Form

Guidance notes for completing the Quarterly Revenue Update (QRU) form (previously known as Quarterly Revenue Outturn/QRO)

Updated 30 June 2023

Applies to England

These notes should be read in conjunction with Revenue Outturn General Guidance, Revenue Account Guidance and CIPFA’s SERCOP.

Rebranding the QRO data return as Quarterly Revenue Updated (QRU)

As of Spring 2023, the Quarterly Revenue Outturn (QRO) data return is being rebranded as Quarterly Revenue Update (QRU). This is to reflect the following more detailed and explicit recommendation to draw on the data from your authority’s Revenue Account (RA) Budget return for the current year, when producing the figures for your Quarterly Revenue Update data return.

To assist this approach, we are continuing to provide a spreadsheet of local authorities’ submitted RA budget data (for the current year) but which we have grouped (i.e summed) into the QRO/QRU categories. We are advised that this can help where estimation is required, since it is consistent with the framework and guidance of the RA, RO and QRUO returns. This will be made available at www.gov.uk/government/publications/quarterly-revenue-outturn.

Recommended approach

In a focus group in Spring 2022, local authority representatives were unanimous in highlighting the impracticality of providing quarterly expenditure data on a true accruals outturn basis. They advised that instead it was necessary for QRO figures to be derived from updated RA forecast figures and internal reporting. This is a pragmatic approach that produces valid estimates, and is hugely preferable compared to using actuals, if those actuals are at all incomplete or if they would be significantly different from what a quarterly accruals basis would be.

N.B. DLUHC compares submitted QRU/QRO figures to those submitted for recent quarters and to annual Revenue Account Budget (RA) and Revenue Outturn (RO). In doing so, we identify and challenge local authorities whose figures are not credible i.e. if they are not like what accruals quarterly figures would be. So please be sure to use a method of estimation that produces credible estimates from the outset.

It may be helpful to draw on some actual expenditure figures, but it is likely that the best possible estimates will come from starting with RA data, updating this with information from in-year budget updates where available, and letting these figures be central in estimating the figures to be provided for QRU. Additionally, this approach should enable the production of valid estimated figures for QRU that can be produced in an efficient and proportionate manner.

Government grants are shown separately in this and related returns. They are not net off against expenditure; the exception is where grant is passed on as a payment from another local authority, in which case they must be netted off by the recipient authority.

Accuracy and revisions

Local authorities are required to complete the forms on an accruals or quasi-accruals basis rounded to the nearest £’000. The figures provided should be as accurate as possible, using estimation wherever necessary. If outturn information is incomplete, you must estimate in order to provide credible figures.

Do not use cash figures, and do not use incomplete outturn data. Where necessary, you must estimate in order to provide credible figures that are your best estimates and which are a credible quarterly profile on an accruals basis.

The returns should be completed as accurately as is reasonably possible and as a minimum, authorities should be content that:

• The quarterly outturn figures for each of the ten categories of service expenditure and of the non-service lines are accurate to the nearest £1 million. In practice, we expect that smaller authorities will be able to achieve greater levels of accuracy.

• The forecast outturn figures for the financial year represent the authority’s best view at the point the return is submitted and cover the forecast for the full financial year.

When completing quarter 2 and 3 QRU returns, you should update the figures in the column(s) for Quarters 1 (& 2), so that all the columns are the best estimates across the year.

Guidance for completing the QRU form

General approach

Figures submitted for each quarter must reflect NET CURRENT EXPENDITURE, as per the basis defined in the annual Revenue Outturn return form and general guidance (and equivalently also for the Revenue Account budget return), As such, grants from government must not be netted off from expenditure; the exception is where grant has been received by another local authority and is then passed on to a local authority, in which case they must be netted off by the recipient authority. A corollary to this is that you must not include any transaction reflecting when any amount of grant is returned to government. The figures for each quarter must also be credible as an ACCRUALS BASIS estimate (not cash).

Expenditure in respect of any shared services arrangements must follow the approach of revenue outturn: if an authority delivers a service which is paid for by a contribution from another local authority, then the corresponding portion of income for each quarter must be netted off to arrive at net expenditure. The same principle applies for expenditure funded by any income from another body such as an NHS trust or third sector; these amounts must also be netted off from the relevant service line(s).

Payments where the local authority is acting as an agent must be excluded from the return . Such payments are usually identifiable by eligibility and the amount payable not being a decision of the local authority. Thus where a defined allocation, or a defined amount within an allocation, requires the local authority to decide on eligibility or amounts, those amounts should be included in these returns.

