Only 3 out of 12 regions are net contributors to the UK Treasury.
The wealth of regions – measuring the UK’s tax and spending imbalance Experimental statistics from ONS have suggested that in 2016 only three UK regions generated more in taxes than they receive in public spending. The data have caused a stir in the media with headlines proclaiming that London and its surrounding regions are effectively ‘subsidising’ the rest. Jonathan Athow explains how the figures were calculated and how ONS is looking to develop and improve them. On 23 May, ONS published some new statistics breaking down the public finances statistics for the different countries and regions of the UK. This allocated public sector revenue and expenditure to each country and region, allowing us to see how spending levels and tax receipts vary across the UK. This analysis included an estimate of the ‘net fiscal balance’ for each country and region. That provided an estimate for which parts of the UK contribute more to public sector revenues (mostly taxes) than they receive in public spending or vice versa. The issues of taxation and expenditure are important in the context of ongoing discussions about devolution and relative economic performance.