How Much Tax Do The UK Government Raise And Where Does It All Go?
As we are all being bombarded with feedback from Gordon Brown’s last budget, we thought it may be interesting to actually detail how much tax is raised by the UK government, and where it all goes.
Using figures released by HM Treasury for the 2006/07 tax year, the total spend by the government was some £587 billion. The figure was raised from a number of different areas which included :-
· Business Rates £22 billion
· VAT £80 billion
· Corporation Tax £50 billion
· Excise Duty £41 billion
· National Insurance £95 billion
· Income Tax £158 billion
· Council Tax £23 billion
· Other £84 billion
· Borrowing £34 billion
Total £587 billion
How was the £587 billion spent by the government?
Check this out :-
· Law and Order £33 billion
· Industry, Agriculture and Employment £21 billion
· Debt Interest £30 billion
· Defence £32 billion
· Education £77 billion
· Transport £20 billion
· NHS £104 billion
· Other Health Services £28 billion
· Social Security £161 billion
· Other £59 billion
· Housing and Environment £22 billion
The above information gives a useful snap shot of how money is raised by the government and where it all goes. Social Security is by far and away the biggest drain on government resources which may help to explain why more and more is being spent to catch the benefit cheats.
One interesting figure from the above list is the governments borrowing figure, which is basically the annual shortfall on spending. There are occasions when the government do not spend all of the income received, although any left over funding would normally go towards paying off part of the nation debt.
An interesting breakdown, which gives you a glimpse of where your money is going, and what kind of return you are actually receiving!
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