Rebalancing the public finances

The deficit – the difference between what the government spends and raises from tax and other revenues – has come down significantly since it peaked at 10% of national income in 2009/10.

In 2016/17 the deficit was 2.4% of national income, similar to the level it was prior to the 2007-2008 financial crisis. 

The deficit is still higher than the historical average, and is forecast to increase in 2017/18 to 2.9% of national income.