55/06

20 July 2006

Public Expenditure Annual Outturns - National Statistics release 20 July 2006

Updates for 2005-06 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:

  • Table 1 – Total Managed Expenditure, by budgetary category, up to 2005-06
  • Table 2 – Resource Departmental Expenditure Limits, by departmental grouping, up to 2005-06
  • Table 3 – Near-cash elements of Resource DEL, by departmental grouping, up to 2005-06
  • Table 4 – Capital Departmental Expenditure Limits, by departmental grouping, up to 2005-06.

The data included in this release form updates Public Expenditure Statistical Analyses (PESA) 2006, published on 15th May 2006.

What’s New?

This National Statistics public spending outturn updates adds a new series to previous spending updates. It covers outturn data on the control total near-cash in Resource DEL by departmental group (table 3). In this update for all tables, 2005-06 outturns first become National Statistics. Further updates will be published on the same day as Pre-Budget Report 2006 and Budget 2007. Outturn and plans data for near-cash in Resource DEL by departmental group already appear in PESA.

Non production of functional series

Due to production difficulties, Table 5 (Total Expenditure on Services by function) has not been included in this National Statistics update.  We plan to produce it for the next National Statistics update at PBR as normal.

Public Expenditure by budgetary category

Data in all tables update earlier estimates published in PESA 2006 on 15th May 2006. All documents are available on the HM Treasury website.

Total Managed Expenditure (TME) for 2005-06 is now estimated at £524.9billion, £1.7billion greater than the May 2006 estimate of £523.2billion.

Total Departmental Expenditure Limits (Resource DEL and Capital DEL excluding depreciation) spending in 2005-06 is now estimated at £300.5 billion, which is £2.9 billion lower than the estimate of £303.4 billion in May.  Resource DEL (including depreciation), at £276.5billion, is £1.5 billion lower than the £278.0 billion May estimate. These changes reflect the availability of more up-to-date information.

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Total Managed Expenditure in 2005-06 – Comparison with May 2006

2004-05  £ billion

  Resource DEL1 Capital DEL Depreciation in DEL Total AME2 TME3
20 May 2006 276.5 36.2 12.2 224.4 524.9
15 May 2006 278.0 37.3 11.9 219.8 484.1


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 on the Treasury public website from 20 July 2006 within the public spending overview page.

Data Quality

The system used by central government departments and devolved administrations to report expenditure data is being replaced by a new system, the Combined On line Information System (COINS). Departments have completed the process of migrating their data to COINS, and implementation is expected to be complete by the end of Summer 2006. During the transition period the quality of some data may be affected, which may lead to larger than usual revisions of the data published in this spending update of PESA 2006.

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Table 1 Total Managed Expenditure by budgetary category, 2001-02 to 2005-06

£ million
  National Statistics
 

2001-02 outturn

 2002-03 outturn 2003-04 outturn 2004-05 outturn 2005-06 outturn
Departmental Expenditure Limits
Resource Budget 210,273 228,280 243,416 257,066 276,522
Capital Budget

22,773

 26,914 30,810 33,569 36,245
Less depreciation 9,378 15,847 9,034 8,391 12,248
Total Departmental Expenditure Limits 223,668 

239,347

  265,192 282,244 300,518
Annually Managed Expenditure
Departmental AME
Social security benefits 109,185 113,850 118,080 125,275 129,912
Tax credits (1) 5,189 5,829 9,779 11,735 12,860
Net public service pensions (2) 3,913 4,150 1,796 609 3,694
National Lottery 1,710 1,810 1,910 1,800 1,844
BBC Domestic Services

