Where does the UK’s public deficit come from?
Revenue and spending of UK central and local government since 1995: the NHS, pensions, the Bank of England bill, and a comparison with France.
Scope: UK general government (central and local government), national accounts, calendar years, OECD and ONS data. · Data as of Oct 27, 2026.
Key takeaways
- In 2025, UK general government spent £1,410bn against £1,247bn of revenue: a deficit of £163bn, or 5.3% of GDP. Debt stands at £3,106bn, or 102.4% of GDP (Maastricht definition).
- Over the long run, health is the main driver of spending: the NHS went from 5.0% to 8.7% of GDP between 1995 and 2024 (+3.8 points). Pensions gained +1.8 points (from 6.7% to 8.5%). Revenue rose almost as much, so the 2024 deficit (−5.9% of GDP) is close to that of 1995 (−5.4%).
- Since 2019 the deficit went from −2.3% to −5.9% of GDP. Spending gained +5.8 points: general services (+1.2), health (+1.2), interest (+0.7), defence and security (+0.7), family and exclusion (+0.6), economic affairs (+0.5), pensions (+0.5). Revenue offset part of it (+2.2 points), mainly income tax (+1.8, with frozen tax thresholds) and corporation tax (+1.0, rate raised from 19% to 25% in 2023).
- A bill inherited from quantitative easing: since late 2022 the Treasury has been covering the Bank of England’s losses on its bond purchases. These payments reached £37bn in 2023 and £42bn in 2024 (1.5 points of GDP) and explain the rise in “general services”. Part of UK debt is also inflation-linked, which pushed interest up (2.9% of GDP in 2024, against 2.0% in France).
- Compared with France, the UK spent 11 points of GDP less in 2024 (46.1% against 57.0%) and levied 11 points less (40.2% against 51.2%): the deficit is almost the same. The gap comes mainly from pensions (−6.2 points): the UK state pension is modest and supplementary pensions largely go through private funds. Health costs nearly as much (8.7% against 8.9% of GDP). On the revenue side, social contributions are half the French level (−8.5 points).
Revenue and spending, year by year
For each year: left bar = revenue (grey), right bar = spending (colours), stacked by type. The gap between the two bars is the deficit. Tap an item in the legend to isolate it. Spending by function is published up to 2024; the “by nature” view goes up to 2025.
What widened (or narrowed) the deficit
Change of each item in points of GDP between two years. Spending that rises, or revenue that falls, widens the deficit (bar to the left).
Public balance: −2.3% of GDP in 2019, −5.9% in 2024, a change of −3.6 points. Contribution of spending: −5.8 pt; of revenue: +2.2 pt.
- Pensions
- Health
- Other social benefits
- Interest on debt
- Education
- Economic affairs
- Other public spending
- Revenue
Detail by item · 2019 → 2024
| Detail by item | Side | 2019 | 2024 | Change (pt) | Effect on balance (pt) |
|---|---|---|---|---|---|
| General services (excluding debt) | Spending | 2.22 | 3.44 | +1.23 | −1.23 |
| Health (hospitals, outpatient care, medicines) | Spending | 7.55 | 8.72 | +1.17 | −1.17 |
| Other taxes on production (business rates, fuel, alcohol, tobacco…) | Revenue | 5.82 | 5.01 | −0.81 | −0.81 |
| Interest on debt | Spending | 2.18 | 2.87 | +0.68 | −0.68 |
| Defence, police, justice | Spending | 3.71 | 4.38 | +0.67 | −0.67 |
