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Newsroom & speeches
68/04
20 July 2004
This release provides new estimates of financial year outturns for some key public expenditure series that are compiled and published by H M Treasury as National Statistics. It also announces the planned future release of some additional expenditure analyses.
New estimates of outturn are being released for four series:
Provisional outturn data for 2003-04 are now being released for the first time and are now included within the scope of National Statistics. There are also some limited revisions to data for earlier years.
Data on a SR 2000 RAB stage 1 budgeting basis only includes outturn up to 2002-03, since that was the last year for which spending was planned on that basis. These SR2000 RAB stage 1 outturn data are now final, and these data will not be updated or released again. From 2003-04 all expenditure was planned on a full RAB basis, therefore all future outturn updates will also be on this basis.
The provisional outturns for 2003-04 in table 3 are also included in the Public Expenditure Outturn White Paper 2003-04 (PEOWP), published today (20 July) as CM 6293.
Data in tables 1, 2 and 3 updates earlier estimates published in Public Expenditure Statistical Analyses (PESA) in April 2004 (ref: Cm6201). Estimates for 2003-04 (table 3 only) were then forecasts and not included in the scope of National Statistics. The estimates for 2003-04 are still very provisional and will be further updated at the next release.
Total Managed Expenditure (TME) for 2003-04 is now estimated at £453.4 billion, lower than the PESA 2004 estimate of £459.0 billion. Total Departmental Expenditure Limits (full RAB basis, excluding depreciation) spending in 2003-04 is now estimated at £264.4 billion, which is £0.9 billion lower than the estimate of £265.3 billion in April. Resource DEL, at £250.4 billion, is £1.5 billion lower than April. These changes reflect the availability of more up-to-date information.
|
RAB Stage 2 basis |
Resource DEL1 |
Capital DEL1 |
AME |
TME |
|
July 2004 |
250.4 |
23.2 |
213.4 |
453.4 |
|
April 2004 |
251.9 |
23.9 |
193.7 |
459.0 |
A departmental breakdown of these latest DEL and AME figures, including plans data up to 2007-08, are available for download below:
Excel file of latest public spending budgetary data (77kb)
CSV file of latest public spending budgetary data (24kb)
Data for spending by function (Table 4) was last released in Public Expenditure Statistical Analyses (PESA) in April 2004 (ref: Cm6201). These have now been updated, in line with the revised budgetary outturns in tables 1, 2 and 3, and are available for download below:
Excel file of latest public spending by function data (44kb)
CSV file of latest public spending by function data (8kb)
Public spending by function includes spending by the devolved administrations, local authorities and capital spending of public corporations. At this stage there is only very limited outturn data for local authority spending in 2003-04. The estimates of the local authority components of public spending for each function are largely based on local authority budget information.
An historical public expenditure by function series was published in table 3.2 of PESA 2004, including data from 1993-94 onwards. Further historical data will be released on the Treasury public website on 27th September 2004 within the following pages:
Departmental expenditure on services by function, country and region were published in table 8.16 of PESA 2004 for 2002-03. The same analyses for the additional historical years of 1998-99, 1999-00, 2000-01 and 2001-02 will be released on the Treasury public website on 27th September 2004 within the following pages:
The following tables are published as part of this press notice:
These tables can be downloaded in Excel and CSV format below:
Excel file of Table 1 (18kb) CSV file of Table 1 (3kb)
Excel file of Table 2 (19kb) CSV file of Table 2 (4kb)
Excel file of Table 3 (18kb) CSV file of Table 3 (4kb)
Excel file of Table 4 (17kb) CSV file of Table 4 (2kb)
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.
2. Presentation of public expenditure in tables 1, 2 and 3 follows the Treasury’s budgeting and control framework, which splits spending into Departmental Expenditure Limits (DEL) and Annually Managed Expenditure (AME). DELs are firm three year spending limits set for departments; there are separate DELs for resource and capital spending. 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 net investment plus depreciation.
