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 |
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) |
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| £ 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 | ||
|
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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 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.
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.
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.
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