Government Expenditure and Revenue Scotland: 2017-2018

Chapter 3: Public Sector Expenditure

Total Public Sector Expenditure: Scotland 2017-18

Introduction

This chapter provides detailed estimates of public sector expenditure for Scotland. Expenditure is shown by type of spend, using a presentation based on the UN’s Classification of the Functions of Government ( COFOG). Further information is provided in the Glossary in Annex D. Current and capital expenditure are shown separately.

The primary data sources used to estimate Scottish public sector expenditure in GERS are Scottish Government spending reported on the UK Government’s public spending system, OSCAR, and HM Treasury’s Public Expenditure Statistical Analyses ( PESA) ^[17] and the supporting Country and Regional Analysis ( CRA). ^[18]

Spending by the Scottish Government is provided directly by the Scottish Government Directorate for Financial Management. Scottish Local Government spending in all years is taken from HM Treasury’s PESA publication. Spending by other UK government departments spending is based on PESA for 2017-18 and on the CRA for earlier years. Further information on the methodology is set out in the expenditure methodology paper available at the link below.

http://www.gov.scot/Topics/Statistics/Browse/Economy/GERS/Methodology.

GERS also includes some transactions between Scotland and the EU. These can be reported in a number of different ways, and are discussed in more detail later in the chapter.

GERS expenditure figures are presented on a National Accounts basis, an international reporting standard used by governments. This requires a number of accounting adjustments to be included in total expenditure. These are primarily symmetric adjustments that also form part of revenue, and therefore have little impact on the net fiscal balance. Further information is set out in Annex A.

Public Sector Expenditure

Total public sector expenditure for Scotland in 2017-18 is estimated to be £73.4 billion, an increase of 2.9% from 2016-17, compared to growth of 2.3% for the UK as a whole. The growth in UK spending in 2017-18 is reduced by the reclassification of English housing associations into the private sector from November 2017. Excluding this change, UK spending grew by 2.5%. Scotland’s public sector expenditure in 2017-18 was equivalent to 9.3% of total UK public sector expenditure. This is shown by spending category in Table 3.1.

Table 3.1: Total Expenditure: Scotland 2017-18

	Scotland
	£ million	% of total expenditure
General public services
Public and common services	1,536	2.1%
International services	881	1.2%
Public sector debt interest	3,666	5.0%
Defence	3,182	4.3%
Public order and safety	2,838	3.9%
Economic affairs
Enterprise and economic development	1,285	1.8%
Science and technology	485	0.7%
Employment policies	239	0.3%
Agriculture, forestry and fisheries	918	1.3%
Transport	3,842	5.2%
Environment protection	1,241	1.7%
Housing and community amenities	1,911	2.6%
Health	12,830	17.5%
Recreation, culture and religion	1,400	1.9%
Education and training	8,390	11.4%
Social protection	23,556	32.1%
EU transactions	145	0.2%
Accounting adjustments	5,052	6.9%
Total Expenditure	73,398	100%

Table 3.2 below shows growth in current and capital spend in Scotland by organization in 2017-18, compared to the UK. Spending increased faster in Scotland than the UK as a whole in 2017-18, primarily due to higher growth in local government current spending and public corporation capital expenditure. The difference in public corporation capital spend is due to the reclassification of English housing associations, which reduces the UK total in 2017-18. Excluding housing associations, UK public corporation capital expenditure grew by 8.4%.

Table 3.2: Expenditure growth: 2016-17 to 2017-18 (£ million)

	Scotland		Growth	UK growth
	2016-17	2017-18
Current expenditure	62,856	64,633	2.8%	2.2%
Scottish Government	24,082	24,500	1.7%	1.7%
Local Government	12,075	12,241	1.4%	-0.5%
Public Corporations	-	-	-	-
Other UK Government bodies	26,700	27,892	4.5%	3.0%
Capital expenditure	8,498	8,764	3.1%	3.0%
Scottish Government	2,047	2,261	10.4%	10.4%
Local Government	2,215	2,208	-0.3%	4.0%
Public Corporations	1,492	1,637	9.7%	-4.1%
Other UK Government bodies	2,743	2,658	-3.1%	5.2%
Total expenditure	71,354	73,398	2.9%	2.3%
Scottish Government	26,129	26,761	2.4%	2.4%
Local Government	14,290	14,449	1.1%	0.0%
Public Corporations	1,492	1,637	9.7%	-4.1%
Other UK Government bodies	29,443	30,550	3.8%	3.1%

