Yesterday I asked in Treasury Questions what the extra £64.6 billion current spending this year is being spent on, compared to 2009-10. The Chancellor did not have time to itemise the main increases, so I thought it would be of interest to set out what they are spending the extra on. I appreciate these are all cash sums, so where pay and prices have risen some of the money is needed to pay for such increases.
The biggest increases are on benefits. This year benefits are scheduled to cost £7.1 billion more than last year, and £19 billion more than 2009-10. Gross Interest charges are forecast to fall by £2.6 billion this year compared to last, but are up by £13.9 billion compared to 2009-10. Tax credits rise by £500 million next year, and are up by £3.1 billion since 2009-10. Net Public service pension payments will cost an extra £3.2 billion this year compared with last, and are up by £6.9 billion compared to 2009-10. Local Council current spending will rise by £600 million this year against last, and by £1.7 billion compared to 2009-10. Overseas Aid, Health and educational spending also rises, within the Departmental spending totals. Payments to the EU are said to fall by £400 million this year, but are up by £900 million compared to 2009-10.
2011-12 total borrowing came in on the target £126 billion extra in the figures announced yesterday. There were some signs of year end additional spending, as is the usual public sector pattern.