Information

Government Expenditure & Revenue Scotland 2014-15

Government Expenditure and Revenue Scotland (GERS) is a National Statistics publication. It estimates the contribution of revenue raised in Scotland toward the goods and services provided for the benefit of Scotland. The estimates in this publication are consistent with the UK Public Sector Finances published in January 2016.

This document is part of a collection


Chapter 3: Public Sector Expenditure

Total Public Sector Expenditure: Scotland 2014-15

Total Public Sector Expenditure: Scotland 2014-15

Introduction

This chapter provides detailed estimates of public sector expenditure for Scotland.

The primary data source used to estimate Scottish public sector expenditure is the November 2015 Country and Regional Analysis (CRA) published by HM Treasury.[15] In addition to this, data provided directly by HM Treasury is used to estimate a Scottish accounting adjustment. This adjustment is required to ensure the estimates of total public spending in GERS measure Total Managed Expenditure, the headline measure of aggregate public spending in the UK Public Sector Finances (see Annex A). For total expenditure and each expenditure component, a detailed breakdown according to current and capital is provided.

Public Sector Expenditure

Total public sector expenditure for Scotland in 2014-15 is estimated to be £68.4 billion. This is shown by spending category in Table 3.1. This was equivalent to 9.3% of comparable total UK public sector expenditure, shown in Table 3.2. Social protection, which includes spending on social security benefits, was the largest Scottish expenditure programme. It is discussed in more detail in Box 3.1.

Table 3.1: Total Expenditure: Scotland 2014-15

Scotland
£ million % of total expenditure
General public services
Public and common services 1,431 2.1%
International services 896 1.3%
Public sector debt interest 2,760 4.0%
Defence 3,019 4.4%
Public order and safety 2,803 4.1%
Economic affairs
Enterprise and economic development 982 1.4%
Science and technology 477 0.7%
Employment policies 299 0.4%
Agriculture, forestry and fisheries 897 1.3%
Transport 2,773 4.1%
Environment protection 1,307 1.9%
Housing and community amenities 1,804 2.6%
Health 11,591 17.0%
Recreation, culture and religion 1,622 2.4%
Education and training 7,691 11.2%
Social protection 22,840 33.4%
Accounting adjustments 5,184 7.6%
Total Expenditure 68,377 100%

Total public sector expenditure for Scotland is estimated to have increased from £65.7 billion in 2010-11 to £68.4 billion in 2014-15, an increase of 4.1% in nominal terms. UK public expenditure grew at the same rate over the period.

Table 3.2: Total Current and Capital Expenditure: Scotland and UK

(£ million)
Scotland UK
2010-11 2011-12 2012-13 2013-14 2014-15 2010-11 2011-12 2012-13 2013-14 2014-15
Current 58,357 58,802 59,447 60,313 61,237 635,892 643,983 652,535 663,349 670,834
Capital 7,348 7,323 8,299 7,169 7,140 72,099 63,759 69,546 63,157 66,285
Total 65,705 66,125 67,746 67,482 68,377 707,991 707,742 722,081 726,506 737,119

Table 3.3 shows the share of total expenditure between current and capital for Scotland. The capital spending share is generally around 11%, except in 2012-13 when there was a one-off increase in capital spend associated with the transfer of the Royal Mail Pension Plan.

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

(£ million)
2010-11 2011-12 2012-13 2013-14 2014-15
Current 88.8% 88.9% 87.8% 89.4% 89.6%
Capital 11.2% 11.1% 12.3% 10.6% 10.4%

The table 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.

Table 3.4: Total Managed Expenditure as a Share of GDP

(per cent of GDP)
2010-11 2011-12 2012-13 2013-14 2014-15
Scottish TME as a Share of GDP:
Excluding North Sea GDP 53.1% 51.6% 52.0% 49.9% 48.6%
Including population share of North Sea GDP 52.1% 50.7% 51.2% 49.2% 48.1%
Including geographical share of North Sea GDP 44.7% 43.6% 45.3% 44.0% 44.6%
UK TME as a share of GDP:
100% of North Sea GDP 45.0% 43.4% 43.0% 41.4% 40.3%

Table 3.5 shows estimated total public sector expenditure for Scotland and the UK per person. Since 2010-11, spending per head in Scotland has been between 10.6% and 12.4% higher than the UK average. 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, rounded to nearest £100)

2010-11 2011-12 2012-13 2013-14 2014-15
Scotland 12,500 12,500 12,700 12,700 12,800
UK 11,300 11,200 11,300 11,300 11,400
Difference (Scotland minus UK) 1,200 1,300 1,400 1,400 1,400
Relative Expenditure for Scotland (UK = 100) 110.6 111.6 112.4 112.4 112.3