Notes:

1. Public corporation line for Scotland shows spending by Scottish public corporations only. UK figure shows spending by all public corporations

2. Scottish public corporations have no current expenditure as this is netted off against their income to provide their gross operating surplus in the revenue calculations. Within the CRA, interest expenditure by public corporations is recorded as spending by HM Treasury.

3. Spend by Other UK Government departments for Scotland and the UK are not directly comparable, as spending for the UK as a whole includes spending on functions which are devolved to the Scottish Government.

Table 3.3 shows the split of total expenditure between current and capital for Scotland. The capital spending share increased in 2016-17. This reflected a number of factors, including increased local authority capital spending, increased Scottish Government capital spending in part due to the use of new capital borrowing powers, and increased spending by housing associations. It remained at this level in 2017-18.

Table 3.3: Current and Capital Expenditure (% of Total Expenditure): Scotland

	per cent
	2013-14	2014-15	2015-16	2016-17	2017-18
Current	89.5%	89.6%	89.7%	88.1%	88.1%
Capital	10.5%	10.4%	10.3%	11.9%	11.9%

Table 3.4 below shows estimates of Scottish and UK public sector expenditure as a share of GDP. This provides an illustration of the relative size of public spending between countries and over time. It is not an estimate of the contribution of public spending to the economy as much of this spending consists of transfers from government to individuals and businesses. Excluding North Sea GDP, public sector spending as a share of GDP has been around 47% in Scotland since 2014-15, whilst it has declined in the UK. This divergence in part reflects the higher spending growth in Scotland, but primarily reflects weaker GDP growth in Scotland. If Scottish GDP had grown in line with UK GDP since 2014-15, spending as a share of GDP excluding the North Sea would have fallen to 45.1% in 2017-18.

Including a geographical share of North Sea GDP, public spending as a share of GDP has been increasing since 2013-14 in Scotland, although it fell in 2017-18. This reflects the fall in North Sea GDP since 2013-14, and its recovery in the latest year.

Table 3.4: Total Managed Expenditure as a Share of GDP

	per cent of GDP
	2013-14	2014-15	2015-16	2016-17	2017-18
Scottish TME as a Share of GDP:
Excluding North Sea GDP	48.1%	46.8%	47.1%	47.1%	46.9%
Including population share of North Sea GDP	47.5%	46.3%	46.6%	46.6%	46.4%
Including geographical share of North Sea GDP	42.7%	42.8%	43.3%	43.6%	43.1%
UK TME as a share of GDP:
100% of North Sea GDP	41.2%	40.5%	39.6%	38.8%	38.4%

Table 3.5 shows total public sector expenditure per person for Scotland and the UK. Since 2013-14, spending per person in Scotland has been between 10.6% (in 2014-15) and 13.2% (in 2017-18) higher than the UK average. The gap between Scottish and UK spending per person has increased since 2014-15. In part, this will reflect the new Scottish Government capital borrowing powers which began in 2015-16. Slightly less than one percentage point of this difference is due to water and sewerage services being provided by the public sector in Scotland, and therefore included in Scottish expenditure, whilst in England and Wales they are operated by the private sector and therefore excluded from UK expenditure. Tables 3.6 and 3.7 show current, capital, and total expenditure for Scotland and the UK respectively.

Table 3.5: Total Expenditure Per Person

	£ per person
	2013-14	2014-15	2015-16	2016-17	2017-18
Scotland	12,708	12,821	12,914	13,190	13,530
UK	11,425	11,594	11,599	11,742	11,954
Difference (Scotland minus UK)	1,283	1,226	1,316	1,448	1,576
Difference between Scottish and UK	11.2%	10.6%	11.3%	12.3%	13.2%

Box 3.1: Social protection spending in Scotland

Social protection spending is the largest single spending line in GERS, and covers a range of different spend types.

