This paper is the UK contribution to the consumption project. In it, we examine changes in the allocation of household expenditure across different goods and services over the past two decades using the UK Family Expenditure Survey (FES). Over time, households have increased the share of their budget they allocate to services. There are (at least) three reasons why we might expect to see a change in household expenditure patterns over time. Firstly, there have been changes in the demographic structure of the population; secondly, real household budgets have increased over time; finally, the relative prices of different goods and services have changed over time.
