48/03

9 April 2003

PUBLIC SPENDING ANNUAL OUTTURNS:

Update of key series to 2001-02

This release provides updated estimates of financial year outturns for some key public expenditure series that are complied and published by H M Treasury as National Statistics.  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.

New estimates are being released for three series:

• Table1 - Total Managed Expenditure, by budgetary category (Spending Review 2000 budgeting basis).
• Table 2 -  Departmental Expenditure limits, resource and capital, by departmental group (SR2000 budgeting).
• Table 3 - Total Managed Expenditure, by broad function.

The data included in this release form part of a comprehensive set of data and analyses of UK public expenditure to be published by H M Treasury on 6 May in Public Expenditure Statistical Analyses 2003-04.

Public Expenditure by budgetary category

Data in Tables 1 and 2 update earlier estimates published in the Pre-Budget Report (November 2002) and in Public Expenditure 2001-02 Provisional Outturn (July 2002).  Both documents are available on the Treasury website.

Total Managed Expenditure in 2001-02 is now estimated at £389.6 billion, as compared with £391.8 billion in the Pre-Budget Report.

Total Departmental Expenditure Limits (SR2000 budgeting basis) spending is now estimated at £211.8 billion, slightly lower than the estimate of £212.3 billion in the Pre-Budget Report.  Resource DEL, at £188 billion, is £0.7 billion lower, but Capital DEL, at £23.7 billion, is unchanged from the Pre-Budget Report.

Total Managed Expenditure - Comparison with Pre- Budget Report

 Resource DEL

 Capital DEL

 AME

 TME

 April 2003

188.0

 23.7

 177.8

 389.6

 PBR Nov 2002

 188.7

 23.7

 179.5

 391.8

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Public Expenditure by Function

Data for spending by function (Table3) was last published in May2002 in Public Expenditure Statistical Analyses 2002-03. This is the first time that outturns for 2001-02 have been published on this basis.

Table 1          Total Managed Expenditure, 1998-99 to 2001-02

                                     (SR2000 budgeting presentation)

1,831

1,908

1,855

1,710

-101

928

1,746

4,061

7,345

7,372

9,240

9,579

9,091

9,442

9,939

10,266

333,297

343,632

366,816

389,579

314,667

326,601

348,575

366,584

6,015

4,385

5,197

9,575

1 Net payments to EC institutions exclude the UK's contribution to the cost of EC aid to non-Member states (which is attributed to the aid programme). Net payments therefore differ from the UK's net contribution to the EC budget, latest estimates of which are: £3.3 bn in 1999-00; £4.3 bn in 2001-02 and £1.5bn in 2001-02.

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Table 2          Departmental Expenditure Limits, 1998-99 to 2001-02

                                           (SR2000 budgeting presentation)

271

264

742

0

17,437

18,695

20,115

23,716

170,897

178,530

192,652

211,793

1. 
   The outturns for Defence for 1997-98 include receipts from the sale of Ministry of Defence married quarters.
   
2. 
   Includes expenditure financed from the National Lottery
   
3. 
   Includes net payments to the European Communities and activities such as tax collection and the registration of the population.
   
4. 
   The definition of expenditure on services is set out in Appendix F of Public Expenditure Statistical Analyses 2002-03.
   
5. 
   Includes net public service pensions.
   

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Table 3          Total Managed Expenditure by function, 1997-98 to 2001-02

4,176

4,950

5,576

5,528

5,803

97,364

99,404

103,224

109,584

118,455

7,924

10,172

10,188

11,519

8,256

277,087

288,946

302,374

326,722

354,727

29,722

29,355

25,283

26,404

22,493

16,756

14,996

15,975

13,690

12,359

323,565

333,297

343,632

366,816

389,579

 1. Excludes trust debt remuneration 2 .The outturns for Defence for 1997-98 include receipts from the sale of Ministry of Defence married quarters
 3. Includes expenditure financed from the National Lottery
 4. Includes tax credit payments in excess of an individual’s tax liability
 5. Includes net payments to the European Communities and activities such as tax services and the registration of the population
 6.The definition of expenditure on services is set out in Appendix F of Public Expenditure Statistical Analyses 2002-03
 7.  Includes net public service pensions

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Notes to Editors

Background

Budgetary data (Tables 1 and 2)

1. Presentation of public expenditure in Tables 1 and 2 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 separte 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.

2. 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 no-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.

3. 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 2003 Budget are on the basis of SR2002 budgeting.  Estimates of outturn on this basis will be published in Public Expenditure Statistical Analyses 2003-04. 

Spending by Function (Table 3)

4. Data on public spending by function is published annually in Public Expenditure Statistical Analyses.  The spending aggregate allocated by function is expenditure on services, which covers most expenditure by the public sector included in TME.  It excludes debt interest payments, public services pension payments and some accounting adjustments. Expenditure on services is broken down into 12 broad functions.  All data is UK, with spending by devolved administrations being allocated by function as appropriate. 

Methodology and definitions

5. 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 is supplied by the Office of the Deputy Prime Minister (for England) and by the devolved administrations.  

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A National Statistics publication

6. 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. It brings together a vast range of statistical information overseen by the National Statistician.  The National Statistics logo is your assurance of statistics produced to the highest professional standards.  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.

Internet version

7. If you have access to the Internet, you can find this news release and other Treasury information at www.hm-treasury.gov.uk.

Enquiries

8. Media enquiries about this press release should be addressed to Treasury Press Office on 020 7270 5238. 
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

10.  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:
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You can also find National Statistics on the National Statistics website, www.statistics.gov.uk.

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