Capital items must not be included against the individual service lines and does not reflect total cost. Capital expenditure financed from the revenue account is out scope of this return. The capital items within the trading account are collected to be able to net this off.

Figures should exclude negative items representing the reversal of creditors for previous years’ expenditure. Any cash payments in respect of previous years’ expenditure should also be excluded. Additional Housing Revenue Account data items have been added to the QRU and are labelled as lines 71-84. These changes were approved by our steering group (CLIP-F) in October 2022 and received final sign-off on 26 February 2023, and were confirmed in an email to all authorities on 10 March 2023.

Recharges: Where charges to Central Services have not yet been apportioned (i.e. recharged), an estimate should be made in the relevant service lines. If charges accrued in the quarter will be formally apportioned at year end, please do not include them all in the second General Public Services line, but estimate their apportionment across service lines.

Internal Recharges (inter service charging): The charge should go to the service that is ultimately being supported. This is best understood by analogy to Revenue Outturn in which, if the charges initially relate to another service, then it can also be recorded within the ‘total expenditure’ column for the initial service, then netted off within the ‘other income’ column for the initial service (as well as being recorded within ‘total expenditure’ for the final service).

Completing the form

All figures on the QRU form should be shown as whole thousands.

All relevant cells - outturn for the latest quarter (covering each three-month period, not on a cumulative basis) and forecast end-year figures - must be completed.

Where information is not yet available, estimates must be provided; you will have the opportunity to revise first and second quarter figures in the later collections.

Where a cell is not relevant to your authority, do not leave it blank and instead please record a zero value.

Further guidance on what to include or exclude in specific lines is available by referring to the mapping document. The more detailed guidance in the Revenue Outturn general guidance notes and Revenue Outturn specific guidance notes can be helpful regarding specific question and the Revenue Account guidance notes.

Validation guidance

The form contains in-form validations and the checks carried out against the figures you enter in the form are the same as those that the department performs on receipt of your form. The only additional checks will be whether the comments provided fully explain the variations flagged and whether a forecast has been provided.

Please ensure all validation errors are explained in the comment boxes alongside each line where they appear. This will mean the data will be fully valid on receipt and reduce any further correspondence. The errors and warnings should clear when a comment is entered.

If cells are left blank, warnings will flag against cells you have clicked into without entering any data. Please record zeroes for null entries. Please review all outstanding errors and warnings once the form is complete before saving and submitting.

The quarterly outturn figures are compared against a quarter of Revenue Account data and against what was entered this quarter last year. The Forecasts provided are compared to your authority’s Revenue Account budget data. Validation warnings show where the difference is larger than a certain % and also above a materiality threshold (typically £1 million) from the comparator data.

We don’t expect all the figures you enter to match these pre-populated figures; we just want to know what factor was driving the general variation in the figures compared to these comparable figures.

Any warnings are to be corrected or resolved. However, if after reviewing the figure and determining it is correct, an explanation will be required in the comment boxes. This should be completed for all warnings flagged and completing this box will clear all errors for this line.

Please note that the validation checks work by comparing to your previous Quarterly Revenue data, and to your authority’s RA budget. If your authority was one of the handful that failed to submit its RA return this year, you may get some unexpected validation warnings in this form.

Please take the time to explain any figures which trigger the validation checks but which you believe to be correct, as this will reduce the likelihood of you receiving further queries from us when we receive and process your form.

Guidance for specific fields

The categories of this form reflect that quarterly accrued revenue data is needed on a basis consistent with National Accounts (Classification of Functions of Government – COFOG).

Education and parish spending

The Education and Parish Precepts lines attempt to capture the income of schools and parishes, respectively. This should be reported as an estimate spread across all four quarters , rather than at the date at which grants or precepts were paid to schools or parishes.

Forecast outturn

Authorities are requested to submit the forecast outturn for: the Total Service Expenditure; Net Current Expenditure; the Trading Account lines; the Interest Payable and Similar Charges line; and the Interest Receivable line. Forecast figures are also requested for the non-pay element of education in the final column of the non-pay schools’ expenditure line.

The forecast for Total Service Expenditure must include the total in-year forecast for all service expenditure and the forecast for Net Current Expenditure must be the total in-year forecast for net current expenditure, including all financial adjustments between total service and net current expenditure, and NOT simply the sum of the Total Service Expenditure, External Trading Accounts and Internal Trading Accounts forecasts.

