Official Statistics

DLUHC enabled spend statistics, 2021-22 and 2022-23

Updated 16 January 2024

In this release

• DLUHC enabled spend is a new official statistic in development. It provides estimates of both direct DLUHC and arm’s length body spend, and funding delegated to local authorities, at a granular and standard level of geography. DLUHC enabled spend is defined in more detail below.
• DLUHC enabled spend across the UK was £65.9 billion in the 2022-23 financial year which amounts to £1,143 per person in England. The majority (74%) of DLUHC enabled spend was delivered as non-ringfenced general funding delegated to local authorities. This represents local government income that is delivered through DLUHC’s local government finance system.
• Local authorities in England which benefit from devolution arrangements typically have higher DLUHC enabled spend per person. In 2022-23, average DLUHC enabled spend per person was £1,134  in mayoral combined authorities (excluding the Greater London Authority), compared to £1,040 in local authorities without devolution deals.
• Spending on local growth, regeneration and transformation is higher outside the Greater South East, while spending on housing is higher in the Greater South East, where supply issues and delivery costs are higher.
• Higher area costs and the Help to Buy scheme spend push up DLUHC enabled spend in London. Spend per person in London was £449 higher than the average of other regions but was more consistent with other regions when adjusted to reflect higher area costs and Help to Buy spend.

Release date:

23 November 2023

Date of next release:

November 2024

Contact: Benjamin Vigreux, Rebecca Williams, Liviu Nafornita subnationalexpenditure@levellingup.gov.uk

Media enquiries: 0303 444 1209 NewsDesk@communities.gov.uk

Things you need to know about this release

• These are official statistics in development (previously ‘experimental statistics’), designed to improve the collective understanding of how DLUHC spends money across the UK. They are the first statistics of their kind, which assign individual items of spend to the local authorities that the spend is located in.
• The methodology used is set out in the technical notes, including assumptions used to apportion funding to local authorities where it has been allocated at different levels of geography. This methodology will continue to be refined for future publications, and the conclusions drawn may change as a result.
• As a result of the methodology used – which is based on actual payments made – estimated programme-specific spend figures may differ from published allocations – which set out the maximum funding set aside for a programme to provide its services. This is especially the case where payments are made in one financial year to provide services in another.
• Many DLUHC functions in England are devolved in Scotland, Wales and Northern Ireland, and so are funded by the devolved administrations’ block grants. Consequently, DLUHC enabled spend per person for Scotland, Wales and Northern Ireland is in addition to that already received via their block grants, and direct comparison with spend in England will not be meaningful.
• To aid meaningful comparison of spend across place and spending segment, we have derived and published levels of spend per person. This is not reflective of, nor a statement on, how funding is or should be allocated. Funding streams seek to deliver different outcomes, which informs the distribution methodologies for each funding stream. These methodologies may not necessarily consider spend per person.
• For example, local government funding operates under a needs-based approach whereby allocations in the Local Government Finance Settlement reflect local circumstances, such as the demand for services from the local population, the cost of delivering those services in that authority, and the ability for each council to raise revenue. Spend per person is unlikely to be an appropriate method for determining how best to fund local authorities because it does not take account of the needs of the local population.

How can DLUHC enabled spend data be used?

Correct use	Incorrect use
✓ Comparing English local authorities ✓ Understanding where DLUHC spending goes at a local level	✘Comparing local authorities across the UK ✘ As a reflection of total government spending at a local level ✘ Identifying how or where local government spends funding ✘ Understanding how central government determines allocations

Statistical Release

DLUHC enabled spend across the UK captures both direct spend by DLUHC and two of its arm’s-length bodies^{[footnote 1]}, and funding delegated to local government through the local government finance system

DLUHC enabled spend in 2022-23 was £65.9 billion, of which £64.9 billion can be attributed to a specific local authority; the remaining £1.0 billion is central spend which cannot be attributed to a local authority. This publication explores the DLUHC subnational spend data, providing insight on the department’s largest categories of spend and how spend is distributed at a local level.