The largest spending element within social protection is expenditure on the state pension by the Department for Work and Pensions ( DWP). This is followed by DWP’s spending on other social security such as disability and incapacity related benefits, income support, jobseekers allowance, and housing benefit. Tax credits and child benefit are part of HMRC spending, which also includes universal credit. Scottish Government social security spend includes the Scottish Welfare Fund, Council Tax Reduction Scheme, and Scottish Government expenditure on Discretionary Housing Payments, all of which are administered by Local Authorities.

Some UK social security expenditure, mostly associated with the state pension, is paid to non- UK residents. Scotland is allocated a population share of this expenditure in GERS.

Social protection spending for Scotland (£ million)
	2013-14	2014-15	2015-16	2016-17	2017-18
Social security spending in Scotland
State pension	7,051	7,324	7,560	7,744	7,922
Housing benefit	1,770	1,776	1,772	1,733	1,671
Other DWP social security	5,624	5,693	5,795	5,835	6,010
HMRC child benefit and tax credits and universal credit	2,960	2,913	2,867	2,755	2,872
Scottish Government social security	436	431	410	401	392
Social security spending in Scotland	17,842	18,138	18,405	18,468	18,867
Share of benefit spending outside UK and corporate spend	456	558	604	614	643
Other social protection
Net public sector pensions	875	1009	979	885	928
Social care for the elderly	2,263	2,296	2,292	2,268	2,375
Other	900	917	1,046	882	742
Total social protection	22,336	22,917	23,325	23,117	23,556

Other social protection spending consists primarily of Local Authority expenditure on social care to families and children.

A more detailed breakdown of social security spending is published by DWP, available at the link below.

https://www.gov.uk/government/collections/benefit-expenditure-tables

Spending by different parts of the Public Sector

Table 3.8 below provides a breakdown of Scottish expenditure by the Scottish Government, Scottish local government and public corporations, and other UK government bodies.

Table 3.6: Total Expenditure: Scotland 2013-14 to 2017-18

	£ million
	Current					Capital					Total
	2013-14	2014-15	2015-16	2016-17	2017-18	2013-14	2014-15	2015-16	2016-17	2017-18	2013-14	2014-15	2015-16	2016-17	2017-18
General public services
Public and common services	1,251	1,277	1,302	1,254	1,202	234	228	249	241	335	1,485	1,505	1,551	1,495	1,536
International services	762	692	698	737	778	52	177	164	158	102	814	869	862	894	881
Public sector debt interest	3,333	3,098	3,136	3,305	3,666	0	0	0	0		3,333	3,098	3,136	3,305	3,666
Defence	2,290	2,271	2,294	2,296	2,338	734	766	729	762	844	3,024	3,037	3,023	3,057	3,182
Public order and safety	2,409	2,707	2,746	2,655	2,716	137	120	72	75	122	2,545	2,827	2,818	2,729	2,838
Economic affairs
Enterprise and economic development	877	834	901	860	920	193	187	140	338	365	1,070	1,021	1,041	1,198	1,285
Science and technology	26	50	102	76	88	369	370	390	356	397	395	420	492	432	485
Employment policies	321	253	215	213	231	6	3	2	5	9	327	256	217	218	239
Agriculture, forestry and fisheries	790	733	689	813	804	167	196	134	124	114	957	928	823	938	918
Transport	1,568	1,340	1,651	1,647	1,678	1,342	1,454	1,467	1,705	2,164	2,910	2,794	3,118	3,352	3,842
Environment protection	917	941	934	874	901	366	308	312	330	340	1,283	1,248	1,246	1,204	1,241
Housing and community amenities	137	143	174	132	131	1,408	1,424	1,407	1,471	1,780	1,544	1,567	1,581	1,603	1,911
Health	10,868	11,144	11,586	12,040	12,331	637	489	569	626	499	11,504	11,633	12,155	12,665	12,830
Recreation, culture and religion	1,210	1,368	1,125	1,079	1,126	249	190	237	326	274	1,459	1,558	1,362	1,405	1,400
Education and training	6,923	6,980	7,108	7,299	7,510	636	634	732	972	880	7,558	7,614	7,840	8,271	8,390
Social protection	22,308	22,883	23,257	23,046	23,512	28	34	68	71	44	22,336	22,917	23,325	23,117	23,556
EU Transactions	219	290	315	8	145	0	0	0	0	0	219	290	315	8	145
Accounting adjustments	4,428	4,520	4,105	4,522	4,558	572	538	481	939	494	5,000	5,058	4,586	5,461	5,052
Total	60,637	61,524	62,340	62,856	64,633	7,130	7,117	7,152	8,498	8,764	67,767	68,640	69,492	71,354	73,398