Table 3.6: Total Expenditure: Scotland

£ million
Current Capital Total
2010-11 2011-12 2012-13 2013-14 2014-15 2010-11 2011-12 2012-13 2013-14 2014-15 2010-11 2011-12 2012-13 2013-14 2014-15
General public services
Public and common services 1,410 1,289 1,151 1,272 1,254 222 175 142 195 177 1,632 1,465 1,293 1,466 1,431
International services 608 616 617 786 720 62 50 46 52 177 670 666 663 838 896
Public sector debt interest 3,372 3,520 3,146 3,071 2,760 0 0 0 0 0 3,372 3,520 3,146 3,071 2,760
Defence 2,727 2,755 2,547 2,533 2,518 565 479 480 487 501 3,292 3,234 3,027 3,020 3,019
Public order and safety 2,579 2,666 2,652 2,413 2,683 261 216 204 139 120 2,840 2,883 2,857 2,552 2,803
Economic affairs
Enterprise and economic development 456 592 697 804 775 276 250 245 196 207 732 842 942 1,000 982
Science and technology 0 0 0 0 0 334 367 354 415 477 334 367 354 415 477
Employment policies 427 281 244 320 296 9 8 7 7 3 436 289 251 327 299
Agriculture, forestry and fisheries 795 826 770 795 747 152 146 152 168 150 947 972 922 962 897
Transport 1,570 1,456 1,545 1,566 1,337 1,191 1,265 1,428 1,354 1,436 2,760 2,721 2,973 2,920 2,773
Environment protection 950 922 888 909 964 269 234 298 363 343 1,219 1,156 1,186 1,271 1,307
Housing and community amenities 292 215 73 120 191 1,456 1,510 1,548 1,530 1,613 1,748 1,725 1,621 1,649 1,804
Health 10,360 10,599 10,770 10,987 11,271 591 514 569 513 320 10,951 11,113 11,339 11,501 11,591
Recreation, culture and religion 1,192 1,177 1,290 1,203 1,433 277 339 332 243 189 1,469 1,516 1,622 1,446 1,622
Education and training 7,055 6,769 6,991 6,928 7,080 601 688 656 636 610 7,656 7,457 7,647 7,563 7,691
Social protection 20,518 21,244 22,171 22,122 22,805 94 65 87 18 35 20,612 21,309 22,258 22,140 22,840
Accounting adjustments 4,046 3,874 3,896 4,485 4,403 988 1,018 1,749 853 781 5,033 4,891 5,645 5,338 5,184
Total 58,357 58,802 59,447 60,313 61,237 7,348 7,323 8,299 7,169 7,140 65,705 66,125 67,746 67,482 68,377

Table 3.7: Total Expenditure: UK 2010-11 to 2014-15

£ million
Current Capital Total
2010-11 2011-12 2012-13 2013-14 2014-15 2010-11 2011-12 2012-13 2013-14 2014-15 2010-11 2011-12 2012-13 2013-14 2014-15
General public services
Public and common services 10,959 10,127 9,752 9,607 10,399 1,658 1,123 1,276 1,389 1,332 12,617 11,250 11,028 10,996 11,731
International services 7,257 7,360 7,407 9,475 8,689 743 593 546 621 2,134 7,999 7,953 7,953 10,096 10,823
Public sector debt interest 40,227 42,065 37,746 36,999 33,328 0 0 0 0 0 40,227 42,065 37,746 36,999 33,328
Defence 32,549 32,950 30,586 30,543 30,430 6,738 5,711 5,767 5,867 6,054 39,287 38,661 36,354 36,410 36,484
Public order and safety 31,015 30,503 29,846 28,284 28,673 2,028 1,556 1,406 1,257 1,235 33,042 32,058 31,252 29,541 29,909
Economic affairs
Enterprise and economic development 2,831 3,280 3,951 4,376 3,907 2,035 1,596 942 1,153 857 4,866 4,876 4,893 5,529 4,764
Science and technology 0 0 0 0 0 3,406 3,563 3,597 4,438 4,940 3,406 3,563 3,597 4,438 4,940
Employment policies 4,603 3,170 2,803 3,584 3,123 94 83 78 76 31 4,697 3,253 2,881 3,660 3,154
Agriculture, forestry and fisheries 5,173 5,544 5,010 5,000 4,697 329 269 306 408 474 5,502 5,813 5,316 5,407 5,171
Transport 8,814 8,254 7,712 7,692 6,866 12,679 11,693 10,938 11,342 13,770 21,492 19,947 18,650 19,034 20,636
Environment protection 7,780 7,834 7,380 7,519 8,030 3,158 2,612 3,205 3,472 3,652 10,938 10,446 10,585 10,992 11,681
Housing and community amenities 3,220 2,722 3,086 2,984 3,053 10,031 7,431 6,877 6,823 7,622 13,251 10,153 9,963 9,807 10,675
Health 114,465 117,005 119,496 123,632 129,556 5,389 4,249 4,782 5,698 4,569 119,854 121,254 124,278 129,330 134,125
Recreation, culture and religion 10,256 9,660 10,691 9,648 10,162 2,719 2,819 2,006 1,770 1,830 12,974 12,479 12,698 11,418 11,992
Education and training 82,371 79,089 80,554 82,245 78,154 9,150 7,798 6,642 7,254 6,251 91,521 86,887 87,196 89,499 84,405
Social protection 229,408 239,635 250,224 251,189 258,012 1,019 596 450 -402 -107 230,427 240,231 250,674 250,787 257,905
Accounting adjustments 44,964 44,786 46,291 50,574 53,756 10,925 12,066 20,727 11,990 11,640 55,890 56,852 67,018 62,563 65,396
Total 635,892 643,983 652,535 663,349 670,834 72,099 63,759 69,546 63,157 66,285 707,991 707,742 722,081 726,506 737,119