3. The DEL/AME budgeting framework was introduced in 1998 for the Comprehensive Spending Review, which set spending plans for 1999-2000 to 2001-02. The 2000 Spending Review (SR2000) saw the introduction of resource budgeting, with a transitional resource budgeting regime under which certain non-cash items were in AME rather than in DEL. Planning and control of public spending for 2001-02 and 2002-03 has been under the SR2000 budgeting rules. The presentation of public expenditure in tables 1 and 2 follows SR2000 budgeting.
4. Full resource budgeting was introduced for the 2002 Spending Review, and will operate for planning and control of spending from 2003-04. Spending plans in the 2004 Budget are on the basis of SR2002 budgeting and the presentation of public expenditure in table 3 follows SR2002 budgeting.
5. Data on public spending by function is published annually in Public Expenditure Statistical Analyses. The spending aggregate allocated by function is Total Expenditure on Services (TES), which is based as far as possible on Total Managed Expenditure (TME), as far as this can be derived in detail from data held on the PES database. The coverage of TES is consistent with the UN Classifications of the Functions of Government and the functional categories represent this. All data is UK, with spending by devolved administrations being allocated by function as appropriate. Reclassification of NHS Trusts 6. ONS announced on 2nd July 2003 (http://www.statistics.gov.uk/pdfdir/fou0703.pdf ) the intention to reclassify NHS trusts from the public corporations sector to the central government sector. The change was effected by ONS on 30 June 2004. The change covers all years back to 1991.
7. When NHS trusts were shown as public corporations, TME included the government's purchases of services from them. These payments included sums to cover the trusts' payments of salaries and trusts' purchases of goods and services. The level of government purchases also allowed trusts to run operating surpluses which funded trusts' payments of interest and dividends to government and capital expenditure equal to the depreciation on their assets. The whole of trusts' capital expenditure scored in TME.
8. With trusts in the central government sector, TME records trusts' expenditure on salaries, goods and services, depreciation and capital assets. Apart from small timing differences, the amounts in respect of these items will be much the same under both methods of scoring.
9. However, central government non-trading bodies do not show operating surpluses. So TME falls by the amount of government payments that supported the element of the operating surplus that was used to pay interest and dividends within the public sector. This was around £1.5 bn up to 02/03. In 03/04 it was only £0.9 bn following the 40% reduction in the rate of return (from 6% to 3.5%), which took effect on the transactions (as opposed to the retrospective accruals accounts) from the start of 2003/04.
10. This reduction in TME is balanced by a reduction on the revenue side of the accounts. So there is no effect on fiscal balances. There is also no effect on the real spending power of NHS trusts.
11. Treasury statistics on public expenditure are compiled from accounting data that is supplied by central government departments and the devolved administrations, and held on the Treasury’s public expenditure (PES) database. Data on local authority spending are supplied by the Office of the Deputy Prime Minister (for England) and by the devolved administrations. The spending aggregate, TME, is supplied by the Office for National Statistics and was last updated today on 20th July 2004.
12. Most public expenditure outturn data published by H M Treasury are published as National Statistics. National Statistics is the official source for authoritative, accurate and relevant information on the economy and society. For more information about National Statistics visit their website. The release of data in this press notice has followed the National Statistics Code of Practice and Protocol of Release Practices.
3. If you have access to the Internet, you can find this news release and other Treasury information at http://www.hm-treasury.gov.uk/ .
14. Media enquiries about this press release should be addressed to the Treasury Press Office on 020 7270 5238
15. Public enquiries (non-media) about this press release should be addressed to the Treasury’s Public Enquiry Unit on: Telephone: 020 7270 4558 Fax: 020 7270 4574 Email public.enquiries@hm-treasury.gov.uk
16. National Statistics Public Enquiry Service For general enquiries about National Statistics, contact the National Statistics Public Enquiry Service on Telephone: 020 7533 5888 minicom: 01633 812399 E-mail info@statistics.gov.uk Fax: 01633 652747 Letters: Room DG/18, 1 Drummond Gate, LONDON, SW1V 2QQ You can also find National Statistics on the National Statistics website, http://www.statistics.gov.uk/ .
