12 March 2008

28/08

Public Expenditure Annual Outturns - National Statistics release 12 March 2008

Updates for 2006-07 and earlier years for key series

This release provides new estimates of financial year outturns for some key public expenditure series that are compiled and published by HM Treasury as National Statistics.

New estimates of outturn are being released for five series:

Table 1 – Total Managed Expenditure, by budgetary category, up to 2006-07;
Table 2 – Resource Departmental Expenditure Limits, by departmental grouping, up to 2006-07;
Table 3 – Near-cash Resource Departmental Expenditure Limits, by departmental grouping, up to 2006-07;
Table 4 – Capital Departmental Expenditure Limits, by departmental grouping, up to 2006-07;
Table 5 – Total Expenditure on Services by function, 2002-03 to 2006-07, with a link to the historical series 1987-88 to 2006-07.

The data included in this release update the National Statistics release published alongside the 2007 Pre Budget Report and Comprehensive Spending Review on 9th October 2007.

Public Expenditure by budgetary category

Total Managed Expenditure (TME) for 2006-07 is now estimated at £549.8 billion, £0.3 billion less than the October 2007 estimate of £550.1 billion.

Total Departmental Expenditure Limits (Resource DEL plus Capital DEL less depreciation) spending in 2006-07 is now estimated at £319.8 billion, which is £0.6 billion lower than the estimate of £320.4 billion in October. Resource DEL (including depreciation), at £290.9billion, is £0.3 billion lower than the £291.2 billion October estimate. These changes reflect the availability of further audited outturn for some departments replacing previous provisional outturn published in October.

Total Managed Expenditure in 2006-07 – Comparison with July 2007

2006-07 £billion

	Resource DEL¹	Capital DEL	Total DEL²	Resource AME³	Capital AME³	TME⁴
12th March 2008	291.2	38.9	320.1	215.9	3.8	549.8
9th October 2007	291.2	39.1	320.4	215.4	4.4	550.1

¹ Including depreciation
² Total DEL = Resource DEL + Capital DEL - depreciation in DEL
³ Including accounting adjustments
⁴ TME = Total DEL + Resource AME + Capital AME

These latest figures, including DEL by departmental grouping and public expenditure by function, will be available to download on the Treasury website tomorrow from the Overview of definitions, processes and data page.

Public Expenditure by function

Public spending by function includes spending by departments, the devolved administrations, local authorities and the capital spending of public corporations.

An historical public expenditure by function series was published in table 4.2 of PESA 2007, including data from 1987-88 onwards. Latest estimates of public expenditure by function and the historical data are available in PDF format. These data will be available tomorrow, to download as a consistent series, from the Functional categories page of the Treasury website.

Table 1⁽¹⁾: Total Managed Expenditure, by budgetary category, 2002-03 to 2006-07

					£ million
	National Statistics
	2002-03	2003-04	2004-05	2005-06	2006-07
	outturn	outturn	outturn	outturn	outturn
CURRENT EXPENDITURE
Resource Departmental Expenditure Limits	229,863	245,025	258,694	277,591	291,172
Near-cash Departmental Expenditure Limits	204,971	229,139	244,877	259,679	272,690
Non-cash	24,892	15,886	13,818	17,911	18,481

Resource Annually Managed Expenditure	163,478	180,320	198,169	207,033	215,860
Resource departmental AME
Social security benefits	113,604	117,801	124,781	129,600	133,463
Tax credits⁽²⁾	5,741	9,727	11,601	12,972	14,109
Net public service pensions⁽³⁾	4,150	1,796	352	3,681	3,431
National lottery	698	712	654	825	700
BBC domestic services	2,886	2,828	2,916	2,960	3,242
Student loans	-115	-203	-272	-352	-407
Non-cash items	27,898	27,157	27,798	31,764	45,320
Other departmental expenditure	1,640	1,892	1,379	2,134	2,861
Resource departmental AME	156,502	161,710	169,209	183,584	202,720
Resource other AME
Net expenditure transfers to EC institutions⁽⁴⁾	2,782	3,448	4,907	4,435	4,652
Locally-financed expenditure	19,086	19,788	20,852	22,813	23,414
Central government gross debt interest	20,915	22,280	23,934	25,807	27,576
Accounting adjustments	-35,807	-26,896	-20,733	-29,606	-42,502
Resource other AME	6,976	18,609	28,960	23,449	13,141

Public sector current expenditure	393,341	425,345	456,863	484,624	507,032


CAPITAL EXPENDITURE
Capital Departmental Expenditure Limits	27,076	30,484	32,838	35,144	38,917