2,649

2,958

2,784

2,927

3,054
Student Loans for England and Wales

1,886

1,997

2,042

2,015

2,206
Non-cash items 22,234 27,414 26,501 26,154 31,378
Other departmental expenditure 3,589 2,919 3,159 2,362 2,351
Total Departmental AME 150,355 160,925 166,052 172,876 187,300
Other AME
Net expenditures to the EC (3) -690 2,782 3,448 4,907 4,435
Locally financed expenditure (4) 21,121 19,528 21,477 24,252 26,566
Central government gross debt interest 22,095 20,947 22,324 23,986 25,909
Public corporations’ own-financed capital expenditure 3,625 4,095 2,201 2,061 4,931
Total Other AME 46,151 47,349 49,450 55,205 61,841
Total AME before accounting adjustments  196,506  208,274 215,502 228,081 249,141
Accounting adjustments(5) -29,618 -25,994 -22,666 -17,691 -24,765
Total Annually Managed Expenditure 166,888 182,280 192,836 210,390 224,376
Total Managed Expenditure 390,556 421,627 458,028 492,634 524,894
of which:
Current expenditure 366,089 394,459 427,504 456,709 482,640

Public Sector Gross Investment

24,467

27,168

30,524

35,925

42,254
less depreciation 13,197 14,070 14,579 15,420 16,514
Net Investment 11,270 13,098 15,945 20,505 25,740

(1)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.

(2)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.

(3) Net expenditure transfers to the EU are comprised of the GNI contribution to the EU less the UK's abatement.  Estimates (in £ billion) are given below for Net payments to EC institutions, as defined in annex D of Public Expenditure Statistical Analyses (PESA), and the UK's net contribution to the EC budget, which is defined at footnote (3) to table 1.1 of PESA:    

2004-05 2004-05

Net Payments to EC Institutions

3.2

3.9

UK's net contribution to the EU

 3.9 4.5

4) LA Self-Financed Expenditure (LASFE) numbers have not been updated since PESA 2006 (cm 6811). Significant changes have been made recently to National Accounts and there has not been time to feed all these changes into the detailed calculation of LASFE for PEOWP. LASFE will be updated as normal in the next National Statistics release at PBR.

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Table 2 Resource Departmental Expenditure Limits, by departmental grouping, 2001-02 to 2005-06

£ million
  National Statistics
  2001-02 outturn 2002-03 outturn 2003-04 outturn 2004-05 outturn 2005-06 outturn
Resource DEL
Education and Skills 16,695 20,197 22,086 22,769 24,786
Health 52,907 57,212 63,706 69,206 76,547
of which: NHS (England) 52,070 55,501 61,965 66,943 74,328
Transport 2,872 3,877 5,009 5,256 5,616
Communities and Local Government 1,200 1,591 3,319 3,529 3,343
Local Government 36,921 37,396 40,915 43,316 46,244
Home Office 10,401 10,933 11,694 11,991 12,731
Constitutional Affairs 3,135 3,490 3,371 3,288 3,735
Law Officers' Departments 465 514 576 646 665
Defence 32,341 36,451 31,330 31,287 32,452
Foreign and Commonwealth Office 1,404 1,535 1,548 1,715 1,876
International Development 3,049 3,418 3,705 3,892 4,488
Trade and Industry 4,820 3,445 3,609 4,274 5,253
Environment, Food and Rural Affairs 2,338 2,355 2,415 2,776 2,745
Culture, Media and Sport 1,004 1,210 1,223 1,317 1,447
Work and Pensions 6,050 6,841 7,630 7,740 7,874
Scotland 15,018 16,079 18,320 19,335 20,793
Wales 7,827 8,824 9,576 10,296 10,845
Northern Ireland Executive 5,144 5,764 5,971 6,301 6,695
Northern Ireland Office 1,073 1,096 1,044 1,150 1,182
Chancellor's Departments 3,994 4,344 4,517 4,906 5,071
Cabinet Office 1,614 1,707 1,854 2,075 2,134
Total Resource DEL 210,273 228,280 243,416 257,066 276,522

(1) Update of PESA 2006 Table 1.5 Resource DEL part

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Table 3(1) Near-cash elements of Resource Departmental Expenditure Limits, by departmental grouping, 2001-02 to 2005-06

