UK Government

HM Treasury: Public expenditure outturn update

News   •   Feb 25, 2010 11:24 GMT

This release presents updated estimates of key public spending outturn series against two frameworks. The budgeting framework (used in Tables 1 to 7) deals with spending within central government departmental budgets, which is how the Government plans and controls public spending. This budgeting framework is largely based on resource accounting principles.

The second framework is the expenditure on services framework (used in Tables 8 and 9), which broadly follows National Accounts definitions. This framework is used for statistical analyses in these outturn updates as well as in the annual Public Expenditure Statistical Analysis (PESA) publication. Expenditure on services covers current and capital expenditure by the whole of the public sector to deliver services.

Changes to the budgeting framework

As pre-announced in the press notice PN/15/10 there are changes to Tables 1 to 5 in this release as a result of the Government's alignment project, announced in the Green Paper 'The Governance of Britain'.  Specifically, this reflects changes that have been made to the budgeting framework to align more closely with Resource Accounts.   These changes are explained in the notes at the end of this release.  A technical note published alongside this release provides a detailed reconciliation between the pre- and post-alignment frameworks.  Due to the significance of these changes, near-cash resource DEL figures (Table 7) will continue to be published in these public expenditure outturn updates on an unchanged,  pre-alignment basis, until at least the July 2010 release.

New tables in this release

As pre-announced in the press notice PN/15/10, this release now includes the following additional tables:

* Tables 3 and 5 show resource and capital Annually Managed Expenditure (AME), respectively, by departmental grouping. Previously this release only included departmental group analyses of DEL. These new tables provide updates of analyses that were previously published in Tables 1.5 and 1.10 of PESA 2009;

* Table 6 shows a detailed breakdown of the accounting adjustments that are included in Table 1 of this release. These accounting adjustments adjust total current and capital public spending, as measured in the Government's budgeting framework, onto a National Accounts basis, to produce total Public Sector Current Expenditure and total Public Sector Net Investment, as published in the Public Sector Finances statistics release. This new table provides an update to the accounting adjustments that were previously published as Table 1.14 in PESA 2009. Further details about these accounting adjustments are given in Annex D of PESA; and

* Table 9, public sector expenditure by economic category, provides an analysis of total current and capital public spending by economic category. This new table updates figures previously published in Table 5.3 of PESA 2009.
Revisions contained in this release

Updated estimates are released for 2004-05 to 2008-09 for the following budgeting series:

* Table 1 - Total Managed Expenditure (TME) by budgeting category;

* Table 2 - Resource Departmental Expenditure Limits (DEL) by departmental grouping;

* Table 3 (NEW) - Resource Annually Managed Expenditure (AME) by departmental grouping;

* Table 4 - Capital DEL by departmental grouping;

* Table 5 (NEW) - Capital AME by departmental grouping;

* Table 6 (NEW) - Accounting adjustments; and

* Table 7 - Near-cash resource DEL, by departmental grouping.

Other than the alignment changes, there are no significant revisions to the departmental numbers as final outturn for 08-09 was largely reflected in the December release.  However, final outturn for local government has replaced most provisional outturn within Table 1. The figure for Total Managed Expenditure (TME) in 2008-09 (Table 1) has also been revised to exclude the temporary effects of financial interventions (further details are provided in the notes at the end of this release).

Updated estimates are released for the following expenditure on services series:

* Table 8 - Public sector expenditure by function, 2004-05 to 2008-09, with a link1 to the historical series 1987-88 to 2008-09; and

* Table 9 (NEW) - Public sector expenditure by economic category, 2004-05 to 2008-09.

There are two main changes to the expenditure on services figures in this release - revisions to reflect the change to TME to exclude the temporary effects of financial interventions (explained in the notes at the end of this release) and the replacement of most local government provisional outturn with final outturn.

For all the tables and full details of this press release please go to:


NDS Enquiries
Phone: For enquiries please contact the above department