An analysis of UK government spending in 1996 and 2002 by Louise Dore Appropriation Acts An analysis of UK government spending in 1996 and 2002 by Louise Dore

Source Material Appropriation Act 1996 Appropriation Act 2002 Published 24 July 1996 Covers government spending for the financial year 1996-97 Final Appropriation Act of Major’s Conservative government Chancellor of the Exchequer was Kenneth Clarke Appropriation Act 2002 Published 8 July 2002 Covers government spending for the financial year 2002-03 Latest Appropriation Act of Blair’s Labour government Chancellor of the Exchequer is Gordon Brown Louise Dore May 2003

Classes Spending is listed within categories or ‘classes’ which are roughly equivalent to the various government departments I have had to merge some of these due to department changes between 1996 and 2002 For example: classes V and VI are merged because the old Departments of Transport and the Environment became one new Department for Transport, Local Government and the Regions under Labour Louise Dore May 2003

First: the figures 1996 2002 Class I: Ministry of Defence £25,147,319,000 £36,725,624,000 Class II: Foreign Office £3,017,714,000 £4,367,391,000 Class III: Farming and Rural Affairs £5,106,121,000 £4,785,909,000 Class IV: Dept Trade and Industry £4,436,355,000 £5,877,511,000 Classes V and VI: Transport and Regions £45,967,980,000 £57,176,707,000 Class VII: Home Office £6,556,672,000 £10,850,262,000 Class VIII: Lord Chancellor's Dept £3,003,041,000 £3,759,648,000 Class X: Heritage/Culture, Media and Sport £2,920,755,000 £3,495,582,000 Class XI: Education £18,835,204,000 £26,723,134,000 Class XI: Health £39,244,874,000 £61,674,572,000 Class XII:Social Security/Work and Pensions £50,493,359,000 £58,257,626,000 Class XIII: Scotland Office £14,491,880,000 £16,564,307,000 Class XIV: Wales Office £6,499,390,000 £8,671,992,000 Class XV: NI Office £3,271,428,000 £9,275,065,000 Class XVI: Treasury and Inland Revenue, etc. £4,151,662,000 £4,879,178,000 Class XVII: Cabinet Office £3,345,885,000 £3,420,462,000 Class XVIII: Parliamentary Offices £1,136,610,000 £1,550,999,000 Total: £237,626,249,000 £318,055,969,000 Louise Dore May 2003

Spending in 1996 Louise Dore May 2003

Spending in 2002 Louise Dore May 2003

Spending As you can see from the pie charts, spending in terms of absolute percentage has remained roughly the same The largest areas of spending are: Dept of Work and Pensions - formerly the DSS Health Transport and the regions The level of spending on transport and the regions is surprising to most, considering how little improvement appears to be made Louise Dore May 2003

Adjusting the figures These figures do not have much relevance unless adjusted for inflation and the growth of the economy in the intervening period The Office of National Statistics gives Gross Domestic Product (GDP) at current prices (i.e. adjusted for inflation) There was a 37% increase between 1996 and 2002 Louise Dore May 2003

Spending in terms of GDP Louise Dore May 2003

Spending in terms of GDP As this graph shows: few areas of government spending have increased substantially none have increased by a third, in line with the growth in the economy some have decreased Overall government spending has decreased from 31.18% of GDP in 1996 to 30.49% in 2002 Surprised? Those who expected “tax-and-spend” Labour might be! Louise Dore May 2003

Case studies Education, education, education? An injection of cash The Department of Education has received a minuscule 3.6% real-terms increase on its 1996 funding An injection of cash Health spending went up by more than 15% Going off the rails Funds for transport and the regions have fallen by 9.1% Keeping the peace The Northern Ireland office was the big winner, with a 107% boost to fund the Stormont Assembly Louise Dore May 2003

So what does this mean? It means the figures back up Gordon Brown’s famous infatuation with Prudence! Despite a booming economy and pressure from within his party, he has restricted public spending In this way he has managed to wipe £3 billion off the national debt] However, in the 20th century the trend has been for government spending to increase as proportion of GDP - will the 21st century really see a change? Louise Dore May 2003

Web-ography All published legislation is available through Her Majesty’s Stationary Office at: http://www.legislation.hmso.gov.uk/acts.htm Publications of the National Office of Statistics are available at: http://www.statistics.gov.uk Louise Dore May 2003