These two pie charts illustrate the distribution of tax revenue from the different sources in the UK and how the government spent on this income during last year. Broadly, it can be seen that the main source of government earnings derived from income tax, which was mostly contributed for pensions.
Income tax was the largest source of UK tax revenue, accounting for almost one-third of total proportion (28%). National insurance was ranked second at 21%, which was more than value added tax or VAT only 4%. Tax revenue from council tax, business rates, fuel duty, corporation tax, and other sources were ranked in the range between 5% to 11%.
The UK government spent one in five proportion of total income on allowances for retired workers. Health care and welfare expenditures accounted for 18% and 17%, respectively, while this country spent 14% of its budget on education for the last year. The remaining revenue was contributed to other sectors such as defense, general government, transportation, protection, interest payments on debt and others, comprising between 3% to 7% of national total spendings.