Overall, DLUHC supports 3 broad mechanisms of spending in a place:

1. Direct DLUHC spend - Direct central government spend in local areas, across the UK, both by DLUHC and two of its arm’s-length bodies (ALBs), Homes England and Planning Inspectorate^{[footnote 2]}, to provide services like housing supply (Help to Buy) and local regeneration (Towns Regeneration and Getting Building Fund).^{[footnote 3]}

2. Specific funding delegated to local authorities - Local government income that is delivered through DLUHC grants, which local authorities can only spend on specific services, like social care (Social Care Grant and Improved Better Care Fund).

3. General funding delegated to local authorities - Local government income that is made available through DLUHC’s local government finance system. This non-ringfenced funding is delegated to local authorities, for the provision of general services. The local government finance system (which includes council tax raising powers and settlement funding assessment as core components) considers differences in tax raising abilities and need to spend between local areas in determining allocations.^{[footnote 4]} This third area accounts for by far the largest share of DLUHC enabled public spending across the UK, and so forms a critical part of the geographic picture captured in this data.

Total DLUHC spend, the sum of these 3 mechanisms of spending, is referred to as ‘DLUHC enabled spend’ throughout this publication.

Figure 1: Scale of direct DLUHC and ALB spending, specific and general funding delegated to local authorities, UK, 2022-23.

In 2022-23, DLUHC enabled spend was:

• £11.3 billion on direct DLUHC (including Homes England and Planning Inspectorate) spend
• £5.5 billion on specific funding delegated to local authorities
• £49.0 billion on general (non-ringfenced) funding delegated to local authorities
• £1.0 billion on central spend that cannot be attributed to a local authority district

General funding delegated to local authorities represents the majority of DLUHC enabled spend, both nationally and in every local authority in England. Of the £49.0 billion total, the main way DLUHC delegates general funding to local authorities is through the council tax system, which represented £31.9 billion in 2022-23.

In Wales, Scotland and Northern Ireland, where local authority funding is devolved (see further information in the section Patterns of DLUHC enabled spend per person vary across regions in England below) the largest DLUHC enabled spend mechanism is direct spend by DLUHC, Homes England and Planning Inspectorate.

Of the £11.3 billion direct spending by DLUHC and two of its ALBs across the UK, the largest programme of spend was Help to Buy, accounting for £2.3 billion or 20% of DLUHC and ALB direct local spend in 2022-23.

Direct DLUHC spend and specific funding delegated to local authorities supports housing, economic development, social care and health.

Government activities and spend can be categorised by the Classification of the Functions of Government (COFOG). This indicates the broad themes and purposes that government spends money on.

The majority of direct DLUHC and ALB spend supported Housing and Community Amenities (£7.0 billion), with a large share also supporting Economic Affairs (£3.0 billion). In contrast, specific funding delegated to local authorities primarily supported Social Protection and Health (£2.3 billion each). General funding delegated to local authorities is, by definition, used for many purposes, and so we cannot classify it by its ultimate function.^{[footnote 5]}

Figure 2: The functions of government supported by direct DLUHC and ALB spend and specific funding delegated to local authorities, UK, 2022-23.

Patterns of DLUHC enabled spend per person vary across regions in England.

DLUHC enabled spend per person in England was £1,143 in 2022-23, but this varies significantly by region. Spend per person was highest in London (£1,531), followed by the North East (£1,244) and the North West (£1,141).

Figure 3: Regional spend per person by mechanism of DLUHC enabled spend, England, 2022-23.

Why is spend higher in London?

London has higher levels of general (non-ringfenced) funding delegated to local authorities and higher direct DLUHC and ALB spend, as shown in Figure 3. This is consistent with HM Treasury’s Country and Regional Analysis, where London spend has been historically higher than other regions.