Table 3.7: Total Expenditure: UK 2013-14 to 2017-18

	£ million
	Current					Capital					Total
	2013-14	2014-15	2015-16	2016-17	2017-18	2013-14	2014-15	2015-16	2016-17	2017-18	2013-14	2014-15	2015-16	2016-17	2017-18
General public services
Public and common services	9,372	9,703	9,851	9,709	10,105	1,809	1,752	1,358	2,755	3,011	11,181	11,455	11,208	12,464	13,115
International services	9,174	8,362	8,457	8,947	9,453	621	2,133	1,984	1,918	1,245	9,795	10,495	10,441	10,865	10,698
Public sector debt interest	40,108	37,418	38,006	40,153	44,528	0	0	0	0		40,108	37,418	38,006	40,153	44,528
Defence	27,572	27,448	27,796	27,890	28,401	8,834	9,249	8,832	9,250	10,252	36,406	36,697	36,627	37,140	38,653
Public order and safety	28,345	29,235	28,928	28,945	29,531	1,258	1,252	1,279	1,116	2,033	29,603	30,487	30,207	30,061	31,564
Economic affairs
Enterprise and economic development	5,544	5,409	6,428	6,297	6,826	1,178	862	679	1,700	1,607	6,722	6,271	7,107	7,997	8,433
Science and technology	363	496	875	978	1,126	3,831	3,976	3,944	3,510	3,920	4,194	4,472	4,819	4,488	5,047
Employment policies	3,718	2,806	2,363	2,340	2,509	77	32	22	60	105	3,796	2,837	2,385	2,399	2,613
Agriculture, forestry and fisheries	4,966	4,692	4,090	4,769	4,770	413	520	399	444	487	5,378	5,213	4,489	5,213	5,258
Transport	7,666	6,618	9,765	9,868	10,728	13,129	15,172	17,924	18,501	20,459	20,794	21,790	27,689	28,368	31,187
Environment protection	7,637	7,839	7,938	7,264	7,390	3,572	3,750	3,672	3,779	4,049	11,209	11,589	11,609	11,043	11,439
Housing and community amenities	3,137	3,062	2,986	2,943	3,013	6,719	7,215	6,844	7,352	9,065	9,856	10,277	9,830	10,295	12,078
Health	121,968	127,651	132,663	136,978	139,620	7,421	6,402	5,836	5,611	6,192	129,389	134,053	138,499	142,589	145,812
Recreation, culture and religion	9,753	10,427	9,327	9,381	9,399	1,854	2,022	2,040	2,225	2,391	11,607	12,449	11,367	11,606	11,791
Education and training	75,859	75,604	75,595	77,319	78,167	8,821	9,450	9,319	7,587	9,648	84,680	85,055	84,914	84,905	87,815
Social protection	254,228	261,150	264,506	264,890	267,748	-283	-112	315	451	492	253,945	261,038	264,821	265,341	268,240
EU transactions	7,210	6,225	7,671	4,722	5,364	0	0	0	0	0	7,210	6,225	7,671	4,722	5,364
Accounting adjustments	48,539	50,669	45,370	49,335	49,114	9,401	11,955	9,708	12,995	6,712	57,940	62,624	55,078	62,330	55,826
Total	665,159	674,817	682,615	692,727	707,792	68,654	75,628	74,152	79,254	81,668	733,813	750,445	756,767	771,981	789,460

