Local government funding and expenditure diagrams 2013-14

  • By London Councils

This year London local government will spend more than £15 billion on providing services to Londoners.

These charts explain where London local government gets its core funding from and what it spends it on.

Funding 2013/14

The first chart shows how London local government’s total core funding for 2013/14 is made up of a combination of special and specific grants (£8.3 billion), council tax (£2.6 billion) and what is called ‘start-up funding’ (£4.8 billion).

funding diagram showing a section of the full diagram

Start-up funding represents funding that boroughs will receive at the start of the new business rates retention system from April 2013. It is the sum of what was previously formula grant (now known as formula funding) and a number of grants that are being rolled in to the system that were previously received as special grants. Boroughs will receive their start-up funding in the form of revenue support grant and locally retained business rates.

Special and specific grants include funding for schools (£7.3 billion) and the new public health responsibility (£553 million).

Explanatory Notes

  • We have defined ‘core funding’ as all revenue funding excluding fees and charges and other miscellaneous income.
  • All figures (except council tax) in this chart come from the local government finance settlement for 2013-14 published by DCLG.  
  • The council tax figure is estimated and therefore is subject to change. It has been derived by London Councils using local information supplied by London Boroughs as at 12/03/13.
  • The Relative Resource Amount is the estimated amount of resources assumed to be available to London authorities locally (e.g. council tax)
  • Central Education functions within LACSEG is a top-slice from the total funding available from formula funding which is redistributed back to local authorities and academies as Education Services Grant
  • Damping is a mechanism to prevent large swings in cash funding allocations compared to assessment within the funding formula assessment.
  • The Dedicated Schools Grant and Pupil Premium are ring-fenced grants over which local authorities have limited control.

Expenditure 2012/13

The second chart shows what proportion of London local government’s total expenditure was spent on different services such as education, housing, waste and social care in 2012/13.

Over half of all expenditure was on education services (51%). Around a quarter of expenditure was on social care (17% on adults and 9% on children). Cultural, environmental, regulatory and planning services represented the third highest area of spend (10% of all expenditure).

Explanatory Notes

  • All percentages in this chart are calculated using budget revenue account data published by DCLG
  • Percentages are rounded to the nearest 1%, therefore may not sum exactly.
  • The headings used are defined by DCLG in the revenue account data.
  • Precepts and Levies have been added to Central Services.
  • Central Services may include recharges and overheads.
  • Housing figures exclude Housing Revenue Account expenditure.