DEL is ~£600B.
Context & explanations
🏥

The NHS: The Dominant Spending Item

At ~£185B for health in total, healthcare is by far the single largest expenditure function — around 1 in every 6 pounds of all public spending. The NHS is free at the point of use, funded entirely from general taxation with no insurance premium.

NHS: ~£177B for England alone
👵

State Pension: The Largest Single Benefit

The State Pension cost £124B in 2023-24. The "triple lock" guarantee (rises by whichever is highest: inflation, earnings, or 2.5%) has driven sustained above-inflation increases. The full new State Pension is £221.20/week.

Triple lock · £124B · flat-rate PAYG
📊

Debt Interest: £110B After RPI-Linked Gilt Crisis

Debt interest jumped from £43B in 2018-19 to ~£110B in 2023-24. The UK has a large proportion of index-linked gilts (tied to RPI inflation), which became extremely expensive when inflation hit 11%.

£110B · 10% of spending · RPI-linked
💼

NICs: A Tax in All But Name

National Insurance Contributions (£177.7B) are nominally a social insurance contribution but are not hypothecated. The UK raises relatively little from NICs as a share of GDP compared to continental Europe.

£177.7B · not hypothecated · 6.5% GDP
🏘️

Universal Credit: One Benefit to Rule Them All

Universal Credit (£51B) is replacing six legacy means-tested benefits. The rollout is now ~95% complete. UC was designed to make work pay by tapering benefits at 55p for every £1 earned.

UC: £51B · 6 benefits merged into 1
🗳️

Devolved Spending & the Barnett Formula

Scotland, Wales, and Northern Ireland receive block grants calculated by the Barnett Formula. The grants (~£45B combined in 2023-24) are shown within education, health, and other functional categories.

Barnett Formula · ~£45B block grants

Primary sources: Primary sources: HMRC Tax Receipts and National Insurance Contributions for the UK, Annual Bulletin (2023-24 outturn); HM Treasury Public Expenditure Statistical Analyses (PESA 2024); Office for Budget Responsibility (OBR) — Economic and Fiscal Outlook March 2024; Institute for Fiscal Studies — What Does the Government Spend Money On?

Methodology: The UK financial year runs April to March. Receipts total (~£1.10T) is public sector current receipts (PSCR). Total Managed Expenditure (TME = £1.19T) is from PESA 2024 outturn. Deficit is Public Sector Net Borrowing (PSNB) ~£92B. GDP reference: ~£2.75T (2023-24, ONS).