Table 3.8: Total Expenditure: Scottish Government, Local Authorities, Public Corporations, and Other UK Government: Scotland 2013-14 to 2017-18

	£ million
	Scottish Government, LAs and Public Corporations					Other UK Government					Total
	2013-14	2014-15	2015-16	2016-17	2017-18	2013-14	2014-15	2015-16	2016-17	2017-18	2013-14	2014-15	2015-16	2016-17	2017-18
General public services
Public and common services	1,021	1,014	1,048	1,002	1,016	464	491	503	493	520	1,485	1,505	1,551	1,495	1,536
International services	0	0	0	0	1	814	869	862	894	880	814	869	862	894	881
Public sector debt interest	0	0	0	0	0	3,333	3,098	3,136	3,305	3,666	3,333	3,098	3,136	3,305	3,666
Defence	3	3	4	4	3	3,021	3,034	3,019	3,053	3,179	3,024	3,037	3,023	3,057	3,182
Public order and safety	2,307	2,567	2,592	2,515	2,618	238	260	226	214	220	2,545	2,827	2,818	2,729	2,838
Economic affairs
Enterprise and econ development	782	743	632	831	855	288	278	409	367	430	1,070	1,021	1,041	1,198	1,285
Science and technology	5	5	2	3	3	391	416	490	429	483	395	420	492	432	485
Employment policies	0	0	0	0	0	327	256	217	218	239	327	256	217	218	239
Agriculture, forestry and fisheries	948	918	815	927	908	9	11	8	11	11	957	928	823	938	918
Transport	2,750	2,623	2,318	2,351	2,554	161	170	801	1,001	1,288	2,910	2,794	3,118	3,352	3,842
Environment protection	1,012	950	949	938	958	270	299	297	266	283	1,283	1,248	1,246	1,204	1,241
Housing and community amenities	1,529	1,548	1,567	1,583	1,893	15	20	14	20	18	1,544	1,567	1,581	1,603	1,911
Health	11,354	11,483	12,002	12,508	12,677	151	149	152	158	153	11,504	11,633	12,155	12,665	12,830
Recreation, culture and religion	1,066	1,142	999	974	949	393	416	363	431	451	1,459	1,558	1,362	1,405	1,400
Education and training	7,541	7,587	7,814	8,247	8,371	17	27	26	24	19	7,558	7,614	7,840	8,271	8,390
Social protection	5,484	5,662	5,734	5,420	5,357	16,853	17,255	17,591	17,697	18,199	22,336	22,917	23,325	23,117	23,556
EU transactions	0	0	0	0	0	219	290	315	8	145	219	290	315	8	145
Accounting adjustments	4,277	4,450	4,150	4,610	4,686	723	608	436	851	366	5,000	5,058	4,586	5,461	5,052
Total	40,079	40,695	40,627	41,911	42,848	27,688	27,946	28,865	29,443	30,550	67,767	68,640	69,492	71,354	73,398

Scotland’s Notional Contributions to the European Union Budget

As a member of the European Union ( EU) the UK contributes to the EU budget and receives funding from the EU via a number of programmes.

Scotland does not contribute directly to the EU budget. In GERS, Scotland is assigned a share of the UK contribution. In contrast, Scotland receives funding directly from the EU, through the Common Agricultural Policy, European Structural Funds, and European Regional Development Funding. Actual amounts are used for these items.

The EU Transactions lines in the tables above are produced on a National Accounts basis, and exclude traditional own resource payments. These are payments collected by the UK on behalf of the EU, and therefore are excluded from the UK Public Sector Finances. However, they are normally included when reporting on the UK’s net contribution to EU budgets. The tables in this box show net payments to the EU including these contributions.