A key driver of this is the higher cost of delivering services in London. The Area Cost Adjustment index (ACA) is used to measure the variation in the costs of delivering services across the country. DLUHC uses the ACA to account for differences in cost by applying it to the formulas used in the Local Government Finance system.

After using ACA to adjust for area costs, the difference between spend per person in London and average of every other region in England falls from £449 to £271.

Higher spend in London is also driven by greater funding for housing programmes, critical to addressing housing supply and affordability constraints in London. Spend per person on the Help to Buy programme is highest in London due to higher house prices and a higher equity cap in London under the scheme.

Spend per person is higher in the North East than in London after accounting for higher area costs and excluding Help to Buy spend (see Figure 4).

Figure 4: Regional spend per person adjusted for area costs and excluding Help to Buy spend, England, 2022-23.

Many DLUHC functions in England are devolved in Scotland, Wales and Northern Ireland, therefore the devolved administrations will have received funding through the block grant (based on the Barnett formula) and allocated funding in line with their priorities. DLUHC enabled spend in Scotland, Wales and Northern Ireland (total spend of £196 million, £116 million and £10 million respectively in 2022-23) is in addition to that already received via their block grants. In 2021-22 and 2022-23 DLUHC provided direct funding for UK-wide programmes such as Homes for Ukraine and the Levelling Up Fund.

Overall DLUHC enabled spend per person in England has increased by £92 between 2021-22 and 2022-23. This was primarily driven by an increase of £3.1 billion in the non-ringfenced funding delegated to local authorities in England during this period. This increase was driven by a combination of growth in the council tax base, increases in council tax levels, an increase in social care grants and a new services grant. More detail can be found in the 2022-23 local government finance settlement. Direct DLUHC spend also increased over the period, most notably due to £1.1 billion of funding announced for Homes for Ukraine in the aftermath of Russia’s invasion of Ukraine.

All regions in England saw an increase in DLUHC enabled spend between 2021-22 and 2022-23 of at least £63 per person. The largest increases in DLUHC enabled spend were in London, the North East and the North West (increases of £162, £114 and £97 respectively). Most local authorities received a level of spend similar to the previous financial year.^{[footnote 6]}

Patterns of DLUHC enabled spend per person vary more significantly at local authority than at regional level.

Excluding City of London and Isles of Scilly, which have very different spending patterns and are treated as outliers in this analysis^{[footnote 7]}, DLUHC enabled spend per person in England was highest in Camden (£2,013), Kensington and Chelsea (£1,996) and Westminster (£1,971); and lowest in England in Oadby and Wigston (£804), Windsor and Maidenhead (£827) and Blaby (£850). Area cost adjustment narrows the gap between highest and lowest spend per person from £1,209 to £950, and deflates spend per person across much of the Greater South East (see Figure 5).

Figure 5: DLUHC enabled spend per person by local authority, before and after adjusting for area costs and excluding Help to Buy, England, 2022-23.

In this bulletin we have used spend per person as the standard measure to compare the amount of DLUHC enabled spend between areas. However, other comparative measures can be used. 

In 2022-23:

• Total DLUHC enabled spend in England was highest in Birmingham (£1.3 billion), followed by Leeds (£817 million) and was lowest in the Isles of Scilly (£6.4 million), reflecting differences in their populations.
• Spend per square meter in England was highest in Tower Hamlets (£29.7 per m²) and lowest in Eden (£0.03 per m²), reflecting differences in DLUHC enabled spend and area size.
• Spend per dwelling was £2,629 in England excluding the City of London and the Isles of Scilly. It was highest in Newham (£5,159 per dwelling) and Tower Hamlets (£4,373 per dwelling). It was lowest in Windsor and Maidenhead (£1,949 per dwelling) and East Lindsay (£1,899 per dwelling). There is a strong positive correlation between spend per dwelling and spend per person in England, showing that local authorities which have higher levels of DLUHC enabled spend per dwelling also tend to have higher levels of spend per person.

