Public Expenditure Annual Outturns - National Statistics release 5 December 2005

Updates for 2004-05 and earlier years for key series

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

New estimates of outturn are being released for four series:

Table1 - Total Managed Expenditure, by budgetary category, up to 2004-05;
Table 2 – Resource Departmental Expenditure Limits, by departmental grouping, up to 2004-05;
Table 3 – Capital Departmental Expenditure Limits, by departmental grouping, up to 2004-05;
Table 4 – Total Expenditure on Services by function, 2000-01 to 2004-05, with a link to the historical series 1987-88 to 2004-05.

The data included in this release update provisional outturns for 2004-05. There are also some revisions to outturns for earlier years.

Public Expenditure by budgetary category

Data in tables 1, 2 and 3 update earlier estimates published in Public Expenditure Outturn White Paper (PEOWP) July 2005 (ref: Cm 6639), Public Expenditure Statistical Analyses (PESA) April 2005 (ref: Cm 6521). All documents are available on the HM Treasury website. The outturns published here for 2004-05 are still provisional and will be updated further at the next release.

Total Managed Expenditure (TME) for 2004-05 is now estimated at £487.3 billion, £1.8 billion greater than the July estimate of £485.5 billion.

Total Departmental Expenditure Limits (Resource DEL and Capital DEL excluding depreciation) spending in 2004-05 is now estimated at £283.3 billion, which is £0.6 billion greater than the estimate of £282.7 billion in July. Resource DEL (including depreciation), at £266.2 billion, is £0.7 billion lower than the £266.9 billion July estimate. These changes reflect the availability of more up-to-date information.

Total Managed Expenditure in 2004-05 – Comparison with July 2005

2004-05 billion

RAB Stage 2 basis	Resource DEL¹	Capital DEL	Depreciation in DEL	Total AME²	TME³
5 December 2005	266.2	25.4	8.4	204.0	487.3
20 July 2005	266.9	25.3	9.5	202.9	485.5

¹ Including depreciation
² AME is Total AME, ie Departmental AME, other AME and accounting adjustments
³ TME =Resource DEL + Capital DEL – depreciation in DEL + AME

These latest figures, including DEL by department grouping, will be available to download as a consistent series this page on Treasury public website from 6th December 2005.

Public Expenditure by function

Data for spending by function (Table 4) were published in Public Expenditure Statistical Analyses (PESA) April 2005 (ref: Cm 6521) and then further updated in the previous National Statistics release in July 2005. These have now been updated, in line with the revised budgetary outturns in tables 1, 2 and 3.

Public spending by function includes spending by the devolved administrations, local authorities and capital spending of public corporations.
At this stage 2004-05 local authority spending data, which is supplied by the Office of the Deputy Prime Minister (ODPM) are based on provisional outturn figures.

A historical public expenditure by function series was published in table 3.2 of PESA 2005, including data from 1987-88 onwards. Latest estimates of public expenditure by function and the historical data are available in PDF format below Table 4. These data will be available to download as a consistent series from this page on the Treasury public website from 6th December 2005.

Table 1⁽¹⁾ Total Managed Expenditure, by budgetary category, 2000-01 to 2004-05

					£ million
	National Statistics
	2000-01	2001-02	2002-03	2003-04	2004-05
	outturn	outturn	outturn	outturn	outturn
Departmental Expenditure Limits
Resource Budget	199,432	214,976	234,795	251,592	266,232
Capital Budget	15,652	18,884	21,311	23,559	25,412
less depreciation	8,980	9,378	15,845	9,031	8,370
Total Departmental Expenditure Limits	206,104	224,482	240,261	266,120	283,274

Annually Managed Expenditure
Departmental AME
Social Security benefits	101,798	109,185	113,850	118,081	125,286
Tax Credits⁽²⁾	3,903	5,189	5,829	9,779	11,735
Common Agricultural Policy	2,897	3,680	2,474	2,904	3,071
Net public service pensions⁽³⁾	1,692	3,354	4,570	1,811	577
National Lottery	1,855	1,710	1,810	1,910	1,800
Non - cash items	21,186	23,031	28,388	27,514	25,966
Other departmental expenditure	2,252	1,845	2,185	1,587	2,802
Total Departmental AME	135,583	147,995	159,105	163,585	171,236

Other AME
Net payments to the EC institutions⁽⁴⁾	3,734	842	2,345	2,463	3,305
Locally financed expenditure	18,444	21,122	19,528	21,482	25,804
Central Government gross debt interest	25,995	22,095	20,943	22,327	23,969
Public corporations own-financed capital expenditure	2,604	2,425	3,218	3,003	2,455
Total Other AME	50,777	46,485	46,034	49,274	55,533
Total AME before Accounting Adjustments	186,361	194,481	205,139	212,859	226,770

Accounting adjustments⁽⁵⁾	-28,354	-31,800	-27,446	-24,998	-22,778
Total Annually Managed Expenditure	158,006	162,680	177,693	187,861	203,992
Total managed Expenditure	364,110	387,162	417,954	453,981	487,266
of which:
Current Expenditure	346,000	363,960	392,399	426,089	453,434
Net Investment	5,467	10,120	11,544	13,634	18,944
Depreciation	12,643	13,082	14,011	14,258	14,888

(1) Update of PESA 2005 Table 1.1

(2)Tax credits include working tax credits, stakeholder pension credits and from 2003-04, Child Tax Credits previously included as child allowances in Income Support and Jobseekers Allowance.