Although contributions to the EU are made by the public sector, funding from the EU is received by both public and non-public sector bodies. Both the EU Transactions line in the above tables and the figures below report only on transactions with the EU by the public sector. EU payments to Higher Education Institutions, which are not part of the public sector, are discussed further below.

Funding the EU Budget

There are three key sources of funding for the EU, which come from each member state: ^[19]

• Traditional own resource ( TOR ) - Agriculture duties and customs duties levied on agriculture and non-agriculture products from outside the EU
• VAT based own resource – Calculated as a percentage of countries’ VAT tax base.
• Gross National Income ( GNI) based own resource – Calculated as a percentage of countries’ GNI. This is the EU’s single largest source of revenue.

Since 1985, the UK has received a rebate on its contribution, broadly equal to 66% of its net contribution (in the previous year). Scotland is apportioned a population share of the rebate.

Net Contribution to the EU

Two measures are generally used to illustrate the UK’s net contribution to the EU:

• The primary measure is the UK’s net contribution to the EU budget – this is calculated as the difference between the UK’s gross contribution to the EU budget (less the rebate) and public sector EU receipts.
• A secondary measure is the UK’s net payment to EU institutions – this is equal to the UK’s net contribution to the EU Budget less its share of the EU’s external assistance aid budget.

The table below sets out these transactions for Scotland and the UK. The Scottish presentation in this edition of GERS has been simplified to present a single figure based on estimates of Scotland’s Gross National Income. ^[20] Further information is provided in the expenditure methodology note.

Table 3.9: Transactions with the institutions of the EU, 2013-14 to 2017-18 (£ million)

	Scotland					UK
	2013-14	2014-15	2015-16	2016-17	2017-18	2013-14	2014-15	2015-16	2016-17	2017-18
GNI based contribution	1,187	1,164	1,039	927	945	13,845	14,154	12,570	11,440	11,761
UK abatement	-343	-398	-336	-392	-374	-4,130	-4,811	-4,068	-4,757	-4,547
VAT-based contribution to the EU	180	192	227	204	244	2,163	2,316	2,751	2,477	2,974
Expenditure transfers to the EU	1,024	957	930	739	816	11,879	11,658	11,253	9,160	10,188
Receipts to cover collection costs of TOR	-61	-61	-64	-29	-57	-733	-743	-771	-357	-698
TOR	244	249	254	277	280	2,933	3,006	3,085	3,366	3,413
Gross contribution to the EU budget	1,207	1,144	1,121	987	1,039	14,079	13,921	13,567	12,169	12,903
Public sector EU receipts	-737	-606	-551	-702	-613	-3,856	-4,690	-2,811	-4,081	-4,126
Net contributions to the EU budget	470	538	570	285	426	10,223	9,231	10,756	8,088	8,777
less other attributed costs 1	-7	-	-	-	-	79	-	-	-	-
Net payments to EU institutions	463	538	570	285	426	10,143	9,231	10,756	8,088	8,777
EU transactions (net payments to EU institutions less TOR)	219	290	315	8	145	7,210	6,225	7,671	4,722	5,364

¹ UK contribution to EU aid to non- EU states.

Box 3.2: EU Payments to Higher Education Institutions

The figures above covered the transactions that the Scottish and UK public sector have with the EU. However, the EU also makes payments to bodies outside the public sector, such as Higher Education Institutions ( HEIs), which are considered private sector not-for-profit institutions. The Higher Education Statistics Agency ( HESA) produces statistics on these payments. These payments are not included in the tables shown above as they are not transactions with the public sector and are therefore out of the scope of public sector finances.

Payments to HEIs from the EU include:

• Payments from EU government bodies
• Payments from EU-based charities through an open competitive process
• Payments from EU industry, commerce and public corporations
• Payments from other EU bodies

To illustrate the size of these payments, the table below shows research grants and contracts income from the EU to HEIs for Scotland and the UK for academic years 2012-13 to 2016-17, which is the latest year for which figures are available. This spending is outside the public sector, and therefore has no impact on the figures reported in GERS.

