Politics Glossary
Definitions of economic and political terms used in UK Facts's politics coverage.
This glossary defines terms used across UK Facts's Burnham, Party pages, Manifesto Tracker, Political Map, and Elections & Key Dates pages.
Deficit
The annual shortfall between government spending and tax revenue. The UK deficit was 4.4% of GDP in 2024. Not the same as debt (the accumulated total).
Example: A budget deficit of £50bn means the government spent £50bn more than it received in taxes that year.
Debt
The accumulated total of all past government borrowing. UK public sector net debt is close to 95% of GDP. This accumulates when deficits occur.
Example: If you run a deficit of £50bn one year, your debt increases by £50bn (before interest). After 100 years of deficits, total debt is very large.
GDP (Gross Domestic Product)
The total economic output of a country in a year. Used as a benchmark for comparing debt, spending, and deficits across countries and time periods.
Example: The UK's GDP is ~£2.9 trillion. National debt of ~£2.7 trillion is close to 95% of GDP.
Real vs Nominal
Real figures are adjusted for inflation; nominal figures are not. Real figures show true purchasing power. Most policy decisions use real figures.
Example: Your wages might be £38,900 (nominal), but if inflation is 5%, your real wage growth might be 2% (you can buy 2% more with your wages than last year).
Fiscal Envelope
The total amount the government has set aside for spending in a particular area or over a particular period. A "tight fiscal envelope" means limited budget.
Example: "The NHS has a £200bn fiscal envelope" means the government has allocated £200bn for NHS spending.
Voting Intention
A polling measure of how people say they would vote if an election were held today. Different from actual election results. Subject to significant polling error.
Example: A poll showing "Labour 40%, Conservatives 28%" is voting intention. Actual results might differ by 2-5 percentage points.
Manifesto
A political party's written statement of policies and commitments they promise to deliver if elected. Parties are held accountable to their manifesto commitments.
Example: A manifesto might promise "£5bn extra for the NHS" or "reduce inflation by X date".
ONS (Office for National Statistics)
The UK's independent statistical authority. Produces official economic data on GDP, employment, inflation, and other key indicators.
Example: The ONS publishes monthly inflation figures, quarterly GDP growth, and monthly unemployment statistics.
OBR (Office for Budget Responsibility)
Independent forecaster of UK public finances and the economy. Provides official forecasts used by government in Budget and Spending Reviews.
Example: The OBR forecasts whether debt will rise or fall under proposed policies, and how the economy will grow.
Labour Force Survey
The main survey used to measure UK unemployment, employment, and wage levels. Conducted by the ONS and released monthly.
Example: The Labour Force Survey showed unemployment at 4.4% in May 2026.
Real Wages
Wages adjusted for inflation. Shows whether workers' actual purchasing power is rising or falling.
Example: Nominal wages rose 3%, but inflation was 5%, so real wages fell 2% (workers can buy less).
Trade-off
A situation where achieving one goal requires sacrificing another. Policy trade-offs involve choosing between competing priorities.
Example: Lower taxes (one goal) require either lower spending (sacrificing public services) or higher debt (sacrificing future fiscal room).
Gilts
UK government bonds — IOUs the government sells to investors to fund borrowing. The interest rate ("yield") investors demand reflects how much they trust the government to manage its finances.
Example: A rise in gilt yields after a fiscal announcement means investors now demand more interest to lend to the government, making borrowing more expensive.
Fiscal Rules
Self-imposed targets a government sets for its own borrowing and debt, usually to reassure markets and voters that spending is sustainable. Not written into law in the way taxes are.
Example: A fiscal rule might require debt to be falling as a share of GDP by a set year; missing it can spook the gilt market even without a change in actual policy.
Spending Review
A multi-year process, usually run by the Treasury, that sets budgets for government departments for several years ahead, rather than one year at a time.
Example: A three-year Spending Review might fix the NHS and schools budgets for the next three financial years.
By-election
An election held in a single constituency between general elections, usually because the sitting MP has died, resigned, or been elevated to the House of Lords.
Example: A by-election lets a party leader who isn't yet an MP win a seat and enter Parliament without waiting for the next general election.
Minority Government
A government formed by a party that does not hold a majority of seats in the House of Commons, so it must win support from other parties vote by vote to pass laws.
Example: A minority government can lose key votes unexpectedly, making its policy agenda harder to predict than a government with a majority.
Proportional Representation
An electoral system where the number of seats a party wins closely reflects its overall vote share, unlike the UK's current first-past-the-post system for general elections.
Example: Under proportional representation, a party winning 15% of the vote nationally would expect roughly 15% of seats, rather than potentially far fewer.
About these definitions
These definitions are written in plain English for readers aged 12–14+. We've tested them for clarity and verified them against ONS, OBR, and academic sources.
If you find a term confusing or spot an error, please email us. The GitHub link that used to sit here pointed at a private repository and returned a 404 for every reader who clicked it. Our corrections policy explains what happens next.