Accredited official statistics

Public spending statistics: February 2023

Published 28 February 2023

About this release

This release presents updated Public Spending data for the years 2017-18 to 2021-22. All data in this release are National Statistics and are on an outturn basis. TME figures are consistent with data published by the ONS in February 2023. All data and further background detail can be found in the accompanying tables published alongside this release. We welcome any feedback at [email protected]

Total expenditure (£billions)

Expenditure	2020-21	2021-22
Total DEL expenditure	565.9	544.6
Resource departmental AME	495.5	620.1

^{Budgets are divided into Departmental Expenditure Limits (DEL), which are firm plans for three or four years, and Annually Managed Expenditure (AME), covering spending which is demand-led, less predictable and more difficult to control. In the accompanying excel tables, table 1 shows the aggregate position for all departments and all types of spending, with some of the main types of spending shown separately. Table 8 shows in detail how the budgeting data is used to construct the Total Managed Expenditure (TME) figures published by the Office for National Statistics. These are based on National Accounts concepts and are used in the aggregates which underlie the government’s fiscal policy.}

Expenditure	2020-21	2021-22
Total Managed Expenditure (TME)	1,106.1	1,040.1
Total expenditure on services (TES)	1,011.3	954.3

• TME was £1,040.1 billion in 2021-22, a decrease of 6.0 per cent on the previous year.
• TES was £954.3 billion in 2021-22, a decrease of 5.6 per cent on the previous year.

Total Departmental Expenditure Limits, 2021-22 (£millions)

^{For the full table, including years from 2017-18 onward, please refer to Table 7 in the accompanying budget tables excel.}

Departmental Group	Total DEL
Health and Social Care	189,914
Education	75,681
Home Office	15,295
Justice	10,253
Law Officers’ Departments	682
Defence	45,929
Single Intelligence Account	3,356
Foreign, Commonwealth and Development Office	9,146
DLUHC - Housing and Communities	8,902
DLUHC - Local Government	21,262
Transport	29,728
Business, Energy and Industrial Strategy	28,354
Digital, Culture, Media and Sport	2,530
Environment, Food and Rural Affairs	5,376
International Trade	520
Work and Pensions	9,344
HM Revenue and Customs	6,185
HM Treasury	411
Cabinet Office	1,439
Scotland	42,239
Wales	19,366
Northern Ireland	15,940
Small and Independent Bodies	2,702

^{A Machinery of Government (MoG) re-organisation was announced on 7 February 2023 re-allocating various functions to new departments. This publication still uses the department structures as presented in PESA 2022.}

Budgeting Statistics (Tables 1 to 9)

• Total DEL expenditure (Resource DEL excluding depreciation plus Capital DEL) was £544.6 billion in 2021-22, a decrease of £21.3 billion or 3.8 per cent on the previous year in nominal terms. The largest decrease in DEL spending in nominal terms in 2021-22 was for Business, Energy and Industrial Strategy, which was down by £14.3 billion to £28.4 billion. This decrease is largely a result of expenditure related to Covid-19 measures falling in 2021-22. The largest increase in DEL spending in nominal terms in 2021-22 was for Defence, which increased by £3.6 billion to £45.9 billion.
• Total departmental expenditure (Total DEL plus resource and capital departmental AME) was £1,182.9 billion in 2021-22, an increase of £84.1 billion or 7.7 per cent on the previous year.
• Resource departmental AME was £620.1 billion in 2021-22, an increase from £495.5 billion in 2020-21. The largest increase in resource departmental AME spending in nominal terms in 2021-22 was for Business, Energy and Industrial Strategy, which was up by £122.8 billion to £114.9 billion. This mainly reflected higher provisions for the Nuclear Decommissioning Authority (NDA) in 2021-22.

^{In the accompanying excel tables, tables 1 to 9 show central government departmental spending on a budgetary basis. These are the aggregates used by the government to plan and control expenditure. They cover departments’ own spending as well as support to local government and public corporations. They are consistent with “Estimates” voted by Parliament and broadly consistent with departmental Resource Accounts, which are based on commercial International Financial Reporting Standards (IFRS) adapted for the public sector.}

Real terms public expenditure (£billions)

Functions	2020-21	2021-22
General public services	71.3	109.2
Defence	44.3	48.7
Public order and safety	38.6	42.5
Economic affairs	194.6	97.2
Environment protection	12.9	13.9
Housing and community amenities	13.6	15.4
Health	217.0	216.2
Recreation, culture and religion	12.8	13.0
Education	94.8	99.5
Social protection	297.2	300.4

^{In the accompanying excel tables, tables 10 to 11 present spending under the “expenditure on services” framework. This is based on National Accounts definitions and covers the whole of the public sector. It therefore has wider coverage than the budgeting framework and is also more stable over time.}

Trends in functional expenditure (Tables 10, 10a and 10b)

Compared with the previous year:

• in real terms, spending in eight of the ten functions (excluding EU transactions) for 2021-22 increased whilst spending in two functions fell, compared to 2020-21.
• the largest real terms percentage increase was in general public services (53.2 per cent), mainly as a result of an increase in public sector debt interest.
• the largest real terms percentage decrease in spending was in economic affairs (50.0 per cent), mainly due to lower expenditure on covid-19 related measures.
• spending on health shows a nominal and real terms decrease in 2021-22 (1.1 per cent in nominal terms and 0.3 per cent in real terms). This is due to higher levels of expenditure in health for 2020-21, which was largely related to covid-19 measures.

