Labour's Spending over 10 years from 2000

The 2017 Labour manifesto promises much but the example of a less radical Labour party's spending when in government should not be ignored.

Labour Public Expenditure 2000 - 2010

The 2017 election campaign exhibits concerns over Labour's manifesto when it comes to proposed expenditure. This is after all concerned with tax payers' cash. It might be helpful therefore to review how a far less radical Labour party than today's led by Jeremy Corbyn had exercised "prudence" managing the UK's public finances when in government.

The table below illustrates how much each major principal government department cost the nation (in £Bn) over ten years from 2000.

  2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Pensions 65.7 73.4 78.3 79.9 81.8 86.4 89.9 93.9 98.8 108.5 116.4
NHS 49.6 54.3 60.0 66.2 74.9 83.0 89.5 94.7 102.4 108.8 116.9
Education 42.7 46.4 51.1 54.7 61.0 65.1 69.7 73.0 78.6 83.0 88.5
Defence 27.8 29.9 28.3 30.0 32.4 33.4 35.3 36.7 38.4 41.0 42.6
Welfare 59.1 57.7 59.2 65.5 74.0 78.0 81.5 83.5 90.4 99.6 110.7
Protection 18.3 20.2 22.9 24.2 26.1 28.5 29.3 30.2 31.5 33.9 34.1
Transport 8.7 9.3 11.3 14.9 16.2 16.0 17.0 19.8 20.5 20.9 23.0
General 9.9 8.7 11.5 11.5 12.0 14.2 16.3 16.8 16.9 16.0 15.9
Other 33.1 39.2 44.1 52.5 53.9 63.1 68.7 72.6 74.3 90.9 94.5
Interest 25.3 26.4 22.4 21.2 22.5 24.3 26.2 28.1 30.7 31.4 30.7
Total 340.2 365.5 389.1 420.6 454.8 492.0 523.4 549.3 582.5 634.0 673.3

How Key Components of the Economy Performed

The following table illustrates the levels of average earnings and other measures that relate to the state of key components of the economy.

Av. Earnings £ 21,719 22,448 22,788 22,843 23,147 23,541 23,883 24,041 23,958 24,036 23,504
GDP £Bn 1,262.6 1,290.2 1,319.8 1,371.9 1,415.5 1,461.3 1,501.5 1,553.0 1,541.0 1,461.4 1,485.6
Public Debt £Bn 349.3 316.7 323.1 356.2 391.0 446.5 487.2 523.6 557.2 767.1 1010.6

Public Sector: Av. Earnings: GDP and Debt

The following table compares the accrued percentage growth of UK public expenditure under Labour over the ten years to 2010, with the growth of earnings, GDP and Debt.

Public Sector 0.0% 7.4% 14.4% 23.6% 33.7% 44.6% 53.9% 61.5% 71.2% 86.4% 97.9%
Av. Earnings 0.0% 3.4% 4.9% 5.2% 6.6% 8.4% 10.0% 10.7% 10.3% 10.7% 8.2%
Public Debt 0.0% -9.3% -7.5% 2.0% 11.9% 27.8% 39.5% 49.9% 59.5% 119.6% 189.3%

Inflation 2000 - 2010

The final and equally telling comparison is that between the inflation of the cost of public services that took place under a Labour government and the economy's real inflation.

Accrued Inflation 1.0% 2.0% 3.0% 4.1% 5.2% 6.4% 7.6% 8.8% 10.0% 11.3% 12.7%


Copright May 2017.

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