Local government 2019-2020 provisional outturn and 2020-2021 budget estimates – revenue

Executive Summary

2019-20 Provisional Outturn

• Provisional outturn for net revenue expenditure in 2019-20 is £12,942 million – an increase of 5.2 per cent, or £643 million, on 2018-19.
• Education and Social Work are the services with highest net revenue expenditure, expecting to account for £5,771 million and £3,518 million of total net revenue expenditure in 2019-20 respectively.
• Councils expected Scottish Government grants to finance 58 per cent of net revenue expenditure in 2019-20; NDR and Council Tax to finance 41 per cent; and their reserves to finance the remaining one per cent.
• Councils expected to use £139 million of money held in reserves to pay for services in 2019-20. Overall, General Fund reserves are expected to have fallen by 8.2 per cent to £1,033 million by 31 March 2020.

2020-21 Budget Estimates

• Budgeted net revenue expenditure for 2020-21 is £13,327 million – an increase of 5.5 per cent, or £693 million, on the 2019-20 budget.
• Education and Social Work are the services budgeted to have the highest net revenue expenditure in 2020-21, accounting for £6,070 million and £3,572 million of budgeted net revenue expenditure respectively.
• Councils have budgeted that 58 per cent of 2020-21 net revenue expenditure will be financed by Scottish Government grants; NDR and Council Tax will finance 41 per cent; and their reserves will finance the other one per cent.

Councils have budgeted £95 million of their reserves to pay for services in 2020-21. Overall, General Fund reserves are budgeted to decrease by 4.8 per cent to £983 million by 31 March 2021.