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BACKGROUND NOTES
1. The expenditure figures set out in this publication are defined as follows:
- Tables 1.1, 1.2, 2.1-4.3 are total local authority gross expenditure, irrespective of whether the income is from central government grants, specific grants, sales, fees and charges (e.g. school meals) and lottery grants. It excludes loan charges payments. Section 5 gives net figures rather than gross.
- The totals include "revenue contributions to capital" ( RCC) and "support services". These are single items for the whole education budget which are apportioned by local authorities to each of the sub-services (primary, secondary, etc.). RCCs are revenue funding used to contribute to capital expenditure and support services are the costs of administration support to the education department from the council's central administration e.g. by providing office space or payroll administration.
- These figures are also being published in a slightly different form by the Chartered Institute of Public Finance and Accounting ( CIPFA) Scotland in the Rating Review Actuals 2004-05.
- In Tables 2.1 to 4.3 there is an adjustment made to account for inter-authority and intra-authority transfers i.e. the total spend in Scotland is slightly less than the sum of the 32 councils' gross spend as some give money to other councils for the provision of services and both show it as an expenditure item. Similarly individual education services recharge some costs to other accounts of the local authority. This avoids double counting but has not been apportioned to each of the spend categories, as it is supplied as a single figure.
- Increases have been shown on a nominal basis, not taking into account inflation.
Central administration
2. When recording service expenditure, local authorities follow guidelines set out by CIPFA. From 1 April 2002, the Best Value Accounting Code of Practice ( BVACoP) was implemented across Scotland for Education expenditure analysis. Under this new guidance central administration costs, which were previously reported as a separate item, are now reported under the various sectors and services which rely on them. This means that figures for 2002-03 to 2004-05 are not comparable with previous years.
PPP projects
3. PPP projects are initially funded by the private sector, with local authorities financing them over future years. The initial cost of building projects funded in this way will therefore not appear in the capital expenditure figures in this publication, but will lead to an increase in the revenue spend in future years.
Devolved to schools
4. As a result of the implementation of the new code of practice for 2002-03 (see Note 2) outturn expenditure from 2002-03 onwards is classified as either (a) devolved to head teachers (Individual School Budgets), or (b) centrally held and managed by local authorities. Data are published in table 5.2.
5. The Executive will shortly be issuing revised guidance stating, for the purposes of the Partnership Agreement, which categories of expenditure can reasonably be devolved to head teachers. Table 5.1 however contains all categories of expenditure, and therefore percentage obtained by simply dividing Table 5.2 by Table 5.1 would underestimate the measure relevant to the Partnership Agreement target. Non-audited estimates on the basis set out in the draft guidelines are currently provided to the Executive by local authorities.
Executive spending on education
6. The Executive does not set the amount to be spent on school education, but funds local authorities who set their own budgets for different services. Local authority expenditure is funded mainly from the Executive's Revenue Support Grant ( RSG), but also from business rates and their own council tax receipts. The Executive calculates GAE (generally speaking, a formula-based allocation of funding proportional to need), and this is met from RSG, council tax and redistributed business rates. However GAE, while having an education element in its calculation, is not ring-fenced. Local authorities can decide themselves how much they wish to spend on education relative to other services, and also have the option of raising more council tax than that assumed in the calculation of RSG. The Executive also funds other aspects of education through direct grants, much of which is also included in these figures as it is spent by local authorities, however this accounts for only a small proportion of local authority expenditure.
Budgeted School Running Costs
7. In previous years the Executive has also published figures for budgeted school running costs. These data are a different set of figures, described in School Boards (Financial Information) (Scotland) Regulations 1990. However, due to increasing difficulties with these data because of changes in financial practices, these data were removed from the scope of National Statistics, and are no longer published here.
Per pupil calculations
8. Expenditure per pupil in the primary and secondary sectors was calculated using the relevant school rolls for primary and secondary pupils. However the reported expenditure may exclude some elements of spend on pupils with additional support needs, as this is recorded under special education.
9. It is not possible to calculate expenditure per pupil in special education. Expenditure in this category includes support for pupils in mainstream schools as well as special schools, and in some cases covers funding for pupils in neighbouring authorities' special schools. It is therefore not possible to identify the correct number of pupils to which the expenditure relates.
General
10. Figures are rounded separately and may consequently not sum to the total figure.
11. This is a National Statistics publication. National Statistics are produced to high professional standards set out in the National Statistics Code of Practice. They undergo regular quality assurance reviews to ensure that they meet customer needs. They are produced free from any political interference.
12. Statistical tables are available through the following link http://www.scotland.gov.uk/stats/bulletins/00470
Figures for expenditure on other services are available through the following link www.scotland.gov.uk/stats/bulletins/00472
Enquiries13. The report was edited by Mal Cooke, Matt Flanagan, Louise Flanagan, Colin Gallacher.
14. Public enquiries (non-media) about the information contained in this News Release should be addressed to Mal Cooke, Statistician, Scottish Executive Education Department, Room 1-B, Victoria Quay, Edinburgh EH6 6QQ. Telephone 0131 244 1689 or e-mail school.stats@scotland.gsi.gov.uk.
15. Media enquiries about the information in this News Release should be addressed to:
Marion Mackay: 0131 244 3070
Statistical Publication Notice
19 January 2006
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