Revenue Expenditure from Capital Sources (RECS):

This expenditure is excluded from reporting in the quarterly form.

Non-pay schools’ expenditure

Non-pay schools’ expenditure is recorded below the All Education line that excludes it. This is an optional box and we do not expect authorities to approach schools to obtain additional data in order to complete it.

Where an authority with education responsibilities does not complete the line, a non-pay education figure will be imputed using the proportions reported by authorities completing the line and education figures provided by the authority in the RA returns for inclusion in the statistical release. See the line-by-line guidance for further detail.

For the purpose of this collection; “schools” are any entities providing an education service holding a delegated budget.

Specific line descriptions

These notes should be read in conjunction with RO general guidance and CIPFA’s SERCO.

General Public Services

Line 1 : Sum of the following:

• RO5 - Line 111 Archives
• RO5 - Line 210 Cemetery, cremation and mortuary services
• RO5 - Line 227 Pest Control

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Line 2

RO6 - Line 490 Total Central Services

• The sum of groups 410 to 489 (including any balance remaining in line 489) less Lines 450, 475, 476, 481, 482 and 484.

• Include contributions made to authorities with archive powers in column 2.

• Record archive services not provided under the LG (Records) Act on line 16

Defence

Line 3

• RO6 - Line 450 Emergency planning

Public Order and Safety

Line 4: Sum of the following:

• RO5 - Line 231 Crime reduction
• RO5 - Line 232 Safety Services
• RO5 - Line 233 CCTV

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Line 5: Sum of the following:

• RO6 - Line 100 Police Services
• RO6 - Line 290 Total Fire and Rescue Services
• RO6 - Line 475 Coroners’ court services
• RO6 - Line 476 Other court services

Economic Affairs

Line 6:

RO2 - Line 90 Total Highways, Roads and Transport Services

• Less lines 49 and 51

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Line 7:

RO2 - Line 51 Congestion charging

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Line 8: Sum of the following:

• RO5 - Line 140 Tourism
• RO5 - Line 219 Trading Standards
• RO5 - Line 220 Water Safety
• RO5 - Line 221 Food Safety
• RO5 - Line 224 Health and safety
• RO5 - Line 225 Port health (excluding levies)
• RO5 - Line 226 Port health levies
• RO5 - Line 230 Licensing - Alcohol and entertainment licensing: taxi licensing
• RO5 - Line 241 Defences against Flooding
• RO5 - Line 243 Land drainage and related work (excluding levy/Special levies)
• RO5 - Line 244 Land drainage and related work - levy/Special levies
• RO5 - Line 247 Coast Protection
• RO5 - Line 250 Agricultural and fisheries services
• RO5 - Line 350 Economic Development
• RO5 - Line 351 Economic Research
• RO5 - Line 352 Business Support

Environmental Protection

Line 9: Sum of the following:

• RO5 - Line 222 Environmental Protection; noise and nuisance
• RO5 - Line 228 Public conveniences
• RO5 - Line 229 Animal and public health; infectious disease control
• RO5 - Line 270 Street cleansing (not chargeable to Highways)
• RO5 - Line 281 Waste collection
• RO5 - Line 282 Waste disposal
• RO5 - Line 283 Trade waste
• RO5 - Line 284 Recycling
• RO5 - Line 285 Waste minimisation
• RO5 - Line 286 Climate change costs
• RO5 - Line 340 Environmental initiatives

Housing and Community Amenities

Line 10:

RO2 - Line 49 Street lighting (including energy costs)

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Line 11: Sum of the following:

• RO4 - Line 10 Housing strategy, advice and enabling
• RO4 - Line 20 Housing advances
• RO4 - Line 31 Administration of financial support for repairs and improvements
• RO4 - Line 38 Other private sector housing renewal
• RO4 - Line 60 Other council property (Non-HRA)

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Line 12: Sum of the following:

• RO5 - Line 223 Housing standards
• RO5 - Line 310 Building Control
• RO5 - Line 320 Development control
• RO5 - Line 335 Conservation and listed buildings planning policy
• RO5 - Line 338 Other planning policy
• RO5 - Line 360 Community development

Public Health

Line 13: Sum of the following:

