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Scottish Local Government Financial Statistics for 2002-2003 were published today. ...
Scottish Local Government Financial Statistics for 2002-2003 were published today.

The main findings are:

Local authority gross revenue expenditure in 2002-03 was£14.5 bn, an increase of 11.7 per cent on 2001-2002.

Within gross revenue expenditure, general fund services expenditure accounted for 69 per cent (£10.0bn) and housing expenditure for 19 per cent (£2.7bn). The remaining expenditure was in trading services (£0.1bn) and special funds (£1.6bn).

Taking gross revenue expenditure by category; operating expenses accounted for 49 per cent of revenue expenditure (£7.1bn), with spending on employee costs taking up 34 per cent of revenue expenditure (£5.0bn). Loan charges accounted for 9 per cent of revenue expenditure (£1.3bn).

Net revenue expenditure on general fund services was£8.5 bn, an increase of 10.7 per cent on 2001-2002. Of this, education accounted for 39 per cent (£3.3bn), social work for 19 per cent (£1.6bn) and police, fire and emergency services for 12 per cent (£1bn). These figures represent increases of 11.4 per cent, 19.2 per cent and 2.7 per cent respectively on 2001-02.

Local authority total revenue income for all local authority accounts in 2002-03 was£14.4bn, an increase of 8.1 per cent on 2001-2002. This revenue income was sourced from government grants of£7.0bn, fees and charges (mainly council house rents) of£2bn, non-domestic rates of£1.7bn and council tax of£1.5bn. Other income, including the use of balances, contributed£2.2bn.

Local authority gross capital expenditure (excluding capital funded from current revenue) in 2002-03 was£1bn - driven mainly by the cost of new construction and purchase of vehicles etc. Local authority usable capital income in 2002-03 was£0.3bn.

Scottish local authority debt on all services at 31st March 2003 was£9.1bn or£1,806 per head of population. This is a decrease of£0.9bn (8.5 per cent) from last year's figure, most of which is attributable to debt redemption associated with the Glasgow stock transfer.


GROSS EXPENDITURE is expenditure incurred without taking account of any

associated income (although inter-account and inter-authority transfers are deducted to avoid double-counting).

1.2 NET REVENUE EXPENDITURE is revenue expenditure financed by government

grants (including Revenue Support Grant), local taxes and the use of balances.

1.3 CAPITAL EXPENDITURE relates to the provision and improvement of tangible

fixed assets (such as schools, new houses and machinery) which continue to be of value long after their acquisition. CAPITAL INCOME is made up mostly from the sale of these assets.

1.4 The general fund is the account where most transactions of a local

authority take place; it is therefore, by far, the largest account.

1.5 The Housing Revenue Account (HRA) records expenditure and income

associated with dwellings provided under the Housing (Scotland) Act 1987. Housing is the only service where a separate 'ring-fenced' account is required by law. Expenditure and income on other housing services, such as the provision of renovation grants to private homeowners, is charged to the general fund.

1.6 Trading services are local authority services which are, or are intended

to be, self-financing through fees and charges levied on the users of the service. Because of the differences between the funding for trading services and other activities their accounts are maintained separately.

1.7 Superannuation, Special and Common Goods Funds are maintained outside of

the general fund.

This publication covers the transactions of local authorities and joint

boards as defined in the Local Government (Scotland) Act 1973. It contains a summary of local authority revenue and capital expenditure and income broken down into specific sections covering general fund services, housing, trading services and other funds.< p/="">

As well as these expenditure and income tables there are also sections on outstanding capital debt, and local taxes (non-domestic rates and council tax).

Scottish Local Government Financial Statistics 2002-03 is a National Statistics publication available at the Local Government Finance Statistics website.

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