The Chief Statistician has released figures on local government
finance in 2024-25. These figures provide a comprehensive
overview of the financial activity of local government, including
revenue expenditure and income; capital expenditure and
financing; reserves; debt; and pensions.
Revenue expenditure is the cost of delivering services each year.
Local authorities net revenue expenditure in 2024-25 was £14,887
million. Education Services and Social Work Services were the
services with highest net revenue expenditure, accounting for
£7,778 million and £4,873 million respectively.
Capital expenditure is expenditure that creates the buildings and
infrastructure necessary to provide services, such as schools and
roads. Local authorities incurred £4,659 million of capital
expenditure in 2024-25. This was predominantly financed by grants
and contributions of £2,101 million and borrowing of £1,479
million.
Usable reserves are local authorities' surplus income from
previous years which can be used to finance future revenue or
capital expenditure. At 31 March 2025, local authorities held
£3,931 million of usable reserves.
When local authorities borrow money or use credit arrangements to
finance capital expenditure, a debt is created which has to be
repaid from future revenues. In 2024-25, local authorities made
debt repayments of £591 million and at 31 March 2025 they had a
total debt of £25,296 million.
Background
Scottish Local Government
Finance Statistics (SLGFS) 2024-25 is based on final, audited
figures provided by local authorities (where available, or draft
accounts if these have not yet been audited).
Further information on Local Government Finance statistics publications and
data collections can be
found on the Scottish Government website.
These statistics have been produced in accordance with the Code of Practice for
Statistics.