| Family, housing benefits, social exclusion | Spending | 4.07 | 4.69 | +0.62 | −0.62 |
| Economic affairs (transport, business support, energy) | Spending | 3.46 | 3.95 | +0.50 | −0.50 |
| Pensions (old age + survivors) | Spending | 8.06 | 8.52 | +0.46 | −0.46 |
| Environment, community amenities, culture | Spending | 1.89 | 2.11 | +0.23 | −0.23 |
| Sickness and disability benefits | Spending | 2.30 | 2.52 | +0.22 | −0.22 |
| Other current taxes (council tax…) | Revenue | 2.36 | 2.25 | −0.11 | −0.11 |
| Social contributions | Revenue | 8.00 | 7.94 | −0.06 | −0.06 |
| Education | Spending | 4.85 | 4.86 | +0.01 | −0.01 |
| Unemployment | Spending | 0.06 | 0.05 | −0.01 | +0.01 |
| VAT | Revenue | 6.85 | 6.86 | +0.01 | +0.01 |
| Capital taxes (inheritance…) | Revenue | 0.23 | 0.28 | +0.05 | +0.05 |
| Other revenue (sales, property income, transfers) | Revenue | 3.51 | 3.83 | +0.31 | +0.31 |
| Corporate income tax | Revenue | 2.41 | 3.38 | +0.97 | +0.97 |
| Household income taxes | Revenue | 8.84 | 10.63 | +1.79 | +1.79 |
| Total revenue | Revenue | 38.02 | 40.18 | +2.15 | +2.15 |
| Total spending | Spending | 40.34 | 46.11 | +5.77 | −5.77 |
| Balance | Balance | -2.32 | -5.93 | −3.61 | −3.61 |
The drivers
Health and pensions
Public spending on health (NHS) and pensions (old age + survivors), % of GDP.
- Health · 8.7% (2024)
- Pensions · 8.5% (2024)
The demographic driver
Share of people aged 65 and over (%), World Bank.
- Aged 65+ · 19.7% (2025)
Public balance
% of GDP. Negative = deficit. The 2009 and 2020 troughs are the financial crisis and Covid.
- Balance · −5.3% (2025)
Public debt
% of GDP, Maastricht definition (nominal value), end of year, ONS.
- Debt · 102.4% (2025)
Bank of England losses covered
Treasury payments to the Bank of England to cover losses on its bond purchases (QE), % of GDP, ONS.
- Payments · 0.7% (2025)
Who carries the deficit?
Balance by level of government, % of GDP. The UK has no separate social security funds.
- Central government · −4.7% (2025)
- Local government · −0.6% (2025)
United Kingdom and France
Same OECD accounts for both countries, same scope (general government), in % of GDP. Debt: Maastricht definition for both (ONS for the UK, Eurostat for France). To the right of a gap chart, the UK is above France.
Public spending, % of GDP
- United Kingdom · 46.3% (2025)
- France · 57.3% (2025)
Public revenue, % of GDP
- United Kingdom · 41.0% (2025)
- France · 52.2% (2025)
Public balance, % of GDP
- United Kingdom · −5.3% (2025)
- France · −5.1% (2025)
Public debt, % of GDP
- United Kingdom · 102.4% (2025)
- France · 115.7% (2025)
Structure of revenue and spending
One bar per country and side, stacked by item, % of GDP.
- Pensions
- Health
- Other social benefits
- Interest on debt
- Education
- Economic affairs
- Other public spending
- Social contributions
- Household income taxes
- VAT
- Other taxes on production
- Corporate income tax
- Other revenue
Where the UK spends and levies more (or less) than France
UK minus France, in points of GDP, same year. To the right, the UK is higher.
- United Kingdom − France · 2024
Spending by nature
What public money pays for: wages, benefits, purchases, investment… The NHS buys much of its care and services from providers (operating purchases), while France reimburses care (benefits in kind).
