The Chief Statistician has released figures on local government
finance in 2022-23. These figures provide a comprehensive
overview of the financial activity of local government, including
revenue expenditure and income; capital expenditure and
financing; reserves; debt; and pensions.
Revenue expenditure is the cost of delivering services each year.
Local authorities net revenue expenditure in 2022-23 was £12,951
million. Education and Social Work were the services with highest
net revenue expenditure, accounting for £6,472 million and £4,291
million respectively.
Capital expenditure is expenditure that creates the buildings and
infrastructure necessary to provide services, such as schools and
roads. Local authorities incurred £3,786 million of capital
expenditure in 2022-23. This was predominantly financed by grants
and contributions of £1,617 million and borrowing of £1,533
million.
Usable reserves are local authorities’ surplus income from
previous years which can be used to finance future revenue or
capital expenditure. At 31 March 2023, local authorities held
£4,532 million of usable reserves.
When local authorities borrow money or use credit arrangements to
finance capital expenditure, a debt is created which has to be
repaid from future revenues. In 2022-23, local authorities made
debt repayments of £53 million and at 31 March 2023 they had a
total debt of £21,801 million.
Background
Scottish Local Government
Finance Statistics (SLGFS) 2022-23 is based on final, audited
figures provided by local authorities (where available, or draft
accounts if these have not yet been audited).
Further information on Local Government Finance statistics
publications and data collections can
be found on the Scottish Government website.
These statistics have been produced in accordance with the Code of Practice for
Statistics.