• RO3 - Line 61 Sexual health services - STI testing and treatment (prescribed functions)
• RO3 - Line 62 Sexual health services - Contraception (prescribed functions)
• RO3 - Line 65 NHS health check programme (prescribed functions)
• RO3 - Line 66 Health protection - Local authority role in health protection (prescribed functions)
• RO3 - Line 68 National child measurement programme (prescribed functions)
• RO3 - Line 70 Public health advice (prescribed functions)
• RO3 - Line 84 Miscellaneous public health services - Children’s 0–5 services (prescribed functions)

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Line 14: Sum of the following:

• RO3 - Line 63 Sexual health services - Advice, prevention and promotion (non-prescribed functions)
• RO3 - Line 71 Obesity - adults
• RO3 - Line 72 Obesity - children
• RO3 - Line 73 Physical activity - adults
• RO3 - Line 74 Physical activity - children
• RO3 - Line 76 Substance misuse - Treatment for drug misuse in adults
• RO3 - Line 77 Substance misuse - Treatment for alcohol misuse in adults
• RO3 - Line 78 Substance misuse - Preventing and reducing harm from drug misuse in adults
• RO3 - Line 79 Substance misuse - Preventing and reducing harm from alcohol misuse in adults
• RO3 - Line 80 Substance misuse - Specialist drug and alcohol misuse services for children and young people
• RO3 - Line 81 Smoking and tobacco - Stop smoking services and interventions
• RO3 - Line 82 Smoking and tobacco – Wider tobacco control
• RO3 - Line 83 Children 5–19 public health programmes
• RO3 - Line 85 Miscellaneous public health services - Children’s 0-5 services - Other (non-prescribed functions)
• RO3 - Line 86 Health at Work
• RO3 - Line 87 Public Mental Health
• RO3 - Line 89 Miscellaneous public health services
• RO3 - Line 91 Test, track & trace and outbreak planning
• RO3 - Line 92 Other public health spend relating to COVID-19

Recreation, Culture and Religion

Line 15:

RO5 - Line 190 Total Cultural and Related Services

• Less Lines 111 and 140

Education

Equivalent RO lines are RO1 10,20,30,40,45,65 and for RA: 110,120,130,140,145,165

Line 16 (first line):

This category is the difference between the total Net Current Expenditure on Education, and the line below which is non-pay expenditure for schools.

Thus, within this line, for schools, only expenditure on employees is to be included (i.e. column 1 of RO1).

‘Sales, fees and charges’ (as per the category RO1 column 4) and ‘Other income’ (as per the category RO1 column 5) must be netted off from this line, profiling appropriate proportions of these for each quarter as required.

For non-pay element of schools expenditure (second line): Sum of the following

For schools* – This figure should be gross of relevant Sales, fees and charges and Other income, i.e. to match running expenses in RO1.

Academy expenditure should not be reported on the QRU form. All related financing and expenditure should be included to cover the period up until the point it became an Academy.

* For the purpose of this collection; “schools” are any entities providing an education service holding a delegated budget. See the excerpt below from accompanying mapping document. When read with the Revenue Outturn RO1 guidance note definitions, this provides further clarification of the relevant types of entities.

QRO line	Classification	RO Form	RO line	RA line	RA service category
16	All Education, excluding non-pay schools’ expenditure	RO1	10	110	Early Years
16	All Education, excluding non-pay schools’ expenditure	RO1	20	120	Primary schools
16	All Education, excluding non-pay schools’ expenditure	RO1	30	130	Secondary schools
16	All Education, excluding non-pay schools’ expenditure	RO1	40	140	Special schools and alternative provision
16	All Education, excluding non-pay schools’ expenditure	RO1	45	145	Post-16 provision
16	All Education, excluding non-pay schools’ expenditure	RO1	65	165	Other education and community budget

This line requests all Education expenditure but excluding the Schools’ non-pay element. This is equivalent to data recorded in the ‘Employees’ expenditure column in the RO form. This can be calculated by applying the RO’s pay / non-pay percentage split to lines 110, 120, 130 & 140 on the RA.

Classification	RO Form	RO line	RA line	RA service category
Non-pay schools’ expenditure	RO1	10	110	Early Years
Non-pay schools’ expenditure	RO1	20	120	Primary schools
Non-pay schools’ expenditure	RO1	30	130	Secondary schools
Non-pay schools’ expenditure	RO1	40	140	Special schools and alternative provision

This line requires only the non-pay element of the schools expenditure. This is equivalent to data recorded in the ‘Running Expenses’ column in the RO form.

Academy expenditure should not be reported on the QRO form. All related financing and expenditure should be included to cover the period up until the point it became an Academy.

