Policy paper

Local government finance statistics: Close of review

Published 19 November 2025

Applies to England

1. Introduction 

Local government finance (LGF) statistics are produced by the Ministry of Housing, Communities and Local Government (MHCLG) using data supplied by all local authorities in England. The statistics are published throughout the year in statistical releases and live tables on the Department’s website. 

In April 2022, the Department published the findings of the Review of Local Government Finance Statistics. The aim of this review was to identify: 

1. Which data needs are currently being met and which are not 

2. The highest priority changes to consider taking forward 

3. The additional or reduced burden on both authorities and MHCLG of making changes 

Several key recommendations were made as a result of this review. These broadly fell into 6 categories: 

1. Improving the presentation and accessibility of statistics 

2. Filling data gaps 

3. Exploring data frequency and data timeliness 

4. Exploring alternative methods of data collection 

5. Exploring the feasibility of using administrative data sources to supplement survey collection 

6. Enhancing local authority engagement 

As set out in the original review, we intend to make changes over a 3-year period, beginning in 2022. 

As of summer 2025, the majority of the review recommendations have been implemented and incorporated into business as usual. As such, this marks an appropriate point to formally bring the review to an end, setting out all work done so far and the plans in place for the remaining review recommendations. 

This report sets out the current position of each recommendation and notes where they have been integrated into business as usual. Annex A lists all recommendations from the original review and provides a brief summary of related outcomes. 

Since the time of the first report, the department has changed names. This report refers to the department under its current name: MHCLG. 

2. Improving the presentation and accessibility of statistics 

The review made a number of recommendations on improving the presentation and accessibility of statistics. These included machine readable data and improving the visualisations of data and links between collections. 

In the summer of 2024, data for both revenue and capital outturn collections were published in a machine-readable time series format for the first time. This work now forms part of business as usual, with updated time series data being released shortly after each publication. We are working to reduce this lag further. Both time series collections include appropriate metadata, including local authority restructures, to allow users to manipulate these data for their purposes. 

Work is currently underway to compile a machine-readable time series for Council Taxbase data starting from 2019, with further plans to compile time series data for annual receipts data from the QRC4 form, Council tax data from the CTR form and Local Government Pension Fund data from the SF3 form.  

The completed work on time series data will allow for easier data visualisation in future as this data can be more readily used for this purpose. Work on developing dashboards will continue internally as part of business as usual and we hope to publish these in due course. 

A further recommendation was to produce a graphic or table to show the links between the collections. Some work has been done internally on this. However, we have not yet developed a product which would adequately meet user needs. This information is complex and often where there are links between the collections, there can be slight differences in this information. We will continue to consider how we can represent this in a way which is both simple and accurate. 

3. Filling data gaps 

A number of areas were identified where additional data would be beneficial for stakeholders. These covered, social care, housing revenue account, grant income, balance sheet data as well as other revenue and capital data. 2024 saw the implementation of further changes to the capital outturn return to fill data gaps. The first data from these changes was published in October 2024. This marks the implementation of all changes to the capital returns, other than additional balance sheet information. Work on this proposal will continue to assess how the need for additional data can be balanced against the burden that it creates. 

In revenue outturn, a small number of changes were implemented in 2023. More granular data relating to the Better Care Fund income and recharges of management and support services are planned for collection beginning from the 2025-26 financial year, which will be sent to authorities for completion in April 2026. 

A further recommendation for the revenue data was to collect and publish data to show income from other authorities for services provided on their behalf and income transferred from other bodies. This recommendation was not taken forward as the burden was greater than initially anticipated. 

4. Exploring data frequency and timeliness 

The review recommended setting up a working group to discuss potential changes to in-year collection of revenue data as discussions on this challenging topic did not result in a clear set of proposals for change during the review. The working group concluded that a fourth quarter estimate collected at quarter three would best meet the requirement. 

The first quarter 4 forecast for service sub-categories for revenue outturn was collected on a voluntary basis for 2023-24 and following approval from relevant groups from 2024-25 forms part of statutory reporting requirements. The first data underpinned by the formal requirement was published at the beginning of March 2025. 

5. Exploring alternative methods of data collection 

Using alternative or automated methods of data collection was identified as a potential way to reduce burden during the review. MHCLG worked with ONS on an initial feasibility study into this work. The study concluded that, due to the variety in local authority systems, it will be challenging to implement automated collection of data directly from these systems. However, this will be kept under consideration as this workstream could provide substantial time savings and reduction in burden for local authorities. 

We will continue to work closely with LAs directly and through CLIP to ensure that we align data requests to LA operations and reduce burden where possible. Additionally, MHCLG Digital are currently exploring ways to reduce reporting burden of statistical returns via a discovery project. While this work is in early stages, it will help inform future considerations around data collection methods. 

