Fuel and travel costs are pushing prices up again
Thursday 5 November 2026
Inflation has risen to 3.1%, meaning everyday spending is getting more expensive just as household budgets are already under pressure.
Public sector current receipts in 2024-25, from income tax and VAT to council tax, business rates and public sector interest.
The same receipts, laid out two ways and grouped two ways. Nothing is added or removed when you switch.
National Insurance, VAT, corporation tax and other taxes all contribute to funding public services.
Looking at them together reveals how the cost of government is shared across different activities.
Some taxes are deducted directly from earnings. Others are included in the prices we pay when shopping, buying fuel or purchasing a home.
Businesses also pay taxes, although some of their economic cost may ultimately fall on workers, customers or shareholders.
Income tax generally takes a larger proportion of earnings from higher earners, while consumption taxes such as VAT can take a larger share of the income of lower-income households.
Understanding these differences matters when considering whether the overall tax system is fair.
The balance between taxing earnings, spending, profits and wealth affects incentives and the distribution of the tax burden.
Different choices can raise similar amounts of revenue while affecting households and businesses differently.
Decisions about taxation affect much more than government revenue.
They influence how much money households have left to spend, how businesses operate and how the costs of public services are shared.
Understanding where public money comes from helps us judge whether those choices are working for everyone.
Keep in the loop
Highlights from about the UK economy, the UK government and the UK public sector.
Thursday 5 November 2026
Inflation has risen to 3.1%, meaning everyday spending is getting more expensive just as household budgets are already under pressure.
Wednesday 4 November 2026
Interest rates are staying at 3.75%, so households with mortgages and other borrowing may have to wait longer for costs to come down.
Wednesday 4 November 2026
A higher energy price cap means many households will be paying more to heat and power their homes during the colder months.
Guides and insights
Clear, accessible analysis of the economic issues shaping everyday life
Living standards
Comparing the cost of everyday life across generations, from bread and beer to buying a home.
Food & prices
How farming, energy, transport and supermarket competition shape the price on the shelf.
Prices & inflation
What slower price rises mean for wages, purchasing power and economic recovery.
Shared prosperity
Beyond GDP: how we could measure economic success through security, opportunity and living standards.
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