Capital Annually Managed Expenditure	607	-330	2,926	4,475	3,808
Capital departmental AME
National lottery	1,121	1,193	1,039	988	701
BBC domestic services	112	-6	78	94	103
Student loans	2,303	2,314	2,261	2,419	3,207
Other departmental expenditure	-122	-388	467	489	-345
Capital departmental AME	3,414	3,113	3,845	3,990	3,666
Capital other AME
Locally-financed expenditure	978	746	2,399	4,268	5,063
Public corporations' own-financed capital expenditure	3,271	2,255	2,725	5,119	5,710
Accounting adjustments	-7,055	-6,445	-6,043	-8,902	-10,631
Capital other AME	-2,807	-3,444	-919	486	142

Public sector gross investment	27,683	30,154	35,764	39,619	42,725
less public sector depreciation	13,976	14,564	15,148	16,069	16,915
Public sector net investment	13,707	15,590	20,616	23,550	25,810

TOTAL MANAGED EXPENDITURE	421,024	455,499	492,627	524,243	549,757
of which:
Departmental Expenditure Limits	241,262	266,825	283,627	303,120	320,085
Annually Managed Expenditure	159,917	164,824	173,054	187,574	206,386
Other Annually Managed Expenditure	19,845	23,850	35,946	33,549	23,286

(1) Update of PESA 2007 Table 1.1 outturns

(2) Tax credits include working tax credits, stakeholder pension credits and, from 2003-04, Child Tax Credits. From 2003-04 to 2006-07, the Child Tax Credits do not include those child allowances that were still paid as part of Income Support and Jobseekers' Allowance, within Social Security benefits.

(3) The main pensions schemes are reported under FRS17 accounting requirements.

(4) Net expenditure transfers to the EC are comprised of the GNI-based contribution to the EC less the UK's abatement. Latest estimates (in £ billion) are given below for net payments to EC institutions and the UK's net contribution to the EC budget, as defined in annex C of Public Expenditure Statistical Analyses (PESA).

	2005-06	2006-07
Net payments to EC Institutions	3.7	2.9
UK's net contributions to the EC budget	4.4	3.5

Table 2⁽¹⁾ Resource Departmental Expenditure Limits, by departmental grouping, 2002-03 to 2006-07

					£ million
	National Statistics
	2002-03	2003-04	2004-05	2005-06	2006-07
	outturn	outturn	outturn	outturn	outturn
Resource Budget DEL
Children, Schools and Families	10,611	11,933	12,593	14,326	42,135
Health	57,115	63,605	69,118	76,372	80,425
of which: NHS (England)	55,405	61,865	66,873	74,168	78,468
Transport	4,781	6,114	6,085	6,076	6,920
Innovation, Universities and Skills	11,373	12,114	12,446	13,441	14,034
CLG Communities	1,613	3,414	3,606	3,467	3,626
CLG Local Government	37,396	40,915	43,316	46,244	22,541
Home Office	7,313	7,914	7,977	8,298	8,343
Justice	8,073	7,459	7,501	7,987	8,357
Law Officers' Departments	514	575	646	689	698
Defence	36,462	31,376	31,316	33,462	33,491
Foreign and Commonwealth Office	1,478	1,511	1,710	1,877	1,827
International Development	3,001	3,447	3,645	4,107	4,206
Business, Enterprise and Regulatory Reform	1,670	1,764	2,175	2,039	2,212
Environment, Food and Rural Affairs	2,242	2,443	2,814	2,817	3,103
Culture, Media and Sport	1,227	1,225	1,326	1,452	1,527
Work and Pensions	7,017	7,809	7,981	8,008	7,870
Scotland	16,247	18,421	19,459	20,791	22,354
Wales	8,887	9,643	10,379	10,986	11,699
Northern Ireland Executive	5,811	6,024	6,445	6,799	7,150
Northern Ireland Office	1,096	1,044	1,150	1,176	1,224
Chancellor's departments	4,041	4,284	4,603	4,786	4,955
Cabinet Office	1,240	1,314	1,661	1,562	1,735
Independent Bodies⁽²⁾	656	677	744	829	740
Total Resource Budget DEL	229,863	245,025	258,694	277,591	291,172

(1) Update of PESA 2007 Table 1.5 Resource DEL outturns

(2) Independent bodies within Departmental Expenditure Limits that are not settled as part of the Comprehensive Spending Review. Includes the Statistics Board, House of Commons, House of Lords, National Audit Office and the Office of the Parliamentary Commissioner.

