Local government expenditure and income in 2024-25

3rd February 2026

The Chief Statistician has released figures on local government finance in 2024-25. These figures provide a comprehensive overview of the financial activity of local government, including revenue expenditure and income; capital expenditure and financing; reserves; debt; and pensions.

Revenue expenditure is the cost of delivering services each year. Local authorities net revenue expenditure in 2024-25 was £14,887 million. Education Services and Social Work Services were the services with highest net revenue expenditure, accounting for £7,778 million and £4,873 million respectively.

Capital expenditure is expenditure that creates the buildings and infrastructure necessary to provide services, such as schools and roads. Local authorities incurred £4,659 million of capital expenditure in 2024-25. This was predominantly financed by grants and contributions of £2,101 million and borrowing of £1,479 million.

Usable reserves are local authorities' surplus income from previous years which can be used to finance future revenue or capital expenditure. At 31 March 2025, local authorities held £3,931 million of usable reserves.

When local authorities borrow money or use credit arrangements to finance capital expenditure, a debt is created which has to be repaid from future revenues. In 2024-25, local authorities made debt repayments of £591 million and at 31 March 2025 they had a total debt of £25,296 million.

For those with financial stamina here is a link
Scottish Local Government Finance Statistics 2024-25