Social Protection

Line 17a:

RO3 - Line 30 Total Children’s Social Care

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Line 17b:

RO3 - Line 60 Total Adult Social Care

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Line 18:

RO4 - Line 90 Total Housing Services

• Less Lines 10, 20, 31, 38 and 60

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Line 19 Non-distributed costs - retirement benefits

• Refer to RO6 guidance notes in relation to Line 481.

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Line 20 Non-distributed costs - costs of unused shares of IT facilities and other assets

• Refer to RO6 guidance notes in relation to Line 482.

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Line 21 Non-distributed costs - Revenue expenditure on surplus assets

• Refer to RO6 guidance notes in relation to Line 484.

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Line 22 Other Services (exclude Public health)

• Refer to RA guidance notes in relation to line 698.

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Line 23 Total Service Expenditure

• This automatic calculation is the sum of lines 1 to 22. It comprises Total Service Expenditure plus other items of current expenditure and income within the GFRA.

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Line 24 Housing Benefits: Rent allowances – mandatory payments

• Refer to RS guidance notes in relation to Line 711. Ignore guidance on income from mandatory rent allowances.

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Line 25 Housing Benefits: Non-HRA rent rebates – mandatory payments

• Refer to RS guidance notes in relation to Line 712. Ignore guidance on income from mandatory non-HRA rent rebates subsidy.

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Line 26 Housing Benefits: Rent rebates to HRA tenants – mandatory payments

• Refer to RS guidance notes in relation to Line 713. Ignore guidance on income from mandatory HRA rent rebates subsidy

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Line 27 Housing Benefits: Subsidy limitation transfers from HRA

• Transfers from the HRA to the GFRA resulting from the operation of Rent Rebate Subsidy Limitation.

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Line 28 Contribution to the HRA re items shared by the whole community

• Refer to RS guidance notes in relation to Line 718.

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Line 29 Parish precepts

• Refer to RS guidance notes in relation to Line 721.

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Line 30 Integrated Transport Authority (ITA) levy

• Refer to RS guidance notes in relation to Line 722.

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Line 31 Waste Disposal Authority (WDA) levy

• Refer to RS guidance notes in relation to Line 724.

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Line 32 London Pensions Fund Authority (LPFA) levy

• Refer to RS guidance notes in relation to Line 727.

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Line 33 Other levies

• Refer to RS guidance notes in relation to Line 728.

• Do not record Environment Agency flood defence levy as this will be picked up from other data.

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Line 34 External Trading Accounts net surplus/deficit

• Refer to RS guidance notes in relation to Line 731.

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Line 35 Internal Trading Accounts net surplus/deficit

• Refer to RS guidance notes in relation to Line 732.

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Line 36 Adjustments to net current expenditure

• Refer to RS guidance notes in relation to Line 748.

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Line 37 Appropriations to(+) / from(-) Accumulated Absences Account

• Refer to RS guidance notes in relation to Line 747.

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Line 38 Net Current Expenditure

• This automatic calculation is the sum of lines 23 to 37. It comprises Total Service Expenditure plus other items of current expenditure and income within the GFRA.

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Line 39 Capital charges accounted for in External Trading Accounts

• Refer to RS guidance notes in relation to Line 741.

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Line 40 Capital charges accounted for in Internal Trading Accounts

• Refer to RS guidance notes in relation to Line 742.

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Line 41 Interest payable and similar charges

• Refer to RS guidance notes in relation to Line 781.

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Line 42 Interest receivable

• Refer to RS guidance notes in relation to Line 786

Line 71 Dwelling rents (gross)

Refer to RO4 guidance notes in relation to Line 101.

Line 72 Non-dwelling rents (gross)

Refer to RO4 guidance notes in relation to Line 102.

Line 73 Other income (gross)

Refer to RO4 guidance notes in relation to Lines 103-108 and 111.

Line 81 Repairs and maintenance

Refer to RO4 guidance notes in relation to Line 121.

Line 82

Supervision and management (including CDC)

Refer to RO4 guidance notes in relation to Line 122.

Line 83 Special services & rents, rates, taxes, and other charges

Refer to RO4 guidance notes in relation to Lines 123 and 124.

Line 84 Housing Revenue Account expenditure - other

Refer to RO4 guidance notes in relation to Lines 125-130 and 133.

If you have any further queries that you feel have not been addressed in these notes, please email your queries to QRO@levellingup.gov.uk (although the name of the data collection has changed to QRU, the email address will remain the same as before).