The Chief Statistician has released figures on local government
finance in 2023-24. 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 2023-24 was £14,296
million. Education and Social Work were the services with highest
net revenue expenditure, accounting for £6,960 million and £4,604
million respectively.
Net revenue expenditure on Central Services increased by 103.2
per cent, or £352 million, between 2022-23 and 2023-24. Of this
increase, £260 million was due to Equal Pay payments that were
made by Glasgow City Council during 2023-24.
Capital expenditure is expenditure that creates the buildings and
infrastructure necessary to provide services, such as schools and
roads. Local authorities incurred £3,689 million of capital
expenditure in 2023-24. This was predominantly financed by grants
and contributions of £1,704 million and borrowing of £1,640
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 2024, local authorities held
£4,258 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 2023-24, as a result of the
statutory flexibility granted by Ministers, local authorities
made debt repayments of minus £67 million. That is, rather than
repay debt, they received a windfall of £67 million as a result
of the service concession flexibilities.
Background
Scottish Local Government
Finance Statistics (SLGFS) 2023-24 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.
