Accredited official statistics

Local authority capital expenditure and receipts in England: 2023 to 2024 final outturn

Updated 17 June 2025

Applies to England

1. In this release:

• Capital expenditure by local authorities in England totalled £29.7 billion in 2023-24, up £538 million (2%) in real terms compared to 2022-23.

• Total expenditure on fixed assets totalled £23.7 billion in 2023-24, up £1.4 billion (6%) in real terms compared to 2022-23. This was largely due an increase of £804 million in new construction, conversion and renovation and an increase of £424 million in expenditure on acquisition of land and existing buildings.

• Total financial expenditure totalled £6 billion in 2023-24, down £871 million (13%) in real terms compared to 2022-23.

• Housing continues to be the service area with the greatest expenditure, with Housing increasing to £9.8 billion (3%) and Highways & Transport remaining at £7.9 billion in real terms in 2023-24 compared to 2022-23.

• Capital receipts totalled £3.6 billion in 2023-24, down £940 million (21%) in real terms than in 2022-23.

• Capital grants remained the largest source of financing of capital expenditure in 2023-24 after overtaking prudential borrowing in 2021-22. Capital grants increased to £12.8 billion, up £709 million (6%) in real terms compared to 2022-23. Prudential borrowing increased to £9.9 billion, up £13 million (less than 1%).

Original Release date: 10 October 2024 

Updated Release date: 17 June 2025

Date of next release: November 2025 

Responsible Statistician: Imogen Johnson-Ormston 

Contact:  CapitalData@communities.gov.uk  

Media enquiries: NewsDesk@communities.gov.uk

2. Introduction

Capital expenditure comprises the buying, constructing or improving of physical assets, such as buildings, land, vehicles and other miscellaneous property, including streetlights and road signs. It also includes grants and advances that authorities make to other bodies for capital purposes. Because of the project-based nature of capital expenditure, there can be relatively larger variance in expenditure over time compared with revenue expenditure.

This release provides the updated final outturn for local authority capital expenditure and receipts in the financial year April 2023 to March 2024. These data are derived from valid Capital Outturn Returns (COR) from 410 out of 410 local authorities in England. These data are collated by the Central Hub Analysis, Statistics and Evaluation Division of the Ministry of Housing, Communities and Local Government (MHCLG). COR forms capture local authority capital expenditure and receipts by economic category and service area, as well as a breakdown of how expenditure is financed, prudential system information, and accumulated capital receipts and major repairs reserve levels. COR service areas are consistent with the Service Reporting Code of Practice (SeRCOP).

A provisional outturn was published in a Statistical Release in June 2024. This was based on information from Capital Payments and Receipts Returns 4 (CPR4) submitted by local authorities in England.

3. Local Government Finance Data Review

MHCLG carried out a comprehensive review of local government finance statistics in 2021.

Details of the outcome of the review were published on 11 April 2022 and can be found here: Review of Local Government Finance Statistics.

An update to the review was published on 15 May 2023 and details the progress made against the recommendations. It can be found here: Local government finance statistics: update and review recommendations.

The local authority level data tables accompanying this release include two additional tables covering new data items collected this year. These are:

• Local authority acquisitions, disposals & impairment costs by authority, England, 2023-24

• Local authority value of assets held directly, in trading companies and in subsidiaries by authority, England, 2023-24

4. Capital expenditure and receipts by economic category

Local authorities report capital expenditure, incurred by buying, building or improving capital assets, and capital receipts, received from the sale of a capital asset.

Total capital expenditure is divided into total expenditure on fixed assets, which includes spending on tangible and intangible fixed assets, and total financial expenditure, which includes grants, loans, and acquisitions of share or loan capital for capital purposes.

As shown in Table 1 and Figure 1, capital expenditure by local authorities in England totalled £29.7 billion in 2023-24, up £538 million (2%) in real terms compared to 2022-23. Total financial expenditure decreased by £871 million (13%), down to a total of £6 billion, however this was offset by an increase of £1.4 billion (6%) in total expenditure on fixed assets, which totalled £23.7 billion.

