Fiscal Balance in United Kingdom
The United Kingdom's fiscal deficit over the last decade was marked by austerity, Brexit, and the pandemic. Efforts to reduce the deficit through spending cuts and tax increases were evident until 2016. Brexit-related fallout slowed deficit reduction progress. The COVID-19 pandemic necessitated significant fiscal spending, resulting in a substantial deficit. By 2022, the focus shifted to balancing fiscal consolidation with supporting post-pandemic recovery. However, the government continues to run a large budget deficit, reflective of anaemic economic growth, a reluctancy to raise key taxes, and spending pressures from health and pensions.
The fiscal balance of the United Kingdom averaged -5.2% of GDP in the decade to 2022, slightly below the major economies' average of -4.5%. The UK's fiscal balance in 2022 was -4.7% of GDP. For more fiscal balance information, visit our dedicated page.
United Kingdom Fiscal Balance Chart
Note: This chart displays Fiscal Balance (% of GDP) for United Kingdom from 2014 to 2024.
Source: Macrobond.
United Kingdom Fiscal Balance Data
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Fiscal Balance (% of GDP) | -13.2 | -7.7 | -4.7 | -6.1 | -5.8 |
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects British fiscal balance projections for the next ten years from a panel of 14 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable fiscal balance forecast available for British fiscal balance.
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