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. This is followed by other social security benefits administered by the Department for Work and Pensions (DWP), such as jobseekers allowance and disability related benefits. Note that the measure of benefit spending in the table below does not include spending associated with the Scottish Welfare Fund, Council Tax Reduction Scheme, or elements of tax credits which are currently classed as accounting adjustments rather than social protection expenditure. If these were to be included, total benefit expenditure in Scotland in 2014-15 would be around £18.2 billion.

Some UK benefit 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)

2010-11 2011-12 2012-13 2013-14 2014-15
Benefit spending in Scotland
State pension 5,976 6,328 6,791 7,051 7,324
Other DWP benefits 5,786 5,749 5,795 5,621 5,659
HMRC child benefit and tax credits 2,744 2,825 2,926 2,831 2,766
Housing benefit 1,661 1,728 1,789 1,770 1,776
Benefit spending in Scotland 16,166 16,630 17,302 17,273 17,526
Share of benefit spending outside UK and corporate spend 490 479 518 458 545
Other social protection
Public sector pensions 452 732 866 881 961
Social care for the elderly 2,067 2,096 2,249 2,263 2,283
Other 1,438 1,372 1,323 1,265 1,525
Total social protection 20,612 21,309 22,258 22,140 22,840

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

A more detailed breakdown of social security spending is available in the detailed spending database available from the GERS website. In addition, DWP publish a high-level breakdown of their benefit spend, available at the link below. When comparing with the figures above, note that housing benefit is identified separately, as in GERS, and the CRA database, it is recorded as Local Government expenditure rather than DWP expenditure. https://www.gov.uk/government/collections/benefit-expenditure-tables

Table 3.8 below provides a breakdown of Scottish expenditure by the Scottish Government, Local Authorities and Public Corporations and Other UK Government departments. The database used to produce the table is available on the GERS website.

Table 3.8: Total Expenditure: Scotland 2010-11 to 2014-15

Scottish Government, LAs and Public Corporations Other UK Government Total
2010-11 2011-12 2012-13 2013-14 2014-15 2010-11 2011-12 2012-13 2013-14 2014-15 2010-11 2011-12 2012-13 2013-14 2014-15
General public services
Public and common services 1,149 990 856 1,018 952 483 474 437 449 479 1,632 1,465 1,293 1,466 1,431
International services 0 0 0 0 0 670 666 663 838 896 670 666 663 838 896
Public sector debt interest 0 0 0 0 0 3,372 3,520 3,146 3,071 2,760 3,372 3,520 3,146 3,071 2,760
Defence 5 3 3 3 3 3,287 3,230 3,024 3,017 3,016 3,292 3,234 3,027 3,020 3,019
Public order and safety 2,579 2,601 2,597 2,307 2,568 262 282 260 245 235 2,840 2,883 2,857 2,552 2,803
Economic affairs
Enterprise and econ development 758 773 744 784 806 -25 69 197 217 175 732 842 942 1,000 982
Science and technology 6 5 4 3 3 328 362 350 412 474 334 367 354 415 477
Employment policies 0 0 0 0 0 436 289 251 327 299 436 289 251 327 299
Agriculture, forestry and fisheries 924 961 912 948 878 23 11 11 15 18 947 972 922 962 897
Transport 2,603 2,573 2,804 2,750 2,592 157 148 169 170 181 2,760 2,721 2,973 2,920 2,773
Environment protection 990 935 943 1,013 1,016 229 221 242 259 291 1,219 1,156 1,186 1,271 1,307
Housing and community amenities 1,748 1,725 1,621 1,649 1,804 0 0 0 0 0 1,748 1,725 1,621 1,649 1,804
Health 10,789 10,916 11,184 11,354 11,442 162 197 155 147 149 10,951 11,113 11,339 11,501 11,591
Recreation, culture and religion 1,023 1,088 1,119 1,066 1,140 447 428 504 380 482 1,469 1,516 1,622 1,446 1,622
Education and training 7,630 7,434 7,628 7,549 7,663 26 23 19 14 28 7,656 7,457 7,647 7,563 7,691
Social protection 5,052 5,300 5,513 5,481 5,788 15,560 16,008 16,745 16,660 17,053 20,612 21,309 22,258 22,140 22,840
Accounting adjustments 3,532 3,741 3,558 3,729 3,706 1,502 1,151 2,087 1,609 1,478 70,823 71,247 73,384 72,839 73,494
Total 38,787 39,043 39,486 39,653 40,363 26,919 27,081 28,260 27,829 28,014 65,705 66,125 67,746 67,482 68,377

