Local government 2019-2020 provisional outturn and 2020-2021 budget estimates – capital expenditure

Executive Summary

2019-20 Provisional Outturn

• Provisional outturn for capital expenditure in 2019-20 is £3,798 million – an increase of 32 per cent, or £913 million, on 2018-19.
• Housing Revenue Account (HRA) and Education are the services with highest provisional capital expenditure, accounting for £940 million and £701 million in 2019-20 respectively.
• Provisional outturn figures show that the majority of local authorities’ 2019-20 capital expenditure will be financed from Scottish Government Grants (34 per cent); borrowing (31 per cent); and credit arrangements (18 per cent).
• Total External Debt is 96 per cent of the Capital Financing Requirement (CFR) which means local authorities remained under-borrowed in 2019-20.

2020-21 Budget Estimates

• Budgeted capital expenditure for 2020-21 is £4,310 million – an increase of two per cent, or £98 million, on the 2019-20 budget.
• HRA and Education are the services budgeted to have the highest capital expenditure in 2020-21, accounting for £1,184 million and £922 million of budgeted capital expenditure respectively.
• Local authorities have budgeted for the majority of their 2020-21 capital expenditure to be financed from borrowing (52 per cent) and Scottish Government Grants (27 per cent).
• Total External Debt is budgeted to be 96 per cent of CFR which means local authorities expect to remain under-borrowed in 2020-21.