The UK government has a budget of over 1 trillion pounds each year, which translates to about £15,000 per UK citizen. The main source of income for the government is income tax, contributing a quarter of its budget and projected to generate £303 billion in 2024/2025. VAT is the second-largest income source at £203 billion, followed by National Insurance at £168 billion. Other sources of government income include corporation tax, council tax, and excise duties. Capital gains tax, which does not include earnings from the lottery or sports betting, is also a significant source of revenue. Interestingly, money earned from in-person and online casino gambling is tax-free.
In addition to these sources, the government collects money from stamp duty, vehicle excise duty, and student loan repayments. The revenue generated goes towards various important sectors such as health, infrastructure, defence, and social protection. Social protection receives the most funding, with £371 billion allocated in 2024/2025 for pensions, benefits, health protection, and food vouchers. Healthcare is the second most significant expense, with a projected budget of £251 billion in the same year.
Education is another sector that receives a substantial amount of funding, with £131 billion dedicated to it in 2024/2025. Debt interest is also a significant expense for the government, with £109 billion expected to be repaid in the same year. National defence spending is set to increase in 2024/2025, with a budget of £57.1 billion allocated for that purpose.
The government also invests in sectors such as transport, industry, agriculture & employment, public order & safety, personal social services, housing & environment, and others. It is important to note that responsible gambling is encouraged, and for more information and advice, individuals can visit https://www.begambleaware.org. The content is intended for audiences above 18 years of age.