In 2022, DLUHC partnered with Blackpool, Grimsby and Blyth, conducting deep dives into high levels of need and local opportunities, laying the foundations for the Levelling Up Partnerships announced at Spring Budget 2023. In 2022-23, each of these local authorities had a higher-than-average DLUHC enabled spend per person: Blackpool (£1,394), North East Lincolnshire (£1,241) and Northumberland (£1,220).

In England, DLUHC is increasingly devolving powers and spending to local areas, a commitment made in the Levelling Up White Paper.

In 2022-23, average DLUHC enabled spend per person was £1,134 in mayoral combined authorities (excluding the Greater London Authority), compared to £1,040 in local authorities without devolution deals. These values are based on DLUHC enabled spend only and do not reflect the full extent of funding devolution from across central government.

Figure 6: Average DLUHC enabled spend per person by local authority devolution status, England, 2021-22 and 2022-23.

There are places of higher direct DLUHC and ALB spend both within and outside of the Greater South East.

In 2022-23, total direct DLUHC and ALB spend per person in England was highest in the London borough of Newham (£712), followed by the City of London (£540) and was lowest in Oadby and Wigston (£42). By excluding funding delegated to local authorities, there are clearer hotspots of higher spend being targeted outside of London, for example South Cambridgeshire (£434) and Cornwall (£322).

Figure 7: Direct DLUHC and ALB spend per person by local authority, England, 2022-23.

By contrast to housing programmes such as the Help to Buy scheme, programme spending in support of regeneration and transformation was highest outside of London, for example, Towns Regeneration (Future High Streets Fund), and UK Shared Prosperity Fund.

Figure 8: Spend per person on Help to Buy and Towns Regeneration by local authority, England, 2022-23.

Official statistics in development

The DLUHC enabled spend statistics are published as official statistics in development. These are official statistics that are undergoing development with scope to improve their trustworthiness, quality and value. See further technical details about these statistics, their methodology and development plans.

Accompanying tables and open data

Tables

Accompanying tables are available to download alongside this release.

Machine readable data

These statistics are available in a machine readable, ‘tidy data’ format.

Technical notes

Please see the accompanying technical notes document for further details.

Information on Official Statistics is available via the UK Statistics Authority website.

Information about statistics at DLUHC is available via the Department’s website.

1. Homes England and Planning Inspectorate. ↩

2.  Of the ALBs associated with DLUHC in 2022-23: some are self-funded and do not appear in the data, some received grant-in-aid from DLUHC and appear as recipients of central spend, and two, Homes England and Planning Inspectorate, have place based policy spend that is categorised as direct DLUHC and ALB spend that can be apportioned to granular geographies. Sponsorship of HM Land Registry moved to DLUHC in June 2023 and is outside of the scope of this publication. ↩

3. This measure of direct DLUHC spend excludes payroll expenses. ↩

4. This is not technically DLUHC “spending”. Instead it is spend by local authorities that is enabled by DLUHC’s local government finance system, which includes some grants from DLUHC, some redistribution between councils and some funding raised by councils themselves via council tax and business rates. We include all of this funding as DLUHC enabled local authority spending in this analysis, to ensure fair comparison of total public spend geographically across the UK. We use Core Spending Power data as a measure of the ringfenced and non-ringfenced spending by local authorities, which DLUHC’s local government finance framework supports. For more detail on this system, see Final local government finance settlement: England, 2023 to 2024. ↩

5. Revenue Outturn data on how local authorities spend funding is available here: Local authority revenue expenditure and financing. ↩

6. DLUHC enabled spend data included within this publication is recorded on a cash basis. As a result, dates and financial periods may not accurately represent when the funding was utilised on the ground. Caution should therefore be taken when looking at year-on-year changes. For more information, see Technical notes ↩

7. City of London and Isles of Scilly have atypically small populations and owing to their unique statuses as local authorities are often excluded from local authority comparisons. ↩