Local government expenditure and income in 2023-24

The Chief Statistician has released figures on local government finance in 2023-24. These figures provide a comprehensive overview of the financial activity of local government, including revenue expenditure and income; capital expenditure and financing; reserves; debt; and pensions.

Revenue expenditure is the cost of delivering services each year. Local authorities’ net revenue expenditure in 2023-24 was £14,296 million. Education and Social Work were the services with highest net revenue expenditure, accounting for £6,960 million and £4,604 million respectively.

Net revenue expenditure on Central Services increased by 103.2 per cent, or £352 million, between 2022-23 and 2023-24. Of this increase, £260 million was due to Equal Pay payments that were made by Glasgow City Council during 2023-24.

Capital expenditure is expenditure that creates the buildings and infrastructure necessary to provide services, such as schools and roads. Local authorities incurred £3,689 million of capital expenditure in 2023-24. This was predominantly financed by grants and contributions of £1,704 million and borrowing of £1,640 million.

Usable reserves are local authorities’ surplus income from previous years which can be used to finance future revenue or capital expenditure. At 31 March 2024, local authorities held £4,258 million of usable reserves.

When local authorities borrow money or use credit arrangements to finance capital expenditure, a debt is created which has to be repaid from future revenues. In 2023-24, as a result of the statutory flexibility granted by Ministers, local authorities made debt repayments of minus £67 million. That is, rather than repay debt, they received a windfall of £67 million as a result of the service concession flexibilities.

Background

Scottish Local Government Finance Statistics (SLGFS) 2023-24 is based on final, audited figures provided by local authorities (where available, or draft accounts if these have not yet been audited).

Further information on Local Government Finance statistics publications and data collections can be found on the Scottish Government website.

These statistics have been produced in accordance with the Code of Practice for Statistics.