There is alarm at escalating spending per head under Rachel Reeves (Image: PA)
Government spending has rocketed since the pandemic and will be the equivalent of ￡24,095 per adult – nearly two-thirds of the average worker’s annual salary – in 2025-26, the Centre for Policy Studies (CPS) has warned. The think tank co-founded by Margaret Thatcher warns that by 2028-29 spending will have increased by 13% on 2019-20.
It says the cost of paying interest on the national debt was ￡1,955 per adult in 2024-25 – “more than double the pre-pandemic level of ￡935”. An analysis by the CPS found “working age and child welfare” spending has “surged” 11% above pre-pandemic levels to ￡2,757 per adult for 2024-25. It expects health spending will reach ￡4,056 per adult by 2028-29 – “22% higher than pre-pandemic”.
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Daniel Herring, head of fiscal and economic policy at the think tank, said: “A situation whereby the Government spends nearly two-thirds of the average salary, per adult, providing public services is not sustainable. Not only will the cost of public services be 13% higher than pre-pandemic by the end of the decade for little discernible improvement in quality or outcome, but the trajectory is set to continue.
“An ever-increasing percentage of public spending is being eaten up by welfare spending, the NHS, and servicing our debts. The British public will rightly be asking why they are not getting value for money.”
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The CPS has calculated that between 2019-20 and 2028-29 total Government spending per adult will rise in real terms from ￡21,361 to ￡24,189.
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For debt interest, it will go up from ￡935 to ￡2,042; for total welfare from ￡5,457 to ￡5,894; for health from ￡3,328 to ￡4,056; for education from ￡1,643 to ￡1,795; and for defence from ￡1,029 to ￡1,297.
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A Treasury spokesperson said: “The spending review allocated money to the priorities of the British people, our security, our health service and growing the economy to put more money in people’s pockets.
"Our spending plans will enable progress towards every milestone in the plan for change – which means shorter waiting times, investment in frontline policing, more children ready to learn, more homes, higher living standards, more home-grown clean-power, stronger security for nations and borders.”
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