This indicator is the reported local authority income from central government grants as a percentage of Revenue Expenditure, using the relevant lines from Revenue Summary returns.
How the figure is calculated:
For each major class of local authority (e.g. metropolitan districts), total amount of grant received by local authorities from central government divided by total local authority Revenue Expenditure, multiplied by 100%.
E.g. for metropolitan districts for 2012-13: government grants (£15.012bn) divided by Revenue Expenditure (£19.045bn), multiplied by 100, equals 78.8%. These statistics can be calculated using the published local level detail relating to the Revenue Outturn Summary form 2012-13.
Revenue expenditure is used to describe expenditure funded from Aggregate External Finance (AEF), council tax and authorities reserves. It is equal to new current expenditure plus capital financing costs and a few minor adjustments, but excluding expenditure funded by grants outside AEF and income from interest receipts. Revenue expenditure is a familiar and widely used measure of expenditure; it is used particularly in the context of funding local government expenditure.
Government grants include 'Revenue Grants inside Aggregate External Finance', 'Local Services Support Grant', 'General GLA Grant' and 'Formula Grant', which includes 'Revenue Support Grant', 'Police Grant' and 'Redistributed non-domestic rates'.
Why is this indicator in the business plan?
It is a demonstration of the proportion of local government expenditure accounted for by grants from central government (from DCLG and other departments).
How often is it updated?
Annually
Where does the data come from?
Revenue Summary returns to DCLG. Published figures are available here.
What area does the headline figure cover?
England
Are further breakdowns of the data available?
By local authority
What does a change in this indicator show?
A larger percentage shows that local authorities receive a larger proportion of their revenue expenditure through central government grants, and a lower percentage implies that local authorities receive a smaller proportion of their revenue expenditure through central government grants.
Time Lag
Provisional figures published within five months of end of the reporting period, with final figures being published within eight months of end of the reporting period.
Next available update
September 2015.
Type of Data
National Statistics
Robustness and data limitations
The expenditure figures are subjected to rigorous pre-defined validation tests both within the relevant form itself, while the form is being completed by the authority, and also as the data are received and stored.
Links to Further Information
https://www.gov.uk/government/organisations/department-for-communities-and-local-government/series/local-authority-revenue-expenditure-and-financing
Contact Details
CorporatePerformance@communities.gsi.gov.uk