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Background
Local authority spending can be looked at in a number of ways.
It can be analysed in terms of how it is financed so it can be shown as the sum of central government support for local authorities within Departmental Expenditure Limits (DEL) and Departmental Annually Managed Expenditure (AME), plus locally financed expenditure in AME (council tax and other local revenue). Central government support for local authorities consist of current and capital grants, and supported capital expenditure (permissions to borrow).
The largest grants are the revenue support grant and the redistribution of pooled national non-domestic rates (NNDR). These count within the Communities and Local Government (CLG) departmental expenditure limit. Other departments provide grants for specific purposes (for example education) and these also count in the department's DEL, as does supported capital expenditure.
Departmental annually managed expenditure (AME) includes grants that reimburse local authority payments of social benefits - mainly rent rebates and rent allowances - and capital grants from the lottery distribution funds.
Local authority spending can also be analysed in terms of what the expenditure is for - such as education or social services. Or it can be broken down by economic category such as pay, procurement, subsidies, other grants and capital expenditure. Economic categories are used by the Office for National Statistics in the compilation of national accounts.
Local Authority own expenditure is defined as the contribution of local authorities to Total Managed Expenditure (TME) as measured in national accounts. TME is a consolidated measure in the sense that transactions between parts of the public sector do not add to TME. So, for example, total local authority expenditure defined here excludes capital grants paid to public corporations and interest paid to central government.
Data
TME is published quarterly by ONS in the Public Sector Accounts. The central government components of TME can also be updated monthly as part of the public sector finance statistics release. Latest TME data (and its components) are available in the Public Finances Databank.
Local authority expenditure data is published annually in Chapter 7 of Public Expenditure Statistical Analyses (PESA).
The analyses of spending deal primarily with Great Britain. Equivalent spending relating to Northern Ireland is central government spending carried out by Northern Ireland departments. Where appropriate, district council spending in Northern Ireland is included.
Data collection
Local authority expenditure data is collected via a suite of statistical returns by the:
Scottish Executive (SE)
Welsh Assembly Government
Northern Ireland (NI)
For more information on local authority finance in England visit the Communities and Local Government website.
External links
Communities and Local Government (CLG)
Scottish Executive (SE)
National Assembly for Wales (NAW)
Northern Ireland (NI)
Department for Transport, Local Government and the Regions
Info4local - a website providing local government with information from central government.
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