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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)
£ million
 Outturn
1998-99 1999-00 2000-01 2001-02
Departmental Expenditure Limits
Resource budget 153,460 159,835 172,537 188,077
Capital budget 17,437 18,695 20,115 23,716
Total Departmental Expenditure Limits 170,897 178,530 192,652 211,793
Annually Managed Expenditure
Social Security benefits 91,975 96,988 99,131 106,817
Housing Revenue Account subsidies 3,486 3,285 3,096 4,527
Common Agricultural Policy 3,060 2,814 2,966 3,713
Export Credits Guarantee Department -154 925 1,315 141
Self-financing Public Corporations 709 1,387 1,374 1,000
Net Public service pensions 4,966 5,031 5,056 4,973
National Lottery

1,831

1,908

1,855

1,710
Other Programme Spending

-101

928

1,746

4,061
Non-cash items:

 
Depreciation

7,345

7,372

9,240

9,579
Cost of capital charges

9,091

9,442

9,939

10,266
Provisions and other charges 1,083 2,901 5,143 3,354
Total departmental AME 123,294 132,981 140,862 150,141
Other AME
Net payments to EC institutions1 3,590 2,807 3,697 770
Locally financed expenditure 17,501 18,585 18,383 19,835
Central government gross debt interest 28,760 24,927 25,945 22,051
Accounting Adjustments -10,745 -14,197 -14,723 -15,011
Total other AME 49,851 46,318 48,025 42,657
Total Annually Managed Expenditure 162,400 165,102 174,164 177,786
Total Managed Expenditure

333,297

343,632

366,816

389,579
Of which:
Current expenditure

314,667

326,601

348,575

366,584
Net investment

6,015

4,385

5,197

9,575
Depreciation 12,615 12,646 13,044 13,420
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)
£ million
Outturn
1998-99 1999-00          2000-01 2001-02
Resource Budget
Education and Skills 11,666 12,190 14,222 16,503
Health 38,242 39,937 43,437 48,655
of which: NHS 37,530 39,307 42,706 47,501
Transport 2,590 2,702 2,831 2,686
Office of the Deputy Prime Minister 569 625 740 1,328
Local Government 32,375 33,922 35,270 36,922
Home Office 6,812 7,060 8,418 9,684
Lord Chancellor's departments 2,655 2,054 2,645 2,911
Attorney General's departments 333 331 361 400
Defence 17,729 18,152 19,239 18,540
Foreign and Commonwealth Office 953 1,025 1,178 1,263
International Development 2,012 2,528 2,732 3,168
Trade and Industry 2,746 2,854 3,039 3,536
Environment, Food and Rural Affairs 1,570 1,717 1,815 2,731
Culture, Media and Sport 853 925 960 1,022
Work and Pensions 5,338 5,264 5,438 6,152
Scotland 11,675 12,100 12,805 14,232
Wales 6,028 6,297 6,801 7,501
Northern Ireland Executive 3,937 4,170 4,421 4,748
Northern Ireland Office 964 956 916 987
Chancellor's Departments 3,160 3,318 3,514 3,837
Cabinet Office 984 1,214 1,122 1,271
Welfare to Work 269 493 635 0
Total Resource Budget DEL 153,460 159,835 172,537 188,077
Capital Budget
Education and Skills 888 1,094 1,582 2,497
Health 760 969 1,310 1,871
of which: NHS 700 908 1,246 1,778
Transport 1,978 2,474 2,151 4,316
Office of the Deputy Prime Minister 3,171 3,146 3,797 2,646
Local Government 360 272 56 85
Home Office 473 458 481 802
Lord Chancellor's departments 96 57 64 120
Attorney General's departments 5 4 14 22
Defence 5,989 5,976 5,740 5,880
Foreign and Commonwealth Office 101 102 130 77
International Development -22 25 -16 24
Trade and Industry 247 191 345 550
Environment, Food and Rural Affairs 284 343 344 513
Culture, Media and Sport 115 76 61 72
Work and Pensions -286 63 63 160
Scotland 1,370 1,701 1,813 2,164
Wales 783 632 775 933
Northern Ireland Executive 491 479 561 539
Northern Ireland Office 23 26 36 20
Chancellor's Departments 108 141 -146 215
Cabinet Office 231 203 210 211
Welfare to Work

271

264

742

0
Total Capital Budget DEL

17,437

18,695

20,115

23,716
Total DEL

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
£ million
Outturn
1997-98 1998-99 1999-00 2000-01 2001-02
Education 37,413 38,981 40,895 44,176 49,354
Health and personal social services1  54,147 57,344 62,337 66,886 74,082
of which: Health1 43,809 46,365 50,235 53,967 60,172
Transport 9,225 8,690 8,551 9,144 11,515
Housing 3,718 3,679 2,766 2,990 4,463
Other environmental services 8,554 8,534 9,900 11,086 12,123
Law, order and protective services  17,007 17,475 18,766 20,307 23,180
 Defence2 20,946 22,634 22,717 26,423 24,752
International Development assistance and other international services 2,869 3,165 3,430 4,055 5,077
Trade, industry, energy and employment 8,795 9,093 9,462 9,875 10,821
Agriculture, fisheries, food and forestry 4,949 4,825 4,562 5,149 6,846
Culture, Media and Sport3

4,176

4,950

5,576

5,528

5,803
Social protection4

97,364

99,404

103,224

109,584

118,455
Central administration and associated expenditure 5

7,924

10,172

10,188

11,519

8,256
Total expenditure on services6

277,087

288,946

302,374

326,722

354,727
Public sector debt interest 

29,722

29,355

25,283

26,404

22,493
Other accounting adjustments 7

16,756

14,996

15,975

13,690

12,359
Total Managed Expenditure

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:
Room DG/18
1 Drummond Gate
LONDON
SW1V 2QQ
You can also find National Statistics on the National Statistics website, www.statistics.gov.uk.

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