Estimated FY 2026 Revenue
for Governments in the United Kingdom
In fiscal year ending March 2026 the governments in the United Kingdom are expected to collect about
40
percent of
Gross Domestic Product.
Public Revenue: Central and Local
Governments in the UK will collect
£1,207.0 billion in 2026.
Table 3.01: Total Revenue in
2026
In fiscal 2026 the Office of Budget Responsibilty estimates that central government revenue will be
£1,136.9 billion and that local authority revenue for 2026 will be
£70.1 billion.
Total public revenue in the United Kingdom is estimated to be
£1,207.0 billion in 2026.
UK Public Revenue: the Big Picture
The biggest tax bite is from indirect taxes like VAT and excise taxes.
Table 3.02: Total Revenue Breakdown
In 2026 it is expected that income tax will collect
£462.8 billion, National Insurance collections will
amount to £206.8 billion, indirect taxes will amount to £428.5 billion, and Business revenue will
be £105.4 billion.
Government Revenue: the Details
Almost all public revenue is collected by the central government.
Table 3.03: Total Revenue Details
The three big sources of revenue for the UK central government in 2026 will be income tax at
£462.8 billion,
national insurance at
£206.8 billion and indirect taxes at £379.8 billion, for a total of
£1,207.0 billion.
We estimate local authorities will collect about
£48.7 billion in council tax in FY 2026 and
£20.6 billion in other revenue, for a total of
£70.1 billion.
Pie Chart of Total UK Public Revenue
Indirect taxes are the biggest bite of UK taxes, at 37 percent of total revenue.
Chart 3.04:
Total Revenue Details
Total UK public revenue will amount to
£1,207.0 billion in 2026.
Of this
38 percent will be in income taxes, 17 percent in national insurance contributions, 36 percent in indirect taxes, and 9 percent in business and
other revenue.
Pie Chart of UK Local Authority Revenue
Indirect taxes are the biggest bite of local taxes, at 68 percent of total revenue.
Chart 3.06:
Total Revenue Details
Total local authority public revenue will amount to
£70.1 billion in 2026.
Of this
69 percent is in indirect taxes, and 29 percent is in business and
other revenue.
