1. 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

2. Source Material Appropriation Act 1996 Appropriation Act 2002
Published 24 July 1996
Covers government spending for the financial year
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
Latest Appropriation Act of Blair’s Labour government
Chancellor of the Exchequer is Gordon Brown
Louise Dore May 2003

3. 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

4. First: the figures
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

5. Spending in 1996
Louise Dore May 2003

6. Spending in 2002
Louise Dore May 2003

7. 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

8. 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

9. Spending in terms of GDP
Louise Dore May 2003

10. 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

11. 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

12. 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

13. Web-ography
All published legislation is available through Her Majesty’s Stationary Office at:
Publications of the National Office of Statistics are available at:
Louise Dore May 2003