This item was published during the term of a previous administration that ended in April 2007
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Local government financial statistics 2004-05
19/01/2006
Scottish Local Government Financial Statistics for 2004-05 were published today.
The key points are:
- A 3.8 per cent increase in Gross Revenue Expenditure in 2004-05, to £15.5 billion
- A 7.7 per cent increase in Total Revenue Income in 2004-05, to £16.7 billion
- A 5.9 per cent increase in Net Revenue Expenditure on General Fund services in 2004-05, to a total of £9.8 billion
Local Authority Gross Revenue Expenditure in 2004-05 was £15.5 billion, an increase of 3.8 per cent on 2003-04. Within this total, General Fund services expenditure accounted for 75.8 per cent (£11.7 billion) and housing expenditure for 17.2 per cent (£2.7 billion). The remaining expenditure was in trading services (£0.1 billion) and special funds (£1.0 billion).
Taking Gross Revenue Expenditure by expenditure category: operating expenses accounted for 51.9 per cent (£8.0 billion), employee costs 39.1 per cent (£6.1 billion) and loan charges 6.4 per cent (£1.0 billion).
Net Revenue Expenditure on General Fund services was £9.8 billion, an increase of 5.9 per cent on 2003-04. Of this, education accounted for 39.5 per cent (£3.9 billion), social work for 19.1 per cent (£1.9 billion) and police, fire and emergency planning for 12.2 per cent (£1.2 billion). These figures represent increases in expenditure of 7.1 per cent, 8.4 per cent and 3.7 per cent respectively on 2003-04.
Total revenue income for all local authority accounts in 2004-05 was £16.7 billion, an increase of 7.7 per cent on 2003-04. This revenue income was sourced from government grants of £8.4 billion; sales, fees and charges (mainly council house rents) of £1.9 billion; non-domestic rates of £1.9 billion and council tax of £1.6 billion. Other income, including the use of balances, contributed £2.9 billion.
Gross Capital Expenditure (excluding capital funded from current revenue) in 2004-05 was £1.3 billion. Local authority usable capital income in 2004-05 was £0.5 billion.
Debt on all services at March 31, 2005 was £9.0 billion or £1,769 per head of population. This represents a decrease of £18.3 million from the position at March 31, 2004.
Gross Expenditure is expenditure incurred without taking account of any associated income (although inter-account and inter-authority transfers are deducted to avoid double-counting).
Net Revenue Expenditure is revenue expenditure financed by government grants (including Revenue Support Grant), local taxes and the use of balances.
Capital Expenditure relates to the provision and improvement of tangible fixed assets (such as schools, new houses and machinery) which continue to be of value long after their acquisition. Capital Income is made up mostly from the sale of these assets.
The General Fund is the account where most transactions of a local authority take place; it is, therefore, by far the largest account.
The Housing Revenue Account (HRA) records expenditure and income associated with dwellings provided under the Housing (Scotland) Act 1987. Housing is the only service where a separate 'ring-fenced' account is required by law. Expenditure and income on other housing services, such as the provision of renovation grants to private homeowners, is charged to the general fund.
Trading Services are local authority services which are, or are intended to be, self-financing through fees and charges levied on the users of the service. Because of the differences between the funding for trading services and other activities their accounts are maintained separately.
Superannuation, Special and Common Goods Funds are maintained outside of the general fund.