EU Payments to Higher Education Institutions, Academic Year 2012-13 to 2016-17
	£ million
	2012-13	2013-14	2014-15	2015-16	2016-17
Scotland	81	89	94	97	105
UK	690	789	836	841	877

Note: The academic year runs from 1 August to 31 July

Box 3.3: Private Finance Initiative and Non-Profit Distributing Financing support for Public Private Partnerships ( PPPs)

This box gives an introduction to Public Private Partnerships ( PPPs) and the funding models that have been used in Scotland. It also breaks down unitary charge payments by scheme type, by type of procuring authority and by the sector of the project. This analysis uses sources of publicly available data, all brought together into an accompanying spreadsheet. The spreadsheet is available from the GERS website: http://www.gov.scot/Topics/Statistics/Browse/Economy/GERS/RelatedAreas

Introduction to PFI, PPPs, and NPD

Public Private Partnerships ( PPPs) are long-term contracts for services that include the provision of associated facilities or properties. Under the contract, the private sector is generally responsible for various roles, including designing and constructing a building or facility, and maintaining and servicing it throughout the contract term. The public sector retains accountability for the main public services. The private sector is responsible for financing the project up front and only receives payment from the public sector once construction has been completed and the services have commenced.

The Private Finance Initiative ( PFI) used to be the UK’s preferred form of PPP. In Scotland, the Non-Profit Distributing ( NPD) model has been the Scottish Government’s preferred procurement option since 2007. For more information on these schemes, and the data sources used in this box, please see the Scottish Government website: http://www.gov.scot/Topics/Government/Finance/18232/12308

Unitary Charge Payments

Payments for both PFI and NPD projects take the form of a unitary charge which is usually paid annually over the lifetime of the contract. It is worth emphasising that these payments are already fully reflected in the GERS spending figures. In addition, the table below includes Ministry of Defence projects in Scotland which are procured by and entirely funded by the Ministry of Defence. Scotland is assigned a population share of this expenditure in GERS. Unitary charge payments cover repayment of capital, interest payments, and in some cases service charge payments. Figures are shown here for the years 2013-14 to 2017-18 to be consistent with other tables in this report. The underlying spreadsheets on the GERS website have data covering the period back to 1998-99 as well as estimated payments into the 2040s. Additional information about the individual procuring authority (e.g. individual local authority and health board information) and comparisons with the UK are also provided.

Scotland: Unitary charge payments, 2013-14 to 2017-18
	£ million
	2013-14	2014-15	2015-16	2016-17	2017-18
By scheme type
Private Finance Initiative	944	979	995	998	1,024
Non-Profit Distributing models 1	55	59	72	107	224
Total Unitary Charge payments	999	1,038	1,067	1,105	1,248
By procuring authority
Further Education	2	2	9	27	35
Local Government	488	497	507	514	547
NHS	235	242	247	258	296
Other Scottish Government	109	127	136	133	191
Ministry of Defence	22	24	21	25	26
Scottish Water	143	146	146	148	154
Total Unitary Charge payments	999	1,038	1,067	1,105	1,248
By sector of project
Energy	4	5	5	5	5
Further Education	2	2	9	27	35
Health	235	242	247	258	296
IT	-	-	-	-	-
Ministry of Defence	22	24	21	25	26
Offices	3	3	3	3	3
Police	4	4	4	4	5
Prisons	46	49	49	47	47
Schools	446	454	462	468	502
Transport	78	93	104	102	159
Waste	158	162	163	165	171
Total Unitary Charge payments	999	1,038	1,067	1,105	1,248
UK Total Unitary Charge Payments	9,853	10,274	10,526	10,397	10,590
Scotland as % UK	10.1%	10.1%	10.1%	10.6%	11.8%

¹ Non-profit distributing models includes projects delivered by the hub model and projects commissioned prior to 2010. Further detail is available at: http://www.gov.scot/Topics/Government/Finance/18232/12308

Source: HM Treasury and Scottish Government figures. See the accompanying spreadsheet for full details of all sources