HM Government expenditure comes from our taxation and borrowings. How is this money spent ?

HM Government collects about £580 Billion in Taxation and has to borrow a further £120 Billion on the global banking and financial markets (the Bond Market). We are running a deficit, spending more than we earn.

With this approximate £700 Billion, where does the cash go ? Here are the rough numbers:-

£202 Billion Benefits and Pensions
£202 Billion Health
£69  Billion Education
£42  Billion Debt interest
£36  Billion Defence
£30  Billion Local government
£26  Billion Scotland
£19  Billion Law and Order
£14  Billion Wales
£10  Billion Northern Ireland
£8   Billion EU contributions
£7   Billion Transport
£6   Billion International aid
£125 Billion Other departments

Total government spending £698 Billion.

£42 Billion on Debt Interest, this is the interest HM Government has to pay on the bonds (Gilts) issued to fund the deficit. We spend more on our interest repayments, than we spend on defence. What is worrying is that with an aging population, the cost of pensions and healthcare are going to rocket. Looking after our elderly families is essential, and our retired population of about 12 million deserve decent pensions. However when debt interest payments on the ballooning debt mountain are non-trivial at £42 Billion, cutting the welfare, state pension and health budgets is simply too easy for governments. We need underlying investment assets to pay decent pensions for our retired citizens.