Public Expenditure As % Of GDP
Public Expenditure (Total Managed Expenditure) is currently around 42% of GDP, up from 38.9% in 1997-98. The government forecasts an increase to 42.4% in 2008-09, a 3% increase under Labour.
Under the 1979-97 Tory governments, spending was reduced by about 5% of GDP, a substantial achievement.
The IFS have an excellent briefing note.
posted by Mike D at 11:11 AM
2 Comments:
Why was the 5% cut a 'substantial achievement'?
Growth was lower under the Tories than this current Labour government. Surely (according to you) growth should have soared under the tax cutting Tories!
Even your own charts, show that UK govt expenditure as a percentage of GDP is low by both historical and international standards.
The NHS in fact gives good value for money, you only have to look to the US for evidence of that, they spend twice as much per head, but 40 million are completely uninsured.
The French and Germans tax far more and spend far more on their health, education and transport, that is why their infrastructuure is much better. Yet they have managed higher post-war growth than us, what happened to your so called theory of 'low tax, high growth'.
Tory propaganda, that's all this site is!
I think the previous comment sterngthens my case for financial cross-subsidy between sections of the population to be made overt. Instead of paying benefits in kind (e.g. shabby health and education provision), give individuals a sort of debit card and budget. This would have the same effect as vouchers in education, but in the case of health people might have an annual budget for discretionary (as opposed to emergency) treatment, which could be carried-forward if not used. Still "free at the point of use", yet applying consumer pressure to improve value for money. This would also allow room for deductions for failure to keep medical appointments, a major cost/barrier to improvement.
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