UK government finances- Statistics & Facts

The government of the United Kingdom spent approximately 1.1 trillion British pounds in the 2022/23 financial year, compared with 1.04 trillion in 2021/22. In 2022/23, the government raised 964.8 billion pounds in revenue, leaving a deficit of 144.2 billion pounds which the government borrowed to finance its expenditure. With the UK consistently borrowing money to finance its spending, the government has accrued a significant national debt, amounted to 2.4 trillion pounds in 2022/23.

COVID-19 pandemic led to huge public spending

In order to protect the incomes of workers unable to work during the COVID-19 pandemic, the UK government spent a significant amount of money paying the wages of furloughed employees on its Job Retention Scheme. Over the course of the furlough scheme, which lasted from April 2020 to November 2021, the government spent approximately 70 billion pounds paying the wages of 11.7 million workers. Extra spending was also required to support the National Health Service (NHS), with health spending jumping from 173 billion pounds in 2019/20 to 218.1 billion pounds in 2020/21. Due to the severe economic downturn that occurred as a result of the pandemic, the amount of money which the government could raise, such as in taxes, also decreased during time. Overall, UK government spending reached a peacetime-high of 53 percent of GDP in 2020/21, leading to a budget deficit that was equivalent of 15.1 percent of GDP in the same financial year.

Debt as a share of GDP expected to peak in 2023/24

Although the UK economy returned to growth in 2021, the UK economy has experienced additional difficulties, and as of 2023 has yet to exceed its pre-pandemic size. The UK was hit hard by the global Inflation Crisis, from late 2021 onwards, leading to the inflation rate reaching a 41-year-high of 11.1 percent in October 2022. Food and energy prices in particular grew at an accelerated pace, plunging UK households into a difficult Cost of Living Crisis. In response to the crisis, the government announced several policies in 2022 to subsidize the energy bills of households, and reduce their tax burden. Recent economic setbacks, coupled with high government spending have left the UK with high levels of government debt. As a share of GDP, the debt is expected to peak at 103.1 percent of GDP in 2023/24, before gradually falling to 96.6 percent by 2027/28.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by D. Clark, May 3, 2023

Key insights

UK government spending 2022/23
1.15tr GBP
UK government revenue 2022/23
1.02tr GBP
UK government net debt 2022/23
2.54tr GBP
Get more insights

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Public sector net debt expressed as a percentage of GDP in the United Kingdom from 1900/01 to 2028/29

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Total managed expenditure expressed as a percentage of GDP in the United Kingdom from 1900/01 to 2028/29

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Government spending as a percentage of GDP in the UK 1900-2029

Public sector borrowing expressed as a percentage of GDP in the United Kingdom from 1900/01 to 2028/29

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Government borrowing as a percentage of GDP in the UK 1900-2029

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