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4. Revenue income and expenditure (Charts 2a and 2b)
Rents for council houses account for over 90% of revenue income on councils' housing revenue accounts while managing and maintaining the houses accounts for about 70% of the expenditure, and loan charges (i.e. the cost of servicing housing debt) about 23%. Other sources of income for local authorities include rents on hostels and other properties such as garages or lock-ups and also interest, grants from central government, and other charges to tenants for special services. Money is also spent things such as upkeep of hostels and other properties, writing off rent arrears and paying council tax on void properties.
Income usually outstrips expenditure by around £100m (approximately 10% of income). The majority of this surplus is invested back into the housing stock as part of the Capital Programme (Capital Funded from Current Revenue). In most years balances carried forward at the end of the year broadly match balances inherited at the beginning of the year.
Income from these sources in 2009-10 is expected to be £952 million across Scotland and expenditure to be £859 million. The difference between income received during the financial year and that spent on direct costs of running the housing programme gives the HRA surplus or deficit for the year. In 2009-10 all councils except Dundee City and West Dunbartonshire expect to have a positive surplus on their account. This will be £93m across Scotland, with the highest amount expected in Fife at £20.5m and the largest deficit in Dundee at £0.5m.
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