Where does the money come from to pay for public services such as the NHS, schools, transport, welfare and pensions?
The simplest answer is jobs.
Total UK public income will amount to some £775,000,000,000 in 2019.
- 58%, £450 billion, will be directly related to jobs through income tax (33%), National Insurance (18%) and business taxes (7%).
- 42%, £325 billion, will be collected in indirect taxes such as VAT.
As demand for UK-made products grows, so will the number of jobs, resulting in more money for our public services.
UK public income funds all public services. From the £818 billion 2019 budget (PESA):
- £152 billion is invested in health and social care. This funds hospitals, GPs, healthcare professionals, A&E services, mental health services etc.
- £166 billion is invested in pensions. This includes both the public sector and all state pensioners.
- £88 billion is invested in education. This funds schools, universities, teachers and teaching assistants, administrative staff, buildings and equipment.
- £48 billion is invested in defence. This funds general staff and soldiers, ships and sailors, aircraft and crew.
- £115 billion is invested in Social Security and £32 billion for State Protection.
Want to know more?
PESA – Public Expenditure Statistic Analyses on Gov.uk can be found here