The decrease in financial expenditure was largely due to a decrease in grants, loans and other financial assistance to £5.9 billion, a £504 million (8%) decrease compared to 2022-23.

The increase in expenditure on fixed assets was largely due to an increase in new construction, conversion and renovation of £804 million (4%) compared to 2022-23. New construction, conversion and renovation remained the largest category of capital expenditure at £19.1 billion. Expenditure on acquisition of land and existing buildings, increased to £2.5 billion, a £424 million (20%) increase compared to 2022-23.

Capital receipts totalled £3.6 billion in 2023-24, a decrease of £940 million (21%) in real terms compared to 2022-23.

Expenditure treated as capital by virtue of Section 16(2)(b) Direction decreased to £619 million from a high of £859 million in 2022-23.

Table 1: Local authority capital expenditure & other transactions and capital receipts by category: forecast and final outturn, England, 2019-20 to 2023-24

Real terms series, all monetary figures in 2023-24 prices (£ millions)

Category	Type	2019-20	2020-21	2021-22	2022-23	2023-24
Acquisition of land & existing buildings	Forecast (adjusted)	6,336	5,669	4,530	3,106	1,695
	Outturn (final)	5,030	3,181	2,322	2,093	2,517
New construction, conversion & renovation	Forecast (adjusted)	16,898	18,569	20,379	17,999	18,085
	Outturn (final)	16,340	16,476	18,489	18,270	19,074
Vehicles, plant, furniture & equipment	Forecast (adjusted)	1,520	1,795	1,863	1,935	1,849
	Outturn (final)	1,960	1,734	1,733	1,637	1,791
Intangible fixed assets	Forecast (adjusted)	474	343	405	409	269
	Outturn (final)	324	324	306	313	340
Total expenditure on fixed assets	Forecast (adjusted)	25,229	26,376	27,177	23,448	21,898
	Outturn (final)	23,655	21,715	22,850	22,313	23,722

Category	Type	2019-20	2020-21	2021-22	2022-23	2023-24
Grants, loans and other financial assistance	Forecast (adjusted)	7,331	7,207	7,360	6,085	5,869
	Outturn (final)	5,522	5,712	5,867	6,393	5,889
Acquisition of share and loan capital	Forecast (adjusted)	639	488	284	271	191
	Outturn (final)	2,028	1,176	900	499	131
Total financial expenditure	Forecast (adjusted)	7,970	7,696	7,646	6,355	6,060
	Outturn (final)	7,550	6,889	6,767	6,891	6,020

Category	Type	2019-20	2020-21	2021-22	2022-23	2023-24
Total capital expenditure	Forecast (adjusted)	33,200	34,071	34,823	29,804	27,958
	Outturn (final)	31,204	28,603	29,617	29,204	29,742
of which GLA[1]	Forecast (adjusted)	4,950	4,865	3,975	3,911	3,200
	Outturn (final)	4,482	3,856	3,847	3,864	3,475
Payment of LSVT levy	Forecast (adjusted)	0	0	0	0	0
	Outturn (final)	0	0	5	1	0
Expenditure treated as capital by virtue of a Section 16(2)(b) Direction[2]	Forecast (adjusted)	83	71	197	195	400
	Outturn (final)	213	217	260	859	619
Total capital expenditure & other transactions	Forecast (adjusted)	33,283	34,142	35,021	29,997	28,358
	Outturn (final)	31,417	28,820	29,875	30,064	30,361

Category	Type	2019-20	2020-21	2021-22	2022-23	2023-24
Total capital receipts	Forecast (adjusted)	3,037	4,557	2,726	2,584	2,329
	Outturn (final)	3,352	2,996	4,030	4,538	3,598

Notes:

1. Forecasts are unadjusted at the GLA level.

2. Expenditure which does not fall within the definition of expenditure for capital purposes but is treated as capital expenditure by a direction under section 16(2)(b) of the Local Government Act 2003.

3. Outturn figures for 2022-23 have been revised since the previous publication, as these include a small number of late submissions or resubmissions of data by local authorities. Forecast figures have not been revised.

