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How might the increase in public expenditure over the last ten years be explained? Why might the government want to reduce real public expenditure?
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How might the increase in public expenditure over the last ten years be explained? Why might the government want to reduce real public expenditure? An increase in public expenditure Every year the government spends billions of pounds providing a wide range of public services such as social security and the NHS. Typically, the government will spend around £300 billion each year, so for the government to spend this huge amount there must be some very good reasons. Over the course of the past ten years, the amount that the government has spent annually has risen sharply. This increase in spending has lead to budgetary problems for the government, who must either take the unpopular step of raising taxes, cutting spending in areas which are considered to less important than the areas in which spending has increased greatly, or having to increase the PSBR. During the first section of this essay, I intend to...
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