- Cash benefits (pensions, allowances)
- Purchased benefits in kind (reimbursed care…)
- Public employee compensation
- Operating purchases
- Interest on debt
- Subsidies
- Investment
- Other transfers
UK − France gap by type of spending, points of GDP
- United Kingdom − France · 2025
Yearly data
Show the table of revenue, spending, balance and debt by year
| Year | Revenue | Spending | Balance | Balance (% of GDP) | Debt (% of GDP) |
|---|---|---|---|---|---|
| 2025 | £1,247bn | £1,410bn | −£163bn | −5.3% | 102.4% |
| 2024 | £1,167bn | £1,340bn | −£172bn | −5.9% | 99.9% |
| 2023 | £1,116bn | £1,285bn | −£169bn | −6.1% | 98.8% |
| 2022 | £1,059bn | £1,175bn | −£116bn | −4.5% | 97.4% |
| 2021 | £928bn | £1,101bn | −£173bn | −7.4% | 103.4% |
| 2020 | £827bn | £1,102bn | −£275bn | −12.9% | 104.9% |
| 2019 | £861bn | £913bn | −£53bn | −2.3% | 85.0% |
| 2018 | £834bn | £882bn | −£49bn | −2.2% | 85.7% |
| 2017 | £807bn | £861bn | −£54bn | −2.6% | 86.2% |
| 2016 | £764bn | £830bn | −£66bn | −3.3% | 87.2% |
| 2015 | £726bn | £813bn | −£87bn | −4.5% | 87.3% |
| 2014 | £701bn | £804bn | −£103bn | −5.5% | 86.5% |
| 2013 | £686bn | £781bn | −£95bn | −5.3% | 84.9% |
| 2012 | £644bn | £781bn | −£137bn | −8.0% | 84.1% |
| 2011 | £638bn | £762bn | −£124bn | −7.4% | 81.1% |
| 2010 | £612bn | £762bn | −£149bn | −9.3% | 75.5% |
| 2009 | £577bn | £732bn | −£156bn | −10.0% | 64.5% |
| 2008 | £625bn | £706bn | −£81bn | −5.1% | 50.6% |
| 2007 | £594bn | £635bn | −£41bn | −2.6% | 43.0% |
| 2006 | £561bn | £602bn | −£40bn | −2.7% | 41.9% |
| 2005 | £533bn | £577bn | −£44bn | −3.1% | 40.9% |
| 2004 | £488bn | £530bn | −£42bn | −3.2% | 39.7% |
| 2003 | £448bn | £488bn | −£40bn | −3.2% | 36.6% |
| 2002 | £424bn | £447bn | −£23bn | −2.0% | 35.3% |
| 2001 | £418bn | £414bn | £3.8bn | 0.3% | 34.8% |
| 2000 | £402bn | £387bn | £15bn | 1.4% | 37.5% |
| 1999 | £371bn | £365bn | £6.8bn | 0.7% | 40.3% |
| 1998 | £350bn | £354bn | −£3.9bn | −0.4% | 41.8% |
| 1997 | £321bn | £342bn | −£21bn | −2.2% | 43.9% |
| 1996 | £300bn | £337bn | −£37bn | −4.1% | 48.0% |
| 1995 | £283bn | £329bn | −£46bn | −5.4% | 48.6% |
Sources and method
- OECD, government accounts. Table 12: total revenue and spending, detail of taxes and contributions, spending by nature, balance by level of government. Table 11: spending by function (COFOG), 1995–2024. ONS data reported to the OECD, calendar years. France in the comparison is read from the same tables.OECD Table 12OECD Table 11 (COFOG)
- ONS. Maastricht gross consolidated debt at nominal value, end of calendar year (table M1). Treasury payments to the Bank of England Asset Purchase Facility (series MF7A).ONS — UK government debt and deficitONS MF7A
- World Bank and Eurostat. Share of people aged 65+ (World Bank); France’s Maastricht debt (Eurostat).Banque mondiale SP.POP.65UP.TO.ZSEurostat gov_10dd_edpt1
- Method. Constant pounds: current pounds adjusted by the GDP deflator (pounds of the latest year). Pensions = old age (GF1002) + survivors (GF1003); health = GF07; interest = GF0107. Support for the unemployed mostly goes through Universal Credit, which is not classified as “unemployment”: that line is therefore very small. The small gap between the COFOG total and total spending is put in “General services”.
- Further reading. Office for Budget Responsibility (forecasts and fiscal risks), ONS Public sector finances, HM Treasury (PESA), Institute for Fiscal Studies.OBRONS Public sector financesHM Treasury PESAIFS