UK government spending rise above 50% of GDP

|
Newscom

For the first time ever, at least during the absence of a major war, U.K. government spending rose above 50% of GDP in 2009. During the reign of so-called "New Labour" since 1997, government spending is up from 40% of GDP to 52% in 2009, and a projected 53% in 2010. This means that the ratio has on average risen by one percentage point per year during "New Labour". The increase has been fastest during the last two years, but it has risen ever since 2001.

The increase has in part been financed by tax increases, but mostly through a soaring budget deficit.

Though most other countries have seen their burden of government increase during the recent slump (Israel is one of very fex exceptions), the U.K. has seen a bigger increase than elsewhere, and unlike most others (the U.S. being and additional example) the burden of government spending was rising even during the boom.

As a result, government spending is now higher than in Germany and most other continental European countries, after previously having been much lower.

While I can't say I trust David Cameron, these numbers provides a very strong case for voting Gordon Brown out of office during the election that will come later this year.

Add/view comments on this post.

------------------------------

The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger's own site by clicking on the link above.

You've read  of  free articles. Subscribe to continue.
QR Code to UK government spending rise above 50% of GDP
Read this article in
https://www.csmonitor.com/Business/Stefan-Karlsson/2010/0324/UK-government-spending-rise-above-50-of-GDP
QR Code to Subscription page
Start your subscription today
https://www.csmonitor.com/subscribe