UK Government Spending 2026

The UK government spent approximately £1.22 trillion in 2024/25, equivalent to around 45% of GDP. This is significantly higher than pre-pandemic levels and reflects increased spending on health, debt interest and social protection.

The NHS is the single largest item of discretionary spending at approximately £165 billion. The state pension alone costs £124 billion and is the largest single benefit expenditure.

Debt interest payments have surged to approximately £105 billion per year — one of the fastest-growing areas of government expenditure — as a result of higher borrowing during Covid and the subsequent rise in interest rates. This represents around 9p of every £1 the government spends.

How much does the UK government spend per year?

The UK government spent approximately £1.22 trillion in 2024/25, equivalent to around 45% of GDP or £18,100 per person. The largest areas are health (£165bn), social protection (£130bn), the state pension (£124bn) and debt interest (£105bn).

What is the biggest item of UK government spending?

The NHS is the largest area of discretionary spending at approximately £165 billion per year. Debt interest payments have grown rapidly to £105bn.

Has UK government spending increased in recent years?

Yes significantly. Total spending rose from around £800 billion in 2018/19 to over £1.2 trillion in 2024/25. The largest single increase was during Covid-19 in 2020/21.

How does UK government spending compare internationally?

At around 45% of GDP, UK government spending is broadly in line with France (57%), Germany (47%) and Italy (53%), but higher than the USA (37%).

What is the UK government's biggest financial challenge?

The fastest-growing item is debt interest at £105 billion per year. Structural pressures from an ageing population are also increasing demand for NHS and pension spending.