Government spending in the United Kingdom

The most significant area of government spending is welfare (£341 billion in financial year 2023–24), Elsewhere, significant public spending is dedicated to health as a result of the taxpayer-funded National Health Service. In financial year 2023–24, £177 billion is budgeted for NHS England. Around half of the funding Local Authorities receive in England is through central government spending, principally from the Department for Levelling Up, Housing and Communities. This comes in the form of both a core grant to councils to cover operating costs, known as the Local Government Finance Settlement, and grants for specific initiatives such as the Levelling Up Fund. Debt interest has grown as a proportion of government spending in the last few years as a result of rising interest rates, and increased debt due to primarily to the cost of the COVID pandemic. In financial year 2018–19, debt interest was £43 billion - around 5% of total government spending compared to around 10% in 2023–24. HM Treasury controls the overall budget for administration in central government, which largely comprises staff costs. In 2023–24, this totalled £14 billion. == Capital spending ==

Central government spending can be broken down into capital and revenue (also known in government as 'resource') spending. Capital is often scrutinised as a measure of government investment in public services, such as on buildings, equipment and IT. Government capital spending in 2023-24 totals £134 billion, with the biggest spending departments being the Department for Transport, the Ministry of Defence and the Department for Science, Innovation and Technology, which together comprise around half of all capital spending. Some of the largest capital projects being run by central government at the moment include HS2 and the Dreadnought programme. == Recent history ==

Government spending has grown significantly since the COVID-19 pandemic. The table below shows total government spending over the previous five financial years and the plans for the subsequent two years, which form the remainder of this Spending Review period. ==Local government spending==

Local government spending is the responsibility of local authorities, under the supervision of the respective national governments: • English local authorities, under the supervision of the Secretary of State for Housing, Communities and Local Government • Scottish local authorities, under the supervision of the Cabinet Secretary for Finance and Local Government • Welsh local authorities, under the supervision of the Cabinet Secretary for Local Government • Northern Ireland local authorities, under the supervision of the Department for Communities ==See also==