Provisional outturn 2015-2016 and budget estimates 2016-2017

Provisional Outturn 2015-16 and Budget Estimates 2016-17

21 ^st June 2016

This Statistics Publication Notice provides details of the Provisional Outturn 2015-16 and Budget Estimates 2016-17 for local authorities in Scotland. This data is collected on the Provisional Outturn and Budget Estimates ( POBE) return which collects data on net revenue expenditure for services provided by Scottish local authorities. Net Revenue Expenditure is funded from General Revenue Funding (General Revenue Funding plus Ring-fenced Revenue Grants), Non-Domestic Rates, council tax and reserves.

The key points are:

2015-16 - Provisional Outturn

• Scotland's local authorities' provisional outturn total net revenue expenditure is £11.994 billion. This is an increase of £95 million (0.8%) compared with 2014-15.
• £4.793 billion of the expenditure in 2015-16 is on Education, an increase of £116 million (2.5%) on 2014-15. £3.176 billion is on Social Work, an increase of £59 million (1.9%). These two services account for around two thirds of expenditure, with Education accounting for 40.0% of total expenditure and social work accounting for 26.5%.
• Provisional outturn for other main services are: Environmental Services £0.692 billion (5.8%), Culture and Related Services £0.596 billion (5.0%), Roads & Transport £0.448 billion (3.7%), Planning & Development £0.293 billion (2.4%). All other expenditure, including non- HRA housing and Central Services totals £1.996 billion (16.6%) ( Table 1).
• Local Authorities received total funding of £11.947 billion from General Revenue Funding (59.7% of funding), Non-Domestic Rates Distributable Amount (23.3%) and Council Tax (17.0%). The £0.047 billion difference between expenditure and funding was met from General Fund reserves (£0.033 billion) and transfers from other reserves (£0.014 billion). ( Table 3).
• At 1 ^st April 2015, local authorities held General Fund reserves of £1.079 billion, which fell by 3.1% to £1.046 billion at the 31 ^st March 2016. ( Table 3). Of the 32 authorities, 15 authorities drew on reserves to fund expenditure in 15-16 and 17 increased their reserves.

Chart 1: Provisional Outturn by Service, 2015-16

Chart 2: Funding of Provisional Outturn by Source, 2015-16

2016-17 - Budget Estimates

• For 2016-17 Scotland's local authorities have set a net revenue expenditure budget of £11.724 billion for spending on all services. This is £153 million less (1.3%) than the budget set for 2015-16.
• £4.826 billion of the 2016-17 budget is for Education, an increase of £61 million (1.3%) on 2015-16. £3.086 billion is on Social Work, a decrease of £20 million (0.6%). These two services account for over two thirds of the budget, with Education accounting for 41.2% of the total budget and social work accounting for 26.3%.
• 2016-17 budget estimates for other main services are: Environmental Services £0.668 billion (5.7%), Culture and Related Services £0.560 billion (4.8%), Roads & Transport £0.419 billion (3.6%), Planning & Development £0.251 billion (2.1%). All other expenditure, including non- HRA housing and Central Services totals £1.914 billion, 16.3% of the total budgeted net revenue expenditure ( Table 2).
• Local Authorities have budgeted to receive total funding of £11.635 billion from General Revenue Funding (58.5% of total funding), Non-Domestic Rates Distributable Amount (23.8%) and Council Tax (17.6%). Authorities plan to meet the £0.089 billion difference between expenditure and funding from General Fund reserves (£0.069 billion) and transfers from other reserves (£0.020 billion) ( Table 4).
• At 1 ^st April 2016, local authorities estimated General Fund reserves of £1.046 billion, 21 authorities have set budgets that call on reserves, 9 have set budgets that neither call on, or increase reserves, and 2 have set budgets that increase reserves. Overall General Fund reserves are expected to fall by 6.6% to £0.977 billion by the 31 ^st March 2017 ( Table 4).

Chart 3: Budget Estimates by Service, 2016-17

Chart 4: Funding of Budget Estimates by Source, 2016-17