Local government revenue expenditure and financing 2018-2019: provisional outturn and budget estimates

Executive Summary

2018-19 Provisional Outturn

• Local authority net revenue expenditure is expected to total £12.3 billion in 2018-19 for Scotland – an increase of £0.292 billion (+2.4%) on 2017-18.
• The largest components of local authority net revenue expenditure are Education and Social Work, making up 42 and 27 per cent respectively.
• 58 per cent of net revenue expenditure was financed by Scottish Government Grants, 21 per cent from Non-Domestic Rates, 19 per cent from Council Tax and one per cent from reserves.
• Local authorities expect to use £0.157 billion of money held in reserves to pay for services in 2018-19. They will transfer in £0.047 billion of reserves from other accounts which means that General Fund reserves are expected to have fallen by 9.7% to £1.026 billion as at 31 March 2019.

2019-20 Budget Estimates

• Local authorities have set a total net revenue budget of £12.635 billion in 2019-20 – an increase of £0.497 billion (+4.1%) on the 2018-19 budget.
• The largest components of local authority budgeted net revenue expenditure are Education and Social Work, making up 44 and 27 per cent respectively.
• 57 per cent of net revenue expenditure will be financed from Scottish Government Grants, 23 per cent from Non-Domestic Rates, 19 per cent from Council Tax and one per cent from reserves.

Local authorities plan to use £0.114 billion of the money held in reserves and to transfer £0.043 billion in from other accounts in 2019-20. General Fund reserves are budgeted to fall by 6.9% to £0.955 billion by 31 March 2020.