Where does the money go?

Having just got back from the UK, I’m wondering about all the taxes on, well, just about everything. These extra taxes acting as a drag on the rest of the economy. So I asked myself, where is all this money actually going? Cui Bono? Who benefits? Does taxation, as so many of its advocates claim, actually increase, or decrease ‘fairness’? These are all fair questions which need fair answers.

At present UK public spending outdoes the tax take by an estimated £84 billion per year. Most of that disparity is interest payments an the estimated £2.2 trillion public debt if you factor in the public ownership, liabilities and support of RBS, Lloyds TSB etc. Total 2012-13 tax take by HMRC, about £468 billion. According to their own figures. So where’s the £648 billion figure come from? Confused? Join the club. £180 billion isn’t just chump change. Besides, government doesn’t make money, it has none of its own and only spends taxpayer dollar.

The approximate 2013 UK public spending breakdown is as follows. Public Pensions for well, people the workforce has decided it no longer needs. Let’s ignore all those overpaid leeches on salaries well above their real pay grade for the moment; £139 billion. National Health Care, you know, for that wonderful ‘free’ service which includes such joys as the ‘Liverpool Care Pathway‘ and compensation payments to Ambulance chasing Lawyers; over £124 billion. State Education, the edifice which no amount of political meddling seems to improve; over £87 billion. Defence, for all those wars the UK really can’t afford to fight, including the one the EU wants to declare on Russia; about £42 billion. Social Security, which includes all those ‘tax credits’ which would be cheaper to run if the tax wasn’t taken in the first place; over £117 billion. State Protection, whatever that means; over £31 billion. Transport about £17 billion. Which is a lot to cover cones, contraflows and potholes. General Government, an opaque description if ever I saw one; over £14 billion. Other Public Services, hmm, large Rattus Norvegicus smelt here; over £54 billion. Public Sector Interest, on the money the Government borrowed to buy the votes of the ill informed and lazy; over £47 billion. Additional Balance, or should that read ‘petty cash’; over £2 billion. Total Spending about £675 billion, maybe a little more, maybe a little less. The UK’s EU contribution hidden somewhere in those figures is about £8.7 billion. Source here. Somewhere in that lot is the electronic money ‘printed’ by ‘Quantative easing’ of well over £60 billion and paid direct to banks. No wonder we hear about planned raids on savings and other legalised theft like ‘Green taxes’. It’s a financial plughole of doom. Which will be the last metaphorical straw on the proverbial taxpayers back? Bank accounts raided at will?

According to this neat little infrographic from the Guardian, the difference is £84 billion, which needs to be ‘borrowed’. No idea from whom, but £47 billion in interest payments alone? My one remaining reader will note the disparity between the two sets of figures referenced. Hey, but what’s the odd billion or three between friends, eh?

The discerning reader, having done a little digging, will also note the step increase in UK taxation that happened back in 2000 and the flattening in public spending since 2011. So yes, Slaphead and friends are trying, but the purchase of the banks and resultant QE have doomed the UK taxpayer to ever increasing interest payments. Unless those debts and liabilities are sold off, those interest payments will continue to head for the stars faster than a Saturn 5 booster with a nuke up its arse.

Last time it took the UK eighteen years to bring the taxation rate and public spending into financial balance. 1998 / 9 I believe. Then Blair and his pile of grinning idiots were voted in, public debt skyrocketed and the tax take hasn’t caught up since. Figures don’t lie. No wonder the politicians are trying to skim off more and more all the time. We were told all this extra spending was all about ‘fairness’. What it has done is lumber current and future generations with an escalating debt bigger than World War 2. Which I don’t think has been fair at all.

4 thoughts on “Where does the money go?”

  1. Nice post. I always wonder, where does the money come from too? Is it not possible to just write off these debts and not pay. If we can’t afford to pay off the debt, where does the Country go from there.

    1. Billy, I don’t think anyone is really up to grasp the UK’s fiscal nettle. Labour will never do it, or the Limp Dems, and the Tories certainly wouldn’t dare; it would be electoral suicide. Or so they think. I don’t think UKIP could handle it either, if push came to shove.

        1. It’s not just the UK. The USA will be the big one. China owns all their markers, so they’ll be hit hard too. The EU will be as much use as a chocolate teapot (So what’s new?) Maybe the EU will finally pick a shooting war with the Russkies over Ukraine.

          Maybe miracles will happen. I truly don’t know.

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