£ million
  National Statistics
  2001-02 outturn 2002-03 outturn 2003-04 outturn 2004-05 outturn 2005-06 outturn
Capital DEL
Education and Skills 15,987 19,363 21,095 21,938 23,771
Health 49,133 54,578 61,300 68,934 74,315
of which: NHS (England) 48,298 52,878 59,569 66,688 72,117
Transport 2,950 3,449 4,564 4,634 4,882
Communities and Local Government 1,221 1,594 3,396 3,519 3,415
Local Government 36,921 37,359 40,914 43,314 46,244
Home Office 9,753 10,439 11,347 11,531 12,265
Constitutional Affairs 2,864 3,304 3,488 3,990 3,738
Law Officers' Departments 428 510 571 635 663
Defence 18,296 19,574 21,174 21,620 22,351
Foreign and Commonwealth Office 1,260 1,330 1,402 1,599 1,732
International Development 3,027 3,260 3,682 3,812 4,421
Trade and Industry 3,320 3,296 3,531 3,917 4,872
Environment, Food and Rural Affairs 2,594 2,087 2,202 2,466 2,357
Culture, Media and Sport 871 1,078 1,084 1,190 1,293
Work and Pensions 5,991 6,673 7,517 7,652 7,561
Scotland 14,375 15,561 17,884 18,505 20,036
Wales 7,558 8,484 9,380 10,035 10,566
Northern Ireland Executive 5,058 5,680 5,805 6,130 6,502
Northern Ireland Office 1,177 927 951 932 985
Chancellor's Departments 3,792 3,949 4,351 4,590 4,774
Cabinet Office 1,270 1,359 1,418 1,650 1,706
Total near-cash resource DEL 187,844 203,890 227,053 242,592 258,389

(1) Update of PESA 2006 Table 1.7 near-cash Resource Budget part

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Table 4(1) Capital Departmental Expenditure Limits, by departmental grouping, 1999-00 to 2004-05

£ million
  National Statistics
  2001-02 outturn 2002-03 outturn 2003-04 outturn 2004-05 outturn 2005-06 outturn
Capital DEL
Education and Skills 2,643 3,429 4,219 4,903 5,705
Health 1,814 2,145 2,689 2,690 2,253
of which: NHS (England) 1,719 2,073 2,602 2,606 2,164
Transport 3,858 5,238 5,720 5,979 6,499
Communities and Local Government 2,495 3,052 4,713 5,127 5,767
Local Government 84 202 214 257 316
Home Office 696 926 940 1,059 1,071
Constitutional Affairs 85 88 131 194 138
Law Officers' Departments 23 8 11 11 9
Defence 5,836 6,149 6,073 6,754 6,676
Foreign and Commonwealth Office 77 102 87 112 96
International Development 38 31 42 32 23
Trade and Industry 595 702 977 792 1,209
Environment, Food and Rural Affairs 452 432 567 489 854
Culture, Media and Sport 33 44 123 153 130
Work and Pensions 167 270 195 298 386
Scotland 1,892 1,928 1,683 2,171 2,332
Wales 920 1,004 985 1,008 1,221
Northern Ireland Executive 604 665 618 799 847
Northern Ireland Office 41 53 50 71 59
Chancellor's Departments 205 262 253 428 400
Cabinet Office 214 181 521 240 244
Total Capital DEL 22,773 26,914 30,810 33,569 36,245

(1) Update of PESA 2006 Table 1.10 Capital DEL part

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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.

Budgetary data (Tables 1, 2.3 and 4)
2. Presentation of public expenditure in tables 1, 2,3 and 4 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 public sector capital expenditure.

Methodology and definitions
3. 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 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 20th July 2006.

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Data Sources
4. Most data published in the National Statistics release are taken directly from the Treasury’s COINS database, apart from a few cases where the department has provided more up to date information directly to HMT.   Total Managed Expenditure (TME) and its component parts are sourced from the Office of National Statistics.

A National Statistics publication
5. Most public expenditure outturn data published by H M 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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Enquiries
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E-mail info@statistics.gov.uk
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You can also find National Statistics on the National Statistics website, www.statistics.gov.uk.

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