The figures illustrate the correlations between taxation, consumer credit and consumer spending in the United Kingdom. The first figure portrays the changes in taxation and consumer credit, whereas the second figure shows the changes in consumer spending on food, house hold appliances and clothing. Both figures show the changes between 1990 and 2010.
The figures show, that available credit is proportional to consumer spending. This means, that when available credit rises, consumer spending also appears to rise. For instance, consumer spending peaked in 2005, and available credit also peaked around the same time, in 2006. There has also been a decrease in both consumer credit and spending in 2010.
The relationship between taxation and consumer spending is inversely proportional. When taxation falls, consumer spending appears to rise. Around 2005, when consumer spending is the highest, taxation appears to be the lowest.
Overall, the figures show how taxation is inversely proportional to both available credit, and consumer spending in the UK.