^{In the accompanying excel tables, tables 10, 10a and 10b show public sector expenditure on services broken down by function over a longer number of years, allowing long-term trends to be identified. Table 11 presents data broken down by economic categories such as pay or grants.}

National Statistics

The United Kingdom Statistics Authority has designated these statistics as National Statistics, in accordance with the Statistics and Registration Service Act 2007 and signifying compliance with the Code of Practice for Official Statistics. Designation can be broadly interpreted to mean that the statistics:

• meet identified user needs
• are well explained and readily accessible
• are produced according to sound methods
• are managed impartially and objectively in the public interest

Once statistics have been designated as National Statistics it is a statutory requirement that the Code of Practice shall continue to be observed.

Spending frameworks used in HM Treasury spending publications

Budgeting	Expenditure on services (TES)
This framework provides information on central government departmental budgets, which are the aggregates used by the government to plan and control expenditure. It covers departmental own spending as well as support to local government and public corporations.	This framework is used in HM Treasury publications for statistical analysis. It is based on National Accounts definitions and covers spending by the whole of the public sector. It therefore has wider coverage than the budgeting framework and is also more stable over time.

Trends in public spending

Chart 1: Trends in public spending since 1998-99

• TME as a percentage of GDP, which shows the size of the public sector relative to the size of the whole economy, was 44.5 per cent in 2021-22, which was a decrease of 8.6 per centage points when compared to 2020-21. Figures for 2020-21 show the highest percentage (53.0 per cent) in the period covered by these tables (from 1998-99), reflecting not only increased spending, but also lower GDP as the economy entered recession during the Covid-19 pandemic.

Chart 2: Real terms trends in Public Spending

^{From 2011-12 onwards the ‘grant-equivalent element of student loans’ is no longer part of the TES framework and has therefore been removed from the Education function. Therefore, figures are not directly comparable between 2010-11 and 2011-12. A full explanation of this decision can be found in PESA 2016 Annex E.}

Revisions in this release (since the November 2022 publication)

Expenditure	Amount (£millions)	Comments
Total DEL expenditure	-£189m	Resource and Capital DEL (excluding depreciation) has been revised down in 2021-22. The decrease was largely driven by adjustments to expenditure made by FCDO, DEFRA, and DLUHC .
Resource departmental AME	-2,704m	Driven mainly by downward revisions for Help to Buy impairments within DLUHC.

Changes to Total Managed Expenditure (TME) and public sector debt interest in all years are due to updated ONS data. More information about these changes is available in the monthly ONS public sector finances (PSF) release.

Other Changes

• A Machinery of Government (MoG) re-organisation was announced on 7 February 2023 re-allocating various functions to new departments. This publication still uses the department structures as presented in PESA 2022.
• Expenditure by BEIS on the renewable heat incentive has been reclassified from ‘science and technology’ to ‘enterprise and economic development’ within the economic affairs function. The overall change is budget neutral.

Additional information about the PSS release

Upcoming revisions and changes in forthcoming releases

The next HM Treasury PSS National Statistics release will be published in May 2023. There are no expected changes to the spending frameworks for the next release.

PSS publication schedule for the coming year

Date	Release
May 2023	Contains updates to the PSS series. May is the first publication in which full outturn data for the previous financial year is published, incorporating final data for all local authorities and devolved administrations.
July 2023	The July PSS release contains the first publication of departmental spending outturn for the 2022-23 financial year. Local authority data and much of the data from the devolved administrations are still provisional at this stage of the year. This is the main annual release.
Nov 2023	As well as the PSS release, the Country and Regional Analysis (CRA) is also published in November each year.

GDP deflators and money GDP

Real terms figures are the nominal figures adjusted to 2021-22 price levels using GDP deflators from the Office for National Statistics (released 22 December 2022).

Financial year	GDP deflator at market prices (2021-22 = 100)	% per cent change on previous year	Money GDP (£millions)
2017-18	90.762	1.67	2,102,925
2018-19	92.383	1.79	2,177,222
2019-20	94.786	2.60	2,249,423
2020-21	100.725	6.27	2,085,204
2021-22	100.000	-0.72	2,337,595

^{GDP Deflator: Financial years 2017-18 to 2021-22 taken from ONS series L8GG in Table N.}