This year, London local government will receive approximately £21.9 billion of funding to spend on local services, capital programmes and maintaining and investing in local authority housing (HRA).
This bubble chart shows how London local government is funded in 2014-15.
London boroughs’ revenue funding is equal to £14.3 billion, including £6.1 billion ring-fenced Education grants. Revenue Support Grant (RSG) and special and specific grants represent £2.4 billion and £1.3 billion respectively. The remaining revenue funding is raised locally through retained business rates (£2 billion) and council tax (£2.6 billion).
London boroughs’ capital funding totals £4.8 billion in 2014-15. Of this, £1.5 billion is funded through capital grants from central government departments and a further £1.5 billion from other sources such as the Major Repairs Reserve (MRR). Other borrowing not supported by central government represents £949 million and capital receipts make up £859 million.
Total Housing Revenue Account (HRA) funding in London is equal to £2.9 billion. Dwelling rents make up a substantial proportion of this (£2.2 billion) with tenants’ leaseholders’ charges for services and facilities (£399 million) and government grants and contributions from other sources (£283 million) making up the remainder.
- Ring-fenced education grants include Dedicated Schools Grant (DSG) and Pupil Premium
- Capital funding figures are taken from the Capital Estimates Return (CER) 2014-15, published by DCLG
The second chart shows how London local government has budgeted to spend a total of £21.9 billion in 2014-15. Revenue spending on day-to-day services represents £14.3 billion (65%) of total expenditure, while capital expenditure on infrastructure such as housing and education makes up £4.8 billion (22%). HRA expenditure is equal to £2.9 billion (13%) of total expenditure.
The largest area of revenue expenditure is education (£6.9 billion). Adult and children’s social care together represent £3.8 billion of total expenditure. London Councils’ detailed service breakdown of the proportion of revenue expenditure can be found here (link to Revenue funding and expenditure diagrams page i.e. the other new page being created).
Capital expenditure is divided between £2.2 billion of spending on Non-HRA 5 billion on education; around £350 million on transport; and just over £800 million in other areas.
Of the £2.9 billion spent on the Housing Revenue Account, around £780 million is spent on Supervision and management, while Repairs and maintenance account for almost £540 million. A further £1.5 billion is spent in other areas within the HRA.
- The headings used are defined by DCLG in the revenue account and capital estimates returns data.
- Housing figures and Housing Revenue Account expenditure are shown separately.