(3) The main pensions schemes are reported under FRS17 accounting requirements. A few schemes have yet to move to an FRS17 basis and are reported on a non-FRS17 basis.

(4) 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 for which are (in £ billion):

	2003-04	2004-05
	3.3	3.9

(5) Excludes depreciation.

Table 2⁽¹⁾ Resource Departmental Expenditure Limits, by departmental grouping, 2000-01 to 2004-05

					£ million
	National Statistics
	2000-01	2001-02	2002-03	2003-04	2004-05
	outturn	outturn	outturn	outturn	outturn
Resource DEL
Education and Skills	14,744	17,237	20,898	23,028	24,182
Health	44,564	51,987	56,312	62,607	67,925
of which: NHS (England)	44,000	51,150	54,601	60,866	65,662
Transport	3,378	4,444	6,162	7,835	8,079
Office of the Deputy Prime Minister	2,461	2,181	3,381	6,013	6,211
Local Government	35,270	36,922	37,397	40,915	43,316
Home Office	8,832	10,551	11,136	11,721	12,071
Constitutional Affairs	2,801	2,998	3,343	3,206	3,404
Law Officers' Departments	392	465	514	576	646
Defence	33,394	32,334	36,422	31,317	31,271
Foreign and Commonwealth Office	1,504	1,427	1,541	1,585	1,730
International Development	2,985	3,043	3,433	3,710	3,810
Trade and Industry	6,055	5,506	4,085	4,385	5,137
Environment, Food and Rural Affairs	2,750	2,593	2,723	2,691	3,076
Culture, Media and Sport	1,086	1,049	1,247	1,290	1,390
Work and Pensions	6,115	6,478	7,361	8,287	8,388
Scotland	14,077	15,353	16,539	18,811	20,043
Wales	7,232	8,248	9,145	9,828	10,599
Northern Ireland Executive	5,687	5,479	6,012	6,371	6,905
Northern Ireland Office	973	1,073	1,096	1,044	1,171
Chancellor's departments	3,760	3,996	4,343	4,516	4,910
Cabinet Office	1,372	1,613	1,708	1,854	1,969
Total resource DEL	199,432	214,976	234,795	251,592	266,232

(1) Update of PESA 2005 Table 1.5 Resource DEL part

Table 3⁽¹⁾ Capital Departmental Expenditure Limits, by departmental grouping, 2000-01 to 2004-05

					£ million
	National Statistics
	2000-01	2001-02	2002-03	2003-04	2004-05
	outturn	outturn	outturn	outturn	outturn
Capital DEL
Education and Skills	1,944	2,110	2,729	3,339	3,768
Health	1,227	1,717	1,975	2,553	2,618
of which: NHS (England)	1,173	1,623	1,903	2,466	2,534
Transport	1,405	2,430	3,103	3,035	3,275
Office of the Deputy Prime Minister	2,732	2,194	1,975	2,572	2,791
Local Government	56	84	202	214	257
Home Office	403	576	743	929	994
Constitutional Affairs	38	84	88	130	195
Law Officers' Departments	14	23	8	11	11
Defence	5,391	5,836	6,149	6,073	6,754
Foreign and Commonwealth Office	99	55	96	50	77
International Development	-1	38	31	42	33
Trade and Industry	49	171	349	577	281
Environment, Food and Rural Affairs	170	253	260	355	328
Culture, Media and Sport	34	37	43	106	102
Work and Pensions	41	162	264	186	290
Scotland	1,173	1,761	1,594	1,401	1,661
Wales	559	544	684	807	859
Northern Ireland Executive	304	348	518	355	374
Northern Ireland Office	35	41	53	50	71
Chancellor's departments	-223	205	262	253	431
Cabinet Office	202	215	182	522	241
Total Capital DEL	15,652	18,884	21,311	23,559	25,412

