In fiscal 2027 the Office of Budget Responsibilty estimates that central government revenue will be £1,161.4 billion and that local authority revenue for 2027 will be £73.6 billion.

Total public revenue in the United Kingdom is estimated to be £1,235.0 billion in 2027.

UK Public Revenue: the Big Picture

The biggest tax bite is from indirect taxes like VAT and excise taxes.

Table 3.02: Total Revenue Breakdown

In 2027 it is expected that income tax will collect £460.7 billion, National Insurance collections will amount to £204 billion, indirect taxes will amount to £443.5 billion, and Business revenue will be £124.3 billion.

Government Revenue: the Details

Almost all public revenue is collected by the central government.

Table 3.03: Total Revenue Details

The three big sources of revenue for the UK central government in 2027 will be income tax at £460.7 billion, national insurance at £204 billion and indirect taxes at £392.6 billion, for a total of £1,235.0 billion.

We estimate local authorities will collect about £50.9 billion in council tax in FY 2027 and £19.7 billion in other revenue, for a total of £73.6 billion.

Pie Chart of Total UK Public Revenue

Indirect taxes are the biggest bite of UK taxes, at 37 percent of total revenue.

Chart 3.04: Total Revenue Details

Total UK public revenue will amount to £1,235.0 billion in 2027. Of this 37 percent will be in income taxes, 17 percent in national insurance contributions, 36 percent in indirect taxes, and 10 percent in business and other revenue.

Pie Chart of UK Local Authority Revenue

Indirect taxes are the biggest bite of local taxes, at 68 percent of total revenue.

Chart 3.06: Total Revenue Details

Total local authority public revenue will amount to £73.6 billion in 2027. Of this 69 percent is in indirect taxes, and 27 percent is in business and other revenue.

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