Table 3⁽¹⁾ Near-cash elements of Resource Departmental Expenditure Limits, by departmental grouping, 2002-03 to 2006-07

					£ million
	National Statistics
	2002-03	2003-04	2004-05	2005-06	2006-07
	outturn	outturn	outturn	outturn	outturn
Near-cash in Resource DEL
Children, Schools and Families	10,612	11,916	12,571	14,279	42,135
Health	54,577	61,299	68,916	74,320	77,745
of which: NHS (England)	52,878	59,568	66,688	72,132	75,803
Transport	4,453	5,902	5,919	5,813	6,360
Innovation, Universities and Skills	10,526	11,295	11,783	12,619	13,357
CLG Communities	1,616	3,419	3,545	3,432	3,465
CLG Local Government	37,395	40,914	43,314	46,244	22,540
Home Office	7,163	7,825	7,896	8,182	8,184
Justice	6,611	7,206	7,736	7,809	8,062
Law Officers' Departments	510	571	636	680	691
Defence	19,981	21,360	21,847	22,726	23,452
Foreign and Commonwealth Office	1,333	1,404	1,601	1,706	1,680
International Development	2,843	3,423	3,541	4,041	4,098
Business, Enterprise and Regulatory Reform	1,666	1,802	1,993	1,825	2,077
Environment, Food and Rural Affairs	1,945	2,201	2,466	2,349	2,542
Culture, Media and Sport	1,078	1,084	1,197	1,297	1,358
Work and Pensions	6,862	7,730	7,893	7,796	7,591
Scotland	15,584	17,890	18,482	19,976	21,399
Wales	8,517	9,416	10,085	10,662	11,357
Northern Ireland Executive	5,504	5,806	6,202	6,503	6,811
Northern Ireland Office	917	935	905	974	1,012
Chancellor's departments	3,739	4,139	4,353	4,534	4,689
Cabinet Office	1,040	1,089	1,439	1,343	1,498
Independent Bodies⁽²⁾	499	513	555	569	588
Total near-cash in Resource DEL	204,971	229,139	244,877	259,679	272,690

(1) Update of PESA 2007 Table 1.7 near-cash Resource DEL outturns

Table 4⁽¹⁾ Capital Departmental Expenditure Limits, by departmental grouping, 2002-03 to 2006-07

					£ million
	National Statistics
	2002-03	2003-04	2004-05	2005-06	2006-07
	outturn	outturn	outturn	outturn	outturn
Capital Budget DEL
Children, Schools and Families	2,736	3,471	4,070	4,413	4,052
Health	2,146	2,689	2,708	2,245	3,194
of which: NHS (England)	2,073	2,602	2,624	2,151	3,069
Transport	5,059	5,233	5,223	4,999	6,505
Innovation, Universities and Skills	1,102	1,297	1,429	2,006	1,882
CLG Communities	3,057	4,597	4,984	5,531	5,435
CLG Local Government	202	214	257	316	223
Home Office	654	680	586	626	592
Justice	363	364	599	508	536
Law Officers' Departments	8	11	11	-23	11
Defence	6,115	6,002	6,701	6,410	7,070
Foreign and Commonwealth Office	102	87	117	132	160
International Development	448	302	304	447	765
Business, Enterprise and Regulatory Reform	268	445	220	1,125	1,152
Environment, Food and Rural Affairs	432	567	489	836	923
Culture, Media and Sport	28	124	154	110	329
Work and Pensions	281	222	290	354	215
Scotland	1,906	1,697	2,171	2,390	3,035
Wales	1,004	985	1,008	1,208	1,319
Northern Ireland Executive	663	618	767	835	803
Northern Ireland Office	53	50	71	59	69
Chancellor's departments	246	229	380	369	302
Cabinet Office	176	570	197	203	283
Independent Bodies⁽²⁾	28	33	102	44	60
Total Capital Budget DEL	27,076	30,484	32,838	35,144	38,917