(1) Update of PESA 2005 Table 1.9 Capital DEL part

Table 4⁽¹⁾ Total Expenditure on Services by function, 2000-01 to 2004-05

				accruals	£ billion
	National Statistics
	2000-01	2001-02	2002-03	2003-04	2004-05
	outturn	outturn	outturn	outturn	outturn
General public services	9.1	10.5	11.0	12.1	13.3
EU transactions	-2.6	-4.8	-1.9	-2.2	-0.8
International services	4.2	4.5	4.8	5.3	5.6
Public sector debt interest	26.5	22.6	21.6	22.9	24.5
Defence	24.9	24.6	26.1	27.5	28.6
Public order and safety	20.2	22.9	24.7	27.0	29.5
Enterprise and economic development	4.9	5.2	6.0	6.8	7.2
Science and technology	1.4	1.7	2.0	2.3	2.4
Employment policies	3.8	3.8	3.7	4.0	3.7
Agriculture, fisheries and forestry	4.7	6.4	4.8	5.3	5.5
Transport	8.5	10.7	13.1	15.9	15.8
Environment protection	5.0	5.4	5.9	6.1	6.9
Housing and community amenities	5.3	6.2	5.4	6.4	7.8
Health	54.4	59.8	66.2	74.7	82.6
Recreation, culture and religion	6.2	6.1	6.8	6.8	6.9
Education and training	45.9	51.0	54.7	60.9	65.1
of which: Education	44.5	49.8	53.3	59.2	63.3
Social protection	127.9	136.6	144.5	155.2	163.6
Total Expenditure on Services	350.3	373.1	399.5	436.8	468.2
Other accounting adjustments	13.8	14.1	18.5	17.1	19.1
Total Managed Expenditure	364.1	387.2	418.0	454.0	487.3

(1) Update of PESA 2005 Table 3.2

A consistent historical Total Expenditure on Services series from 1987-88 is available in PDF format from the link below.

PDF file of latest historical public expenditure by function series (13 KB)

Notes to Editors

Background

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 here.

Budgetary data (Tables 1, 2, and 3)

2. Presentation of public expenditure in tables 1, 2 and 3 follows the Treasury’s budgeting and control framework, which splits spending into Resource Budgets and Capital Budgets. These Budgets are split into Departmental Expenditure Limits (DEL) and Annually Managed Expenditure (AME). DELs are firm three year spending limits set for departments. 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.

Spending by Function (Table 4)

3. Data on public spending by function are published annually in Public Expenditure Statistical Analyses. The spending aggregate allocated by function is Total Expenditure on Services (TES), which is based on Total Managed Expenditure (TME), as far as this can be derived in detail from data held on the Treasury’s public expenditure database. The allocation of spending to function in TES is broadly consistent with the UN Classifications of the Functions of Government. All data are UK, with spending by devolved administrations being allocated to function as appropriate. Further information on HM Treasury functional analyses is available on the HM Treasury website here.

Methodology and definitions

4. Treasury statistics on public expenditure are compiled from accounting data that are supplied by central government departments and the devolved administrations, and held on the Treasury’s public expenditure database. The Department for Education and Skills supplies data on local authority spending in England on education. In addition, the Department for Work and Pensions supplies data on local authority spending on social protection. All other data on local authority spending are supplied by the Office of the Deputy Prime Minister (for England) and by the devolved administrations. The Office of the Deputy Prime Minister has provided revisions to provisional outturn data to estimate local authority spending in 2004-05. The Office of the Deputy Prime Minister will publish these data in full, as National Statistics, in 2006. The spending aggregate, TME, was supplied by the Office for National Statistics (ONS) and is consistent with the joint ONS/HMT Monthly Public Sector Finance Statistics release of the 18th November 2005.

5. There is more information on the budgeting system and the definition of TES in PESA 2005 in Appendices D and E respectively.

Change in classification

6. There have been a number of classification changes since the July release. These reclassifications ensure that data is consistent with the UN Classification of the Functions of Government. The most significant of these are:

a reclassification of concessionary fares spending from transport to social protection. The impact of this is around £0.5bn a year in the years 2000-01 to 2004-05.
the reclassification of water supply expenditure from environment protection to the housing and community amenities function. The impact of this reclassification is between £0.3bn and £0.7bn a year in the years 2000-01 to 2004-05.
the reclassification of some expenditure on agriculture, food and fisheries research from agriculture to science and technology to be consistent with the UN Classification of the Functions of Government. The impact of this is below £0.1bn a year in the years 2000-01 to 2004-05.
the reclassification of some spending on strategic programme funds from social protection to international services. The impact of this reclassification is around £0.2bn a year in the years 2000-01 to 2004-05.

Change in Total Expenditure on Services (TES) definition

7. The definition of TES was amended for this National Statistics release. TES now includes the receipts of donations to finance capital expenditure of central government departments, agencies and non-departmental public bodies (NDPBs), where the donor is in the private sector or a public corporation. The effect of this amendment is a decrease of approximately £0.1bn in the years 2000-01 to 2004-05.

Introduction of British Energy Into TES

8. From 2002-3, TES also includes British Energy capital expenditure, classified under ”Enterprise and economic development” in Table 4. On 24 September 2004, the ONS announced that British Energy would be treated as a public corporation with effect from 9 September 2002. This decision was implemented by the ONS in December 2004. British Energy’s capital expenditure is included in the national accounts based TME number. This has led to an increase in TES of £230m for 2002-03, £429m in 2003-04, and £433m in 2004-05.

A National Statistics publication

9. Most public expenditure outturn data published by HM Treasury are published as National Statistics. National Statistics are the official source for authoritative, accurate and relevant information on the economy and society. For more information about National Statistics visit their website (details below). The release of data in this press notice has followed the National Statistics Code of Practice and Protocol of Release Practices.

Internet version

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