6. Exploring the feasibility of using administrative data sources to supplement survey collection 

The ONS continues to consider how administrative data can be used to supplement data collection. A series of feasibility assessments found that with further refinement, anonymised Value Added Tax (VAT) data could be used to improve the timeliness and granularity of public sector revenue data. An exploration of transparency declarations and Pay As You Earn Real Time Information (PAYE RTI) demonstrated that these data have the potential to improve the granularity of information on public sector spending. Some of the remaining challenges include differences in reporting formats which make combining administrative data into a single, consistent dataset difficult.  

7. Enhancing local authority engagement 

A number of ways of enhancing engagement with local authorities were identified during the review. 

Both revenue and capital data collection teams continue to hold regular webinars for data providers. These continue to receive positive feedback from attendees. The data collection teams tailor the webinars to cover relevant information for upcoming collections and common queries received. 

During 2024, local authorities have also been engaged in work to improve the guidance provided alongside data collection forms through a series of focus groups. This was seen as a valuable endeavour by both the data collection teams and those involved in contributing. This form of engagement continues in 2025. The outcomes of this work should make forms clearer and easier to complete, reducing the burden on data providers. The department is grateful to all local authority colleagues who have given their time to assist. 

Annex A: Changes to data collections 

Improving the presentation and accessibility of statistics 

Recommendation: LGF data tables should be published in a machine-readable format, with a time series. 

Outcome: Machine-readable time series data for both capital and revenue data collections has now been published. We plan to introduce machine readable time series data for other key data series such as the council tax base. 

Recommendation: A graphic or table to show links between LGF data tables should be published (for example, to show links between the revenue outturn and council tax data tables); the possibility of extending this to link to external datasets should also be explored (for example, to show links between the revenue outturn and Adult Social Care Finance Return (ASC-FR) published by NHS Digital). 

Outcome: We will continue to consider how we can represent this in a way which is both simple and accurate. 

Recommendation: Data visualisations should be published alongside LGF data tables to aid user understanding of the data. 

Outcome: Work on developing dashboards will continue internally as part of business as usual. 

Recommendation: Metadata published alongside LGF statistics should include information on local authority restructures and changes to local authority responsibilities to enable users to manipulate data to meet their needs. 

Outcome: Metadata has been published alongside the time series data sets. 

Filling data gaps - Adult social care 

Recommendation: Explicitly show BCF income and other NHS income in the revenue outturn for adult social care services. 

Outcome: planned for implementation in 2026. 

Recommendation: MHCLG should continue to work with producers of Adult Social Care Finance Return (ASC-FR) to reconcile discrepancies between figures in the revenue outturn and ASC-FR, to improve the coherence of the two collections. Following this, producers of the statistics should explore whether updates to guidance documents are required. This may make it easier for local authorities to map data from one return to the other. 

Outcome: MHCLG and DHSC continue to meet regularly to discuss the relationship between revenue outturn and ASC-FR data collections. ASC-FR data collections. 

Recommendation: MHCLG should work with users and producers of adult social care statistics to explore the potential of administrative data sources to supplement adult social care data collection, particularly in relation to client age groups. 

Outcome: From 2025–26, DHSC will introduce a monthly client-level dataset to replace current LA ASC collections. It will track support requests, care provided, and outcomes. MHCLG aims to shape what data is published and how it reflects access and care delivery across groups. 

Filling data gaps - Children’s social care 

Recommendation: Establish a cross-government group, with representation from MHCLG and DfE, to reconcile discrepancies between figures in the revenue outturn and the Section 251 data return. 

Outcome: Client level data is published on an experimental basis by DHSC and MHCLG will continue to contribute views on what data is published and its impact as it replaces existing ASC collections. 

Recommendation: Publish a more granular breakdown of expenditure on children looked after in the revenue outturn to show expenditure on residential care and fostering services. 

Outcome: Implemented in 2023. 

Recommendation: Publish a more granular breakdown of expenditure on asylum seekers in the revenue outturn to show expenditure on looked after and non-looked after asylum seeking children. 

Outcome: Implemented in 2023. 

Filling data gaps - Grant income 

Recommendation: Publish memorandum items showing all grant information submitted by local authorities in the revenue outturn. 

Outcome: Implemented in 2023. 

Recommendation: Explore the feasibility of improving standardisation of grant names to improve the usability of such memorandum items. 

Outcome: No changes made due to the number of grants provided from a range of sources. For the largest grants (including those comprising Core Spending Power at the local government finance settlement) values are pre-populated with known allocations to reduce burden.  

