This release provides updated information on key public expenditure series that are compiled and published by HM Treasury as National Statistics. Updated estimates are being released for five series:
* Table 1 - Total Managed Expenditure, by budgeting category, 2004-05 to 2008-09;
* Table 2 - Resource Departmental Expenditure Limits (DEL), by departmental grouping, 2004-05 to 2008-09;
* Table 3 - Near-cash resource DEL, by departmental grouping, 2004-05 to 2008-09;
* Table 4 - Capital DEL, by departmental grouping, 2004-05 to 2008-09;
* Table 5 - Public sector expenditure on services by function, 2004-05 to 2008-09, with a link to the historical series 1987-88 to 2008-09.
Revisions to 2008-09 figures since the July 2009 release are largely due to the availability of additional final outturn data. All years have been adjusted for Machinery of Government and other classification changes to provide consistent series. The main Machinery of Government changes reflected in this release are the creation of Business, Innovation and Skills, and the transfer of border control functions from HM Revenue and Customs to the Home Office.
Public expenditure by budgeting category
Total Managed Expenditure (TME) is a measure of total public expenditure drawn from the National Accounts. In this release TME is taken from the latest Public Sector Finance Statistics release (1) and presented against the Treasury's budgeting framework. Further information about the budgeting framework is provided in the notes to this release. For 2008-09 TME is estimated at £617.9 billion. Resource and capital DEL are, respectively, £321.2 billion and £48.1 billion. Departmental AME is £359.7 billion.
Public expenditure by function
Functional spending is based on the expenditure on services framework, which broadly represents the total current and capital spending of the public sector. It therefore includes spending by departments, the devolved administrations, local government and the capital spending of public corporations. Further information about the expenditure on services framework is provided in the notes to this release. The allocation of public spending to function is generally consistent with the United Nations' Classification Of the Functions Of Government (UN COFOG).
Public sector (or total) expenditure on services (TES) for 2008-09 is estimated at £592.0 billion. Historical data back to 1987-88 is available to download from the Treasury website within the following page:
Changes to future releases
As part of the Government's Alignment project, announced in the Green Paper 'The Governance of Britain', changes are being made to the budgeting framework in order to more closely align budgets, Resource Accounts and Estimates. One of these changes is the removal of the near-cash/non-cash boundary within resource DEL, so the next 'public expenditure outturn update' release will not contain a near-cash DEL table. The Treasury is currently in the process of putting together proposals to use this opportunity to make further changes to the release. These proposals will be published in advance of the next release for consultation.
(1) Published as a joint release by the Office of National Statistics and HM Treasury on 19 November and available at
Notes for Editors
1. These data are being released in accordance with the UK Statistics Authority Code of Practice for Official Statistics.
Public expenditure by budgeting category (Tables 1, 2, 3, and 4)
2. Presentation of public expenditure in Tables 1, 2, 3 and 4 follows the Treasury's budgeting and control framework, which splits spending into resource and capital budgets. These budgets are further split into Departmental Expenditure Limits (DEL) and Annually Managed Expenditure (AME). DELs are firm three-year spending limits set for departments. Spending that cannot reasonably be subject to firm multi-year limits is included in AME. DEL and AME together make up Total Managed Expenditure (TME), an aggregate that is drawn from the National Accounts and is defined (in National Accounts terms) as public sector current expenditure plus public sector gross investment.
Public expenditure by function (Table 5)
3. Functional spending is based on the expenditure on services framework, which broadly represents the current and capital spending of the public sector and is therefore similar to Total Managed Expenditure (TME). The main divergence is where certain transactions that score within TME cannot be allocated to functions on a consistent basis, so are excluded from the expenditure on services framework (e.g. depreciation). The allocation of spending to function is generally consistent with the UN Classification Of the Functions Of Government (COFOG). All data are for the whole of the UK public sector, so include spending by devolved administrations and local government.
Further information on public expenditure frameworks
4. There is more information on the budgeting system and expenditure on services framework in annexes C and E respectively of the guidance and methodology note for the PESA 2009 National Statistics release. This is available alongside the PESA 2009 National Statistics release tables, at:
Sources and methodology
5. Treasury statistics on public expenditure are compiled from accounting data. Central government spending is reported by Whitehall departments and the devolved administrations. The Department for Children, Schools and Families supplies data on local government spending on education in England. The Department for Work and Pensions supplies data on local government spending on social protection. All other local government spending data are supplied by Communities and Local Government and the Devolved Administrations. The spending aggregate, TME, was supplied by the Office for National Statistics (ONS) and is consistent with the joint ONS/HMT Public Sector Finance Statistics release of 19 November 2009.
A National Statistics publication
6. National Statistics is the official source for authoritative, accurate and relevant information on the economy and society. It brings together a vast range of statistical information overseen by the National Statistician. The National Statistics logo is your assurance of statistics produced to the highest professional standards. For more information about National Statistics visit www.statistics.gov.uk. The release of data in this press notice has followed the UK Statistics Authority Code of Practice for Official Statistics.
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