Where does the NHS budget come from?

Watch
olizzzz
Badges: 0
Rep:
?
#1
Report Thread starter 6 years ago
#1
Hi
So the NHS budget is £109bn this year.

And presumably all of this comes from taxation?

So the average mean salary in the UK is £29,000
So the mean contribution per tax paying person is £1235
There are 30m tax payers in the UK
- these are all from online calculators/etc

so 30m people paying £1235 each = £37bn for the NHS

So where does the rest of the £109bn come from?
0
reply
olizzzz
Badges: 0
Rep:
?
#2
Report Thread starter 6 years ago
#2
Hi
So the NHS budget is £109bn this year.


And presumably all of this comes from taxation?


So the average mean salary in the UK is £29,000
So the mean contribution per tax paying person is £1235
There are 30m tax payers in the UK
- these are all from online calculators/etc


so 30m people paying £1235 each = £37bn for the NHS


So where does the rest of the £109bn come from?
0
reply
FDR
Badges: 10
Rep:
?
#3
Report 6 years ago
#3
(Original post by olizzzz)
Hi
So the NHS budget is £109bn this year.


And presumably all of this comes from taxation?


So the average mean salary in the UK is £29,000
So the mean contribution per tax paying person is £1235
There are 30m tax payers in the UK
- these are all from online calculators/etc


so 30m people paying £1235 each = £37bn for the NHS


So where does the rest of the £109bn come from?
Last year (2013), government revenues in total amounted to £612 bn - this came from, things like income tax (£155 bn), VAT (£103 bn), National Insurance (£107bn), etc - the entire breakdown of revenues and expenditures is available here

The shortfall between government revenues and expenditures will be funded by debt, the vast majority of which will be bought up by pension funds, both national and international, and also insurance companies and banks.
0
reply
olizzzz
Badges: 0
Rep:
?
#4
Report Thread starter 6 years ago
#4
(Original post by FDR)
Last year (2013), government revenues in total amounted to £612 bn - this came from, things like income tax (£155 bn), VAT (£103 bn), National Insurance (£107bn), etc - the entire breakdown of revenues and expenditures is available here

The shortfall between government revenues and expenditures will be funded by debt, the vast majority of which will be bought up by pension funds, both national and international, and also insurance companies and banks.
Thanks! I don't really understand your answer though - do pension funds mean normal people pay towards the £70bn deficit?
0
reply
Heliosphan
Badges: 1
Rep:
?
#5
Report 6 years ago
#5
(Original post by olizzzz)
Hi
So the NHS budget is £109bn this year.

And presumably all of this comes from taxation?

So the average mean salary in the UK is £29,000
So the mean contribution per tax paying person is £1235
There are 30m tax payers in the UK
- these are all from online calculators/etc

so 30m people paying £1235 each = £37bn for the NHS

So where does the rest of the £109bn come from?
Simply that there are other ways of raising tax revenue. You pay tax everytime you buy something or fill your car up for instance.
0
reply
Hype en Ecosse
  • Study Helper
Badges: 20
Rep:
?
#6
Report 6 years ago
#6
The NHS also receives some revenue from things like prescription and dental charges, on top of the funding received from taxation.
0
reply
olizzzz
Badges: 0
Rep:
?
#7
Report Thread starter 6 years ago
#7
(Original post by Heliosphan)
Simply that there are other ways of raising tax revenue. You pay tax everytime you buy something or fill your car up for instance.
So in fact we pay £109bn divided by 30mil people = £3500 each or so per year?
0
reply
username457532
Badges: 15
Rep:
?
#8
Report 6 years ago
#8
(Original post by olizzzz)
So in fact we pay £109bn divided by 30mil people = £3500 each or so per year?
The few very rich will pay a significant amount more than the many very poor.
0
reply
DaveSmith99
Badges: 12
Rep:
?
#9
Report 6 years ago
#9
Image
0
reply
olizzzz
Badges: 0
Rep:
?
#10
Report Thread starter 6 years ago
#10
(Original post by SmallTownGirl)
The few very rich will pay a significant amount more than the many very poor.
Even though the mean salary is £30k? Not the median salary.
0
reply
Architecture-er
Badges: 19
Rep:
?
#11
Report 6 years ago
#11
You also have state-owned companies, export and importation taxes, finance from investment, yada yada.

