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The Distributional Impact of Public Spending in the UKO' Dea and Preston, 2010 Public spending in the UK in 2008/9 amounted to over £10,000 per person or about 43% of national income (Crawford, Emmerson and Tetlow 2009) while net receipts from tax and social security contributions exceeded £8,000 per person or about 35% of national income. These transfers of resources between individuals and the state, either as cash payments or as supply of goods, affect individual standards of living and do so in ways that differ markedly between different households. Assessing the impact of government activity on the distribution of household living standards is essential to the evaluation of public service provision but raises challenging conceptual issues that we discuss in this report.The diversity of ways in which governments spend raises complex issues for assessment. In particular the distinction between straight cash transfers and provision of benefits in kind, and, within the provision of benefits in kind between provision of private and of public goods, may call for a variety of approaches in evaluation of the associated benefits. While cash transfers are often regarded (though even here there are issues) as straightforwardly allocable to well-identified recipients, some goods such as health or education services can be associated with specific recipients but at a valuation which ...