• Sources: CER 2019-20 to 2023-24 and COR 2019-20 to 2023-24

Figure 1: Local authority capital expenditure in real terms by economic category, England, 2019-20 to 2023-24

A grouped bar chart showing a consistently large expenditure on 'new construction, conversion and renovation' compared to other main expenditure areas.

Figure 2 shows the difference between unadjusted forecasts, adjusted forecasts, and outturn data for total capital expenditure since 2019-20. Forecasts are adjusted as local authority forecasts are consistently higher than subsequent outturn. Differences between them can be caused by slippage in timings of projects, changes in service priorities or in financial capabilities of an authority throughout the year.

Caution should be taken when comparing outturn and forecast data over time in this release. This is especially true for 2020-21 since these forecasts were based on local authority estimates made prior to the impact of coronavirus (COVID-19) outbreak in early 2020.

Figure 2: Total capital expenditure in real terms: unadjusted forecast, adjusted forecast, and final outturn, England, 2019-20 to 2023-24

A line graph showing a consistent overestimation of capital expenditure by the unadjusted forecast and a more accurate estimate by the adjusted forecast.

Notes:

1. Outturn figures for 2022-23 have been revised since the previous publication, as these include a small number of late submissions or resubmissions of data by local authorities. Forecast figures have not been revised.

5. Capital expenditure by service area

Local authorities report capital expenditure and receipts across 13 service areas, as shown in Table 2.

Figure 3 shows how capital expenditure across these service areas has changed since 2019-20.

Housing Services and Highways & Transport Services continued to account for the majority of local authority capital expenditure in 2023-24, with the two accounting for £9.8 billion (33%) and £7.9 billion (27%) of all capital expenditure respectively. Over the last five years, in real terms, the proportion of total capital expenditure attributed to Housing Services has increased by 10 percentage points.

Expenditure on Housing Services was up by £323 million (3%) in real terms compared to the previous year.

Expenditure on Highways & Transport Services was down £29 million (less than 1%) in real terms compared to the previous year. Greater London Authority (GLA) continues to have the highest expenditure from a single authority (£1.9 billion) despite a decrease of £225 million (11%) in real terms compared to the previous year.

Expenditure on Trading Services totalled £960 million in 2023-24, down £413 million (30%) in real terms from the previous year. This is the lowest level of expenditure on trading services over the past five years and is the fourth consecutive year of decline.

Table 2: Local authority total capital expenditure by service: final outturn, England, 2019-20 to 2023-24

Real terms series, all monetary figures in 2023-24 prices (£ millions)

Service	2019-20 Outturn (final)	2020-21 Outturn (final)	2021-22 Outturn (final)	2022-23 Outturn (final)	2023-24 Outturn (final)
Education	2,743	2,423	2,464	2,223	2,412
Highways & Transport	8,872	9,017	8,452	7,896	7,925
of which GLA	3,212	2,887	2,430	2,099	1,874
Social Care	440	331	399	414	506
Public Health	25	27	29	41	26
Housing	7,185	6,850	8,277	9,464	9,787
of which London Boroughs	2,725	2,682	3,246	3,978	4,004
of which GLA	687	355	750	1,249	830
Culture & Related Services	1,475	1,312	1,462	1,425	1,547
Environmental & Regulatory Services	845	841	1,035	1,362	1,353
Planning & Development Services	2,245	1,995	2,283	2,080	2,423
Digital Infrastructure	165	202	261	195	156
Police	901	959	836	817	835
Fire & Rescue Services	194	193	185	212	273
Central Services[1]	2,233	2,277	2,121	1,699	1,541
Trading[2]	3,881	2,179	1,812	1,373	960
Total Capital Expenditure	31,204	28,603	29,617	29,204	29,742

Notes:

1. Figures are from the ‘England grossed excluding double counting’ total, which should avoid double counting due to any flow of grants, loans or other financial assistance or receipts between local authorities and/or between functional bodies of Greater London Authority.

2. Central Services include court costs, local tax collection, and other core council services costs (such as IT).

3. Trading Services include the maintenance of direct labour and service organisations, such as civic halls, retail markets and industrial estates, and commercial activity.

• Source: COR 2019-20 to 2023-24

Figure 3: Local authority capital expenditure in real terms by service, England, 2