As banks show, it's possible to make money using money, our government isn't just a massive collection and distribution agency for the population's taxes
0
reply
kaneboy
Badges: 9
Rep:
?
#12
Report 6 years ago
#12
Money printed that doesn't actually exist.

And debt.
0
reply
tengentoppa
Badges: 18
Rep:
?
#13
Report 6 years ago
#13
Not all tax is income.
0
reply
FDR
Badges: 10
Rep:
?
#14
Report 6 years ago
#14
(Original post by olizzzz)
Thanks! I don't really understand your answer though - do pension funds mean normal people pay towards the £70bn deficit?
Kind of -

People will contribute to their pension scheme by saving some money every year, which goes towards their pension.

This money will usually be put into a pension fund rather than simply put in a personal bank account etc. The pension fund will want to get a better return on this money for its contributors (i.e the people who are saving their money), so it will lend the government money for a certain amount of time (usually 10 years), and in return it'll get an annual interest rate (currently about 2.5%).

So for example, in one year if the government wants to borrow £100bn, to be paid back in 10 years, British pension funds may lend the government £20 bn, German funds may lends £5 bn, Chinese funds may lend £2bn etc and in return for lending money now, they'll get paid interest until they get their money back in 10 years. B
0
reply
lerjj
Badges: 12
Rep:
?
#15
Report 6 years ago
#15
(Original post by olizzzz)
Hi
So the NHS budget is £109bn this year.

And presumably all of this comes from taxation?

So the average mean salary in the UK is £29,000
So the mean contribution per tax paying person is £1235
There are 30m tax payers in the UK
- these are all from online calculators/etc

so 30m people paying £1235 each = £37bn for the NHS

So where does the rest of the £109bn come from?
Forms of taxation:
VAT
Income tax
National Insurace
Council tax
Some other rates as well I think

Where did you get this £1235 figure from? The first three will make up the majority of NHS funding (and other state expenditures).
0
reply
username457532
Badges: 15
Rep:
?
#16
Report 6 years ago
#16
(Original post by olizzzz)
Even though the mean salary is £30k? Not the median salary.
But because the percentage of tax paid changes with income you need to work out mean tax by calculating total tax paid/total tax payers rather than working out the tax the mean worker is paying...
1
reply
kaneboy
Badges: 9
Rep:
?
#17
Report 6 years ago
#17
(Original post by AlphaNick)
doesnt happen because hyperinflation
Well eh...inflation itself is done by the government. Inflation happens because more money is printed.
0
reply
The_Duck
Badges: 7
Rep:
?
#18
Report 6 years ago
#18
Mostly government bonds.
0
reply
olizzzz
Badges: 0
Rep:
?
#19
Report Thread starter 6 years ago
#19
(Original post by lerjj)
Forms of taxation:
VAT
Income tax
National Insurace
Council tax
Some other rates as well I think

Where did you get this £1235 figure from? The first three will make up the majority of NHS funding (and other state expenditures).
from the £30,000 input from here - http://www.telegraph.co.uk/news/poli...efit-bill.html

£30k being the mean salary in the UK
0
reply
Quady
Badges: 20
Rep:
?
#20
Report 6 years ago
#20
(Original post by kaneboy)
Money printed that doesn't actually exist.

And debt.
Tell me more about the money printed that doesnt actually exist....

How does that fund the NHS?
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

Should there be a new university admissions system that ditches predicted grades?

No, I think predicted grades should still be used to make offers (525)
33.78%
Yes, I like the idea of applying to uni after I received my grades (PQA) (642)
41.31%
Yes, I like the idea of receiving offers only after I receive my grades (PQO) (315)
20.27%
I think there is a better option than the ones suggested (let us know in the thread!) (72)
4.63%

Watched Threads

View All