Local Government 2021-22 Provisional Outturn and 2022-23 Budget Estimates

Executive Summary

Revenue Expenditure

• Net revenue expenditure on local authority services was provisionally reported as £12,715 million in 2021-22 and budgeted as £12,954 million for 2022-23.
• Education and Social Work continue to be the services with highest net revenue expenditure in both 2021-22 and 2022-23.
• Local authorities reported provisional general funding of £13,726 million in 2021-22, and budgeted for £13,809 million of general funding in 2022-23.
• General Fund reserves at 31 March 2022 were provisionally reported as £2,681 million, and budgeted to be £2,382 million at 31 March 2023.

Capital Expenditure

• Capital expenditure across local authorities was provisionally reported as £3,483 million in 2021-22, and budgeted as £4,691 million in 2022-23.
• The main sources of capital financing are grants & contributions; and borrowing. Borrowing is expected to increase significantly to £1,683 million in 2021-22, and then to £2,785 million in 2022-23.
• Total external debt was provisionally reported as £18,993 million in 2021-22, and budgeted as £20,981 million in 2022-23, with local authorities continuing to remain under-borrowed.

COVID-19

• Figures for 2021-22 reflect the provisional impact of COVID-19 on local authorities' revenue and capital expenditure. Figures for 2022-23 reflect local authorities' budgeting assumptions for any continued impacts of COVID-19.