Is the money which is paid to the government in tax. The total is important because it influences both the amount which the government may spend and the amount which has to be borrowed ( public sector net borrowing ).
The expected revenue from taxation is determined by the policies laid out in the Budget , usually in March. For 2009-10, income tax, VAT, National Insurance and corporation tax revenues were all forecast to fall because of the recession. (The figures are shown on the pie chart. The figure for borrowing shows the extra amount needed to cover total expenditure.)
Expected tax revenue, 2009-10, £ billion. (Source: UK Treasury.)