Budgeted council per capita spending falls to below 2007 08 levels

18-07-2012

Local authority budgeted spending for 2012-13 has fallen to below 2007-08 levels. This is equivalent to a reduction of £238 per person from a peak of £2,052 per person two years ago in 2010-11 to £1,814 today.

The data, compiled by the Department for Communities and Local Government (CLG) and the Chartered Institute of Public Finance and Accountancy (CIPFA), shows that Overall Total Service Expenditure by local authorities in England is estimated to fall by 4.8 per cent this year to £94.7bn. Last year, spending fell by 5.7% to £99.5bn.

Education will see the largest budgeted reduction in spending at 8.6% and is the only spending area that expects higher reductions in 2012-13 than in 2011-12. This figure is influenced by the reallocation of resources owing to academies which are funded outside local government.

Social care is the only area expected to see successive annual increases in spend, which despite significant efficiency savings are still subject to unavoidable budgetary pressures including an ageing population.

The figures also show variations in average regional budgeted spending by councils. Local authorities in the East Midlands (-7.5%), South West (-7.1%) and East of England (-7.0%) are, on average, reducing their spending the most while councils in Yorkshire and the Humber (-2.9%) and Greater London (-3.3%) are reducing theirs the least.

Alison Scott, CIPFA’s local government policy lead, said:

“These statistics illustrate the changing nature of local council services as a result of spending cuts coupled with changes in how services are provided such as the academies programme. As cuts and service transformation continue to bite the balance of council services will continue to change.”

 

ENDS

Contact: Tim Windle

CIPFA Press Office

t 020 7543 5787

e tim.windle@cipfa.org.uk

Notes to Editors:

  1. These figures are collected jointly via a statutory return by CIPFA and the Department for Communities and Local Government
  2. This data compares net budgets.
  3. These calculations are based on budgeted figures for 2012-13. The actual expenditure figures may be different by the end of the financial year.
  4. Full details are available from www.cipfastats.net
  5. Data on individual local authorities’ budgeted expenditure can be found in the CIPFA Finance & General Estimates 2012-13 Statistics: www.cipfastats.net/general/financegeneral
  6. More regional information is available on request.
  7. Total Service Expenditure Table

Table 1: Total Service Expenditure, England

 2010-11

2011-12

2012-13

 Change

 Change

2011-12

2012-13

 

 

 2010-11 to 2011-12

 2011-12 to 2012-13

 £m

 £m

 £m

 %

 %

 £'head

 £'head

 Education

             45,965

             43,002

             39,289

                          (6.4)

                          (8.6)

                  830

             752

 Highways & Transport

               7,065

               5,602

               5,272

                        (20.7)

                          (5.9)

                  108

             101

 Social Care*

             20,857

             21,201

             21,249

                            1.6

                           0.2

                  409

             407

 Housing

               2,736

               2,328

               2,160

                        (14.9)

                          (7.2)

                    45

               41

 Cultural & Related

               3,391

               3,059

               2,913

                          (9.8)

                          (4.8)

                    59

               56

 Environmental & Regulatory

               5,505

               5,334

               5,259

                          (3.1)

                          (1.4)

                  103

             101

 Planning & Development

               2,057

               1,398

               1,288

                        (32.1)

                          (7.9)

                    27

               25

 Police

             12,165

             11,840

             11,604

                          (2.7)

                          (2.0)

                  229

             222

 Fire

               2,284

               2,224

               2,217

                          (2.6)

                          (0.3)

                    43

               42

 Central

               3,256

               3,125

               3,159

                          (4.0)

                           1.1

                    60

               60

 Other

                  287

                  392

                  327

                          36.7

                        (16.6)

                      8

                 6

 Total

           105,567

             99,504

             94,737

                          (5.7)

                          (4.8)

               1,921

          1,814

* Compares 2011-12 line 390 with 2012-13 lines 329 and 390. (Social care measurement was split into adult and children’s care for 2012-13).

About CIPFA

CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed. As the world’s only professional accountancy body to specialise in public services, CIPFA’s portfolio of qualifications are the foundation for a career in public finance. They include the benchmark professional qualification for public sector accountants as well as a postgraduate diploma for people already working in leadership positions. They are taught by our in-house CIPFA Education and Training Centre as well as other places of learning around the world. We also champion high performance in public services, translating our experience and insight into clear advice and practical services. They include information and guidance, courses and conferences, property and asset management solutions, consultancy and interim people for a range of public sector clients. Globally, CIPFA shows the way in public finance by standing up for sound public financial management and good governance. We work with donors, partner governments, accountancy bodies and the public sector around the world to advance public finance and support better public services. This includes the development of local professional qualifications in African countries like Lesotho and Nigeria and in Europe in post conflict states in the Balkans.