BUDGET ANSWERS
What would it cost?
Plain answers to common budget questions, worked out by the same model that runs the game. Each one follows the change for five years and ten, and asks whether voters would thank you for it.
- How much does the UK spend on debt interest?
About £109.4bn in the first year of the game, around 8p in every pound the government spends. With no changes, it is £137.1bn a year by the election.
- What would a 1p cut in income tax cost?
About £8.0bn a year in lost tax, before anyone changes their behaviour. After five years, the government is borrowing £11.5bn a year more than if nothing had changed, because the economy and debt interest respond too.
- How much would 1p on income tax raise?
About £7.9bn a year in extra tax, before anyone changes their behaviour. After five years, the government is borrowing £11.0bn a year less than if nothing had changed, because the economy and debt interest respond too.
- How much would a 1p rise in the higher rates of income tax raise?
About £2.3bn a year in extra tax, before anyone changes their behaviour. After five years, the government is borrowing £3.0bn a year less than if nothing had changed, because the economy and debt interest respond too.
- What would a 1p cut in National Insurance cost?
About £5.1bn a year in lost tax, before anyone changes their behaviour. After five years, the government is borrowing £7.2bn a year more than if nothing had changed, because the economy and debt interest respond too.
- How much would a 1-point VAT rise raise?
About £8.7bn a year in extra tax, before anyone changes their behaviour. After five years, the government is borrowing £7.7bn a year less than if nothing had changed, because the economy and debt interest respond too.
- What would cutting corporation tax to 20% cost?
About £18.8bn a year in lost tax, before anyone changes their behaviour. After five years, the government is borrowing £24.0bn a year more than if nothing had changed, because the economy and debt interest respond too.
- What would 10% more NHS funding cost?
About £24.4bn a year in extra spending, before anyone changes their behaviour. After five years, the government is borrowing £37.6bn a year more than if nothing had changed, because the economy and debt interest respond too.
- What would 10% more defence spending cost?
About £6.6bn a year in extra spending, before anyone changes their behaviour. After five years, the government is borrowing £10.5bn a year more than if nothing had changed, because the economy and debt interest respond too.
- What would 10% more education funding cost?
About £12.7bn a year in extra spending, before anyone changes their behaviour. After five years, the government is borrowing £18.2bn a year more than if nothing had changed, because the economy and debt interest respond too.
- How much would a 10% cut in working-age benefits save?
About £15.9bn a year saved, before anyone changes their behaviour. After five years, the government is borrowing £23.3bn a year less than if nothing had changed, because the economy and debt interest respond too.
All figures are illustrative outputs of a simplified model, not official costings. Read the model register.