Filling data gaps - Housing Revenue Account 

Recommendation: Publish HRA and non-HRA housing expenditure in the following statistical releases: 

1. Quarterly capital payments and receipts 

2. Provisional annual capital payments and receipts 

3. Quarterly revenue outturn 

Outcome: Implemented in 2023. 

Filling data gaps - Other revenue outturn 

Recommendation: Publish expenditure on recharges for management and support services for each service line in the revenue outturn. 

Outcome: Planned for implementation in 2026. 

Recommendation: Publish expenditure by local authorities on agency staff for each service category in the revenue outturn. 

Outcome: Implemented in 2023. 

Recommendation: Expand the existing ‘other income’ column in the revenue outturn to show income from other authorities for services provided on their behalf and income transferred from other bodies. 

Outcome: It was agreed that this would not be taken forward due to a higher burden than initially anticipated. 

Recommendation: The final revenue outturn should be certified by CFOs before submitting to MHCLG. 

Outcome: Implemented in 2023. 

Filling data gaps - Capital and commercial 

Recommendation: Publish additional data tables to show the value of local authority assets. 

Outcome: Implemented in 2024. 

Recommendation: Publish a list of local authority trading companies, subsidiaries, associates and joint ventures. This should include sector industrial classification of the company and information on the size of the company. 

Outcome: Implemented in 2023. 

Recommendation: Publish memorandum items to show the grants local authorities have used to finance capital expenditure. 

Outcome: Implemented in 2023. 

Recommendation: Publish an updated forecast of local authority capital finance requirement (CFR) on a quarterly basis. 

Outcome: Implemented in 2023. 

Recommendation: Survey a sample of local authorities to collect information on the capital grants paid to households and non-profit institutions serving households (NPISH). This exercise should be repeated every three years to ensure the ratio used for the UK National Accounts remains up to date. 

Outcome: Implemented in 2024. 

Recommendation: The final capital outturn should be certified by CFOs before submitting to MHCLG. 

Outcome: Implemented in 2023. 

Filling data gaps - Additional balance sheet information 

Recommendations: 

Estimates of provisions, contingent liabilities and guarantees 

More detailed recording of loans and equity – acquisitions, disposals, and repayments, where applicable 

A breakdown of the stock of each type of financial liability by currency 

A breakdown of the stock of each type of financial asset and liability by residency (UK vs. rest of the world) of the counterparty 

A breakdown of the stock of each type of financial asset and liability by institutional sector of the creditor, for example, central government, local government, households 

Parallel valuations of debt liabilities (especially gilts and other bonds) – market (fair), face (redemption), and nominal value, where applicable 

A breakdown of the crossholdings of each type of debt liability within, and between, local authorities, public corporations, and central government 

Outcomes: A consultation with authorities suggested this ask would be more burdensome than initially anticipated. Implementation is on pause until MHLCG, ONS and LAs can reach an agreement on what implementation should look like. 

Exploring data frequency and data timeliness 

Recommendation: Establish a working group with representatives from central government and local authorities to explore opportunities for improving the collection of in-year revenue expenditure data, this may include improvements to the content, frequency, timeliness or presentation of the data. The working group should aim to find out more about different local authority accounting systems and internal monitoring practices to understand what information may already be available to provide to central government on a monthly or quarterly basis. 

Outcome: A quarter 4 estimate was added to the Quarterly Revenue 3 return in 2024 and made mandatory from 2025. 

Exploring alternative methods of data collection 

Recommendation: MHCLG should explore the feasibility of automating data collection, for example by using secure hooks in the accounting software of local authorities to draw down intelligence which might supplement or replace existing collections. 

Outcome: A feasibility study was conducted to address this recommendation. 

Exploring the use of administrative data sources to supplement LGF survey collection 

Recommendation: This area is of particular interest to ONS, as such, it is recommended that ONS work with MHCLG to explore the use of administrative data to supplement LGF data collections, including but not limited to: 

a) HM Revenue and Customs (HMRC) Pay As You Earn (PAYE) data to provide further insight on areas such as employee costs and pension schemes 

b) HMRC Value Added Tax (VAT) data to provide further insight on areas such as local authority trading schemes 

c) Central portals local authorities use to record spending or carry out a particular activity 

Outcome: the exploration phase of this work has been completed. 

Enhancing local authority engagement 

Recommendation: Host annual webinars on each of the collections for data providers to attend and raise any questions. 

Outcome: annual webinars are now being hosted. 

Recommendation: Facilitate the set-up of a group for data providers in local authorities to discuss completing data collection forms. 

Outcome: This was picked up as part of the annual webinars, which was the most practical solution. 

Recommendation: Provide further information to local authorities on how data users from across central government use the data provided by local authorities. 

Outcome: Information on this is published on gov.uk: Uses of local authority spending and financing data returns - GOV.UK