The distribution of public service spending

Abstract

Abstract In 2019–20, a total of £509 billion [22.5% of gross domestic product (GDP)] was spent on providing public services and infrastructure in the UK. Unlike spending on cash benefits, the primary aim of this spending is not redistribution. But spending on this scale does have big distributional effects—even before considering impacts of services on other dimensions of inequality, such as educational, health and labour market outcomes. There has been a long tradition of analysis of how public service spending is distributed across the population in the UK. This commentary has three main aims: first, to explain the key conceptual and methodological issues involved in such analysis, second, to set out what we know about the distribution of spending on major public services and how and why this changed over time, and third, to identify key lessons for policy and avenues for future research.