Government revenue in the United Kingdom steadily increased from £150 billion in the mid 1980s to £550 billion in 2008. But its steady increase was impacted in the Great Recession of 2008-09.

Chart 3.11: Government Revenue in pounds

UK Government revenue amounted to £150 billion in the mid 1980s, and then breached £200 billion in 1990 just before Black Wednesday crisis of 1992.

Revenue growth resumed in the mid 1990s, breaching £300 billion in 1998 before pausing at £400 billion in the early 2000s. Revenue contracted from £550 billion in 2008 to £516 billion in 2010 before resuming growth, almost hitting £600 billion in 2013.

Estimated revenue for the year ending March 2026 was £1,207.0 billion.

Chart 3.12: Government Revenue as Percent GDP

Viewed as percent of GDP, revenue started out at 40.8 percent of GDP in 1985 before falling to 35 percent of GDP in the mid 1990s. Since the mid-1990s UK government revenue has stayed in a band between 35 percent and 39 percent of GDP.

Estimated revenue for the year ending March 2026 was 39.4 percent GDP.

Recent Revenue by Government Level

Almost all revenue in the United Kingdom is collected by the central government.

Chart 3.13: Government Revenue by Level

In 1990 central government revenue was 34 percent of GDP and local authority revenue was 4.1 percent of GDP. But starting in 1991 the revenue collected by local authorities has declined down to about 2 percent of GDP. p class=brief> Central government revenue since the mid 1990s has fluctuated between 33 percent and 37 percent of GDP.

Chart Key:

- Local direct revenue

- Central direct revenue

Revenue by Type

Income tax revenue fluctuates; ad-valorem taxes do not.

Chart 3.14: Total Recent Revenue by Type

In 1990 UK government broke down as 13 percent of GDP for income taxes, 5.9 percent for National Insurance contributions, 14.7 percent of GDP in indirect taxes and 4.6 percent in business revenue.

Since the 1990s income tax has collected between 11.3 percent and 14.2 percent of GDP; National insurance collections have ranged from 5.6 percent to 6.7 percent of GDP. Indirect taxes such as VAT and excise taxes have ranged from 13.5 percent to 15.4 percent of GDP. Business revenue, starting at 4.6 percent of GDP has declined to a consistent range of 2 percent to 3 percent of GDP.

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