2019-20 Budget Estimates
All local authorities were also asked to provide their budget estimates for capital expenditure in 2019-20, 2020-21 and 2021-22. The commentary in this publication will focus on the budget estimates for 2019-20 only, however the budget estimates for 2020-21 and 2021-22 are available in the workbook containing local authority source data from the return which will be made available at www2.gov.scot/Topics/Statistics/Browse/Local-Government-Finance/Publications/CPOBE.
Local authorities have set a budget for capital expenditure of £4,204 million in 2019-20. This is £730 million (21.0%) higher than the budget set for 2018-19.
As shown in Table 3, Housing Revenue Account (HRA), Education and Roads & Transport account for around three-fifths (61%) of the capital budget.
Table 3: Budget Estimates for 2019-20 by Service, £ millions
|Service||Budget Estimate 2019-20||% of total capital Expenditure||Change from Budget Estimate 2018-19||% change from Budget Estimate 2018-19|
|Housing Revenue Account (HRA)||1,107||26%||232||26.5%|
|Roads & Transport||607||14%||51||9.2%|
|Planning & Development||395||9%||5||1.2%|
|Culture & Related Services||161||4%||-29||-15.2%|
|All other expenditure||679||16%||34||5.2%|
|Total Capital Expenditure||4,204||100%||730||21%|
Local authorities are planning to finance almost half (47%) of their 2019-20 capital programme by borrowing, and three-tenths (30%) using Scottish Government Grants. The remaining expenditure will be financed by a combination of other grants, capital receipts, capital fund and current revenue (Table 4).
Table 4: Budgeted financing of capital expenditure in 2019-20, £ millions
|Source of financing||Amount of financing||% of total capital expenditure financed|
|Scottish Government Grants||1,275||30%|
|All other financing ||715||17%|
|Total Capital Financing||4,204||100%|
This budget would increase the Capital Financing Requirement (CFR) by £1,590 million (8.7%) over 2019-20, from £18,176 on 1 April 2019 to £19,766 million on 31 March 2019. Total External Debt is budgeted to increase by £1,449 million (8.4%), from £17,254 million on 1 April 2019 to £18,703 million on 31 March 2020.
Total External Debt is therefore budgeted to be 95% of CFR which suggests that local authorities are planning to continue to be under-borrowed, see Figure 1.
Figure 1: CFR and Total External Debt on 31 March, 2009 to 2020, £ millions