Capital expenditure and financing: provisional outturn (2018-2019) and budget estimates (2019-2020)

Executive Summary

2018-19 Provisional Outturn

• Provisional outturn on capital expenditure is expected to total £2,884 million in 2018-19 for Scotland – a decrease of £18 million (-0.6%) on 2017-18.
• Housing Revenue Account (HRA), Education and Roads & Transport account for just over three-fifths (62%) of total capital expenditure in 2018-19.
• Local authorities will fund almost two-fifths (38%) of capital expenditure by borrowing and just over one-third (36%) using Scottish Government Grants.
• Total External Debt is expected to increase by £1,471 million (+9.3%) during 2018-19 which is 95 per cent of their Capital Financing Requirement. This means local authorities are expected to remain under-borrowed in 2018-19.

2019-20 Budget Estimates

• Local authorities have increased their budget for capital expenditure by £730 million (+21.0%) to £4,204 million in 2019-20.
• Housing Revenue Account (HRA), Education and Roads & Transport account for around three-fifths (61%) of the capital budget.
• Local authorities are planning to finance almost half (47%) of their 2019-20 capital programme by borrowing, and around three-tenths (30%) using Scottish Government Grants.
• Total External Debt is budgeted to increase by £1,449 million (+8.4%) in 2019-20 which will be 95 per cent of the Capital Financing Requirement. This means local authorities are expected to remain under-borrowed in 2019-20.