Here are the main components of Government Spending. Since 2009 we have embarked on a programme of spending cuts (austerity budgets). However, the effect on our PSNCR (deficit) has been less than expected. The main reason for this has been a shortfall in anticipated tax receipts. The shift to self-employment and the increase of low paid jobs earning below the £10,600 tax threshold are two reasons why tax receipts are lower than expected.