Note: Negative expenditure for Scotland by other UK Government departments associated with Enterprise and Economic Development represents Scotland's population share of the unwinding of the UK Government's financial sector interventions following the global financial crisis.

Recent classification decisions

On 30 October 2015, the ONS announced that private providers of registered social housing in England, which includes many housing associations, have been reclassified from the private sector to the public sector. The ONS implemented this change in the Public Sector Finances on 19 February 2016. As GERS is consistent with the January 2016 Public Sector Finances, the UK figures do not include the effect of the reclassification.

The ONS has also made a number of other classifications that directly affect Scottish public expenditure. The most significant of these affect infrastructure projects being delivered by the Non-Profit Distributing (NPD) programme. Normally, the only expenditure associated with such schemes reported in GERS are the unitary charge payments made by the Scottish Government once the project is completed. However, in July 2015, the ONS decided that the Special Purchase Vehicle set up to deliver the Aberdeen Western Peripheral Route is a public rather than private body. As such, all its expenditure will fall within the public sector expenditure covered by GERS at the time the spending occurs. The bodies set up to deliver the Edinburgh Royal Hospital for Sick Children and the Dumfries and Galloway Royal Infirmary may be treated in the same way. These decisions have not yet been incorporated into the UK Public Sector Finances, as a final decision has not been taken on whether these bodies will be classified to central government or public corporations. The changes have therefore not been incorporated into the main estimates of spending in this edition of GERS. The projects only begin incurring expenditure in 2014‑15, with spending in previous years unaffected. When implemented, the decision will increase Scottish and UK spending in 2014-15 by £109 million.

Box 3.2: Comparisons of Scottish expenditure to other areas of the UK (Experimental Statistics)

The chart below provides experimental estimates of public sector expenditure for each of the UK countries and regions. Full details of the methodology can be found at: http://www.gov.scot/Topics/Statistics/Browse/Economy/GERS/RelatedAreas

We welcome user feedback about this analysis, including comments on the methods used. As normal, please feedback to economic.statistics@gov.scot .

Overall, Scotland is estimated to have the second highest level of spending per person of the UK countries and regions. The charts below show spending per person separately first for capital and then current spend relative to the UK average.

In most countries and regions, capital spending accounts for approximately 10% of total expenditure. There is a large variation in capital spending per person, with London receiving the highest. As shown in the chart, the higher levels of capital spending in London are due, in part, to capital expenditure on public transport, which includes spending on railways, the London Underground, and buses. Spending in Scotland and Northern Ireland is also higher than other parts of the UK due in part to the fact that their water and sewerage services are provided by the public sector, rather than private companies. The fact that these services remain in the public sector in these countries also increases their public sector revenue. Scotland is estimated to have the second highest level of capital expenditure per person of the UK countries and regions, even when spending on Scottish Water is excluded.

The ONS is currently consulting on the production of Public Sector Finance statistics for the Country and Regions of the UK. The consultation is available at: https://www.ons.gov.uk/aboutus/whatwedo/statistics/consultationsandsurveys/allconsultationsandsurveys/consultationoncountryandregionalpublicsectorfinances

Capital spend per person, 2014-15

Capital spend per person, 2014-15

The chart below shows current expenditure per person. This accounts for around 90% of total expenditure. Scotland is estimated to have the second highest level of current expenditure per person of the UK countries and regions

Current spend per person, 2014-15

Current spend per person, 2014-15

Contact

Email: Mairi Spowage

Back to top