UK Explained
More data · Government finances

Where the government’s money comes from, and where it goes

Each year the government collects money, mostly in taxes, and spends it on public services, pensions and more. Here is the big picture for 2025-26.

Want it personal? See where your own tax goes →

COLLECTED
£1,208.8bn

in taxes and other income, 2025-26

SPENT
£1,360.1bn

on public services and benefits

THE GAP
£151.3bn

borrowed, because spending was higher

That is about £19,574 spent for every person in the UK. How do we count this?

Where it comes from

Money collected, 2025-26

Income tax£326.9bn · 27%
National Insurance£200.8bn · 17%
VAT£179.9bn · 15%
Corporation tax£95.1bn · 8%
Fuel duties£24.6bn · 2%
Other taxes collected by HMRC£110.5bn · 9%
Council tax, business rates and everything else£271.0bn · 22%

Where it goes

Money spent, 2025-26

Pensions and benefits£407.3bn · 30%
Health£257.5bn · 19%
Interest on debt£130.3bn · 10%
Education£125.7bn · 9%
Defence£65.4bn · 5%
Police, courts and prisons£55.7bn · 4%
Transport£48.9bn · 4%
Business, science and other economic affairs£45.1bn · 3%
Everything else£224.2bn · 16%

Every £100 the government spends

This is how a typical £100 is divided.

Each square is £1 of every £100 the government spends.

Pensions and benefits£30
Health£19
Interest on debt£10
Education£9
Defence£5
Police, courts and prisons£4
Transport£4
Business, science and other economic affairs£3
Everything else£16

Over the last 20 years

SPENDING AND MONEY COLLECTED, AS A SHARE OF THE WHOLE ECONOMY
30%40%50%2006-072025-26
SpendingMoney collectedThe gap (borrowing)
View data table
YearSpendingMoney collectedGap
2006-0739.7%36.8%2.9%
2007-0840.0%37.3%2.7%
2008-0943.0%37.5%5.5%
2009-1046.0%35.7%10.3%
2010-1145.5%36.4%9.1%
2011-1244.4%37.1%7.3%
2012-1343.8%36.3%7.5%
2013-1442.2%36.5%5.7%
2014-1541.6%36.1%5.5%
2015-1640.8%36.4%4.4%
2016-1740.0%36.7%3.3%
2017-1839.7%37.0%2.7%
2018-1939.1%36.8%2.3%
2019-2039.1%36.9%2.2%
2020-2152.3%39.5%12.8%
2021-2243.4%36.8%6.6%
2022-2344.1%40.1%4.0%
2023-2444.1%38.9%5.2%
2024-2544.0%38.9%5.1%
2025-2644.3%39.4%4.9%
NATIONAL DEBT
£2.9tn

All the borrowing added up over many years. That is 94% of everything the UK economy produces in a year.

Interest on debt costs £130bn a year.

What changed this year

In 2025-26 the government collected £326.9bn in income tax, £24.1bn more than the year before (+8.0%).
In 2025-26 the government spent £407.3bn on pensions and benefits, £21.0bn more than the year before (+5.4%).
In 2025-26 the government spent £257.5bn on health, £15.1bn more than the year before (+6.2%).
Figures for 2025-26 are the latest published outturn and can be revised. Changes from year to year are in cash terms, before allowing for rising prices. Money in and out does not tell you who gains or loses. This page counts the whole UK public sector, including local government. “Everything else” includes the running of government, the environment, housing, culture and accounting adjustments.

Sources: HM Treasury, Public Expenditure Statistical Analyses (2026-07-16); HMRC, tax receipts and National Insurance contributions (2026-09-22); Office for National Statistics, public sector finances. Money collected = spending minus borrowing. Updated 4 Oct 2026.