Chart 2.4 shows the recent trend for one measure of spending on human capital, bringing together total general Government spending on education, employment training and civil science and technology. The Government is encouraging business and individuals to invest more in these areas. Resource accounting will be introduced in all Government Departments by 1 April 1998. This will allow better informed decisions. 2.16 The Unified Budget has encouraged the development of coordinated measures in tax and spending to help the supply side.
Tax policy has a number of objectives.
Despite recent increases, the overall tax burden remains low. See Chart 2.5 2.18 In reducing public borrowing, the Government looked first to public spending. Although taxation also had to be increased, the overall burden of tax in the UK remains significantly lower than the average for other EU countries. Preliminary estimates indicate that UK general government current receipts amounted to 36.5 per cent of GDP in 1994, compared with an EU average of 47 per cent. 2.20 Rates of tax are also very low by international standards.