(1) Update of PESA 2007 Table 1.10 Capital DEL outturns

Table 5⁽¹⁾ Total Expenditure on Services by function, 2002-03 to 2006-07

					£ billion
	National Statistics
	2002-03	2003-04	2004-05	2005-06	2006-07
	outturn	outturn	outturn	outturn	outturn
1. General public services	36.2	39.1	42.7	45.7	48.0
of which: domestic general public services	10.0	10.9	12.2	12.9	13.2
of which: international services	4.5	5.1	5.5	6.1	6.1
of which: public sector debt interest	21.7	23.0	24.9	26.8	28.6
2. Defence	27.0	28.8	30.0	30.9	32.3
3. Public order and safety	24.2	26.3	28.3	29.0	30.2
4. Economic affairs	30.8	33.0	33.7	35.5	38.0
of which: enterprise and economic development	5.9	6.0	6.5	6.5	6.6
of which: science and technology	2.1	2.3	2.5	3.0	2.8
of which: employment policies	3.0	3.2	3.2	3.4	3.4
of which: agriculture, fisheries and forestry	4.9	5.2	5.4	5.6	5.1
of which: transport	14.8	16.2	16.0	17.0	20.1
5. Environment protection	6.1	6.3	7.0	8.4	9.2
6. Housing and community amenities	5.4	6.6	7.9	10.5	11.5
7. Health	66.2	74.9	82.7	88.8	94.5
8. Recreation, culture and religion	9.3	9.6	10.0	10.6	11.3
9. Education (includes training)	54.7	61.0	65.0	69.6	72.9
of which: education	52.9	59.0	62.9	67.5	70.7
of which: training	1.9	2.0	2.0	2.2	2.2
10. Social protection	145.3	155.4	164.0	170.9	176.9
EC transactions	-1.9	-2.1	-0.9	-0.6	-1.8
Total Expenditure on Services	403.4	438.9	470.3	499.5	522.9
Other accounting adjustments	17.7	16.6	22.4	24.7	26.9
Total Managed Expenditure	421.0	455.5	492.6	524.2	549.8

(1) Update of PESA 2007 Table 4.2

Notes to editors

Background

1. These data are being released in accordance with the National Statistics Code of Practice, and with the Treasury's statement of compliance with the Code's protocol on release practices, available on the Treasury website

Budgetary data (Tables 1, 2, 3, and 4)

2. Presentation of public expenditure in tables 1, 2, 3 and 4 follows the Treasury's budgeting and control framework, which splits spending into Resource Budgets and Capital Budgets. These Budgets are split into Departmental Expenditure Limits (DEL) and Annually Managed Expenditure (AME). DELs are firm three year spending limits set for departments. Spending that cannot reasonably be subject to firm multi-year limits is included in AME. DEL and AME together make up Total Managed Expenditure (TME), an aggregate that is drawn from the national accounts and is defined in national accounts terms as public sector current expenditure plus public sector capital expenditure.

Spending by Function (Table 5)

3. Data on public spending by function is published annually in the Public Expenditure Statistical Analyses. The spending aggregate allocated by function is Total Expenditure on Services (TES), which is based on Total Managed Expenditure (TME), as far as this can be derived in detail from data held on the Treasury's public expenditure database. The allocation of spending to function in TES is broadly consistent with the UN Classifications of the Functions of Government. All data is UK, with spending by devolved administrations being allocated to function as appropriate. Further information on the HM Treasury functional analyses is available on the Treasury website

Sources and methodology

4. Treasury statistics on public expenditure compiled from accounting data supplied by central government departments and the devolved administrations and held on the Treasury's public expenditure database - COINS. The Department for Schools, Children and Families supplies data on local authority spending in England on education. In addition, the Department for Work and Pensions supplies data on local authority spending on social protection. All other data on local authority spending are supplied by the Department for Communities and Local Government (DCLG) and the Devolved Administrations. The spending aggregate, TME, was supplied by the Office for National Statistics (ONS) and is consistent with the joint ONS/HMT Monthly Public Sector Finance Statistics release on 24 September 2007.

5. There is more information on the budgeting system and the definition of TES in PESA 2007 in Appendices D and E respectively.

A National Statistics publication

6. Most public expenditure outturn data published by HM Treasury are published as National Statistics. National Statistics are the official source for authoritative, accurate and relevant information on the economy and society. The release of data in this press notice has followed the National Statistics Code of Practice and Protocol of Release Practices.

Enquiries

7. Media enquiries should be addressed to the Treasury Press Office on 020 7270 5238

8. Non-media enquiries should be addressed to the Treasury Correspondence and Enquiries Unit on 020 7270 4558 or by email to public.enquiries@hm-treasury.gov.uk

9. For general enquiries about National Statistics, see the National Statistics website or contact the National Statistics Public Enquiry Service on 020 7533 5888 or by email to info@statistics.gov.uk.

10. This press release and other Treasury publications and information are available on the Treasury website. If you would like Treasury press releases to be sent to you automatically by e-mail you can subscribe to this service from the press release site on the website.