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In 2025/26, the government of the United Kingdom had an expenditure of over 1.36 trillion British pounds, compared with 1.29 trillion in the previous financial year. Between 2011/12 and 2019/20, the UK's government spending increased at a relatively stable pace before a sudden spike in spending in the 2020s. After spending just under 885 billion pounds in 2019/20, government spending surpassed 1.1 trillion the following year, due to the high level of public spending that occurred during the COVID-19 pandemic. 

Main outlays of the UK government

The government is expected to spend approximately 379 billion British pounds on social protection in the 2025/26 financial year, followed by 277 billion on health, and 146 billion on education. As a share of GDP, social protection spending has consistently been the government's main outlay for several decades. Health spending has, however, become far more prominent. In the late 1970s, the government spent more on education, and defence than it did on health, with health spending increasing from 3.9 percent in 1978/79, to 8.4 percent by 2024/25. Defence spending in particular was cut significantly after the end of the Cold War, although geopolitical instability is forcing the government to rethink these cuts. 

Spending cuts politically dangerous for Labour

Since coming to power in July 2024, the current Labour government has seen its popularity plummet drastically, with approval ratings similar to the unpopular Conservative government it replaced. Part of the reason for this have been Labour's attempts to reform aspects of the UK's welfare system. Shortly after winning the last election, Labour announced cuts to winter fuel payments for pensioners, a policy they paid dearly for in political capital and one that was reversed by June 2025. An attempt to push through further reforms was effectively defeated the following month, leaving the government in a tricky fiscal situation for the next budget.