Estimated FY 2026 Spending
for Governments in the United Kingdom

In fiscal year 2026 the governments in the United Kingdom are expected to spend about 44 percent of Gross Domestic Product. Most of the money goes for health care, education, pensions, and welfare programs.

Public Spending: Central and Local

Governments in the UK will spend £1,323.8 billion in 2026.

In fiscal 2026 HM Treasury estimates that central government spending will be £1,072.6. We estimate that local authority spending for 2026 will be £251.1.

Total spending at all levels of government in the United Kingdom is estimated to be £1,323.8 billion in 2026.

UK Public Spending: the Big Picture

The three big programs each cost over £100 billion a year.

Where does all the money go? It is really quite simple. Governments at both levels, central and local, spend about £224.6 billion a year on pensions, including the state pension and civil service pensions. The government spends about £256.7 billion a year on health care, principally the NHS. Governments spend about £120.8 billion a year on education at all levels, at both the central government at the local authority level. The central government spends £73.6 billion a year on defence, including the Ministry of Defence, the Foreign Office and aid programs. Governments spend £188.0 billion on “Social Security” or welfare programs. All other spending amounts to about £250 billion, including interest on the national debt. It all adds up to £1,323.8 billion for 2026.

Government Spending: the Details

About 0 percent of public spending comes from the central government; About 19 percent is spent by local authorities.

The central government is budgeted to spend £1,072.6 billion in FY 2026. Pension programs, including the state pension and civil service pensions, will cost about £224.6 billion; health care and the NHS will cost £143 billion; defence, including the Ministry of Defence and the Foreign & Commonwealth Office, will cost about £73.6 billion. Welfare, or Social Security, costs for the central government will come in at £120.7 billion, and central government education expenditures are budgeted at £61.3 billion. Interest on the national debt is estimated at £101.4 billion.

We estimate local authorities will spend about £251.1 billion in FY 2026. The biggest expenditure is £67.3 billion for welfare. Then comes £59.4 billion for local authority education, and £23.1 billion for protection: police and fire. Local authorities will spend £12.0 billion on transport, and about £50 billion on all other programs.

Pie Chart of Total UK Public Spending

Although the four big government programs — pensions, health care, education, and welfare — each cost about £100 billion a year they are distributed unequally between the levels of government.

Chart 2.04: Total Spending Details

Total government spending in the United Kingdom, including central government and local authorities, is expected to total £1,323.8 billion in 2026. The total features four major functions. Of the total spending, pensions take a 17 percent share, health care takes a 19 percent share, education a 9 percent share, and welfare 14 percent of spending.

Pie Chart of Central Government Spending

Chart 2.05: Central Spending Details

Central government spending is budgeted at £1,072.6 billion for FY 2026, and includes three major functions. Health care, the National Health Service, takes 24 percent of central spending, Pensions take 21 percent of central spending, Welfare takes 11 percent of central spending.

Pie Chart of Local Authority Spending

Chart 2.06: Local Spending Details

Local authority spending, as estimated by ukpublicspending.co.uk, will total about £251.1 billion in FY 2026, and features three major functions. Education takes a 24 percent share, welfare takes 27 percent of local authority spending, and protection, police and fire, takes a 9 percent share of local authority spending,