A fiscal base so heavily skewed to taxation on such basic items of mass consumption proved unwieldy in wartime; British war finance therefore had once more to borrow heavily in international markets, with repayment requiring a restructuring toward direct taxation together with a significant increase in the overall tax burden. The fiscal profile of government once again doubled from 1914 to 1920 because of the costs of war. Defense had taken 44 percent of total expenditure in 1913–1914, debt services 14 percent, and social services (education, health, labor, insurance, and pensions) 19 percent. By 1925–1926 these figures had altered to defense 16 percent, debt servicing 46 percent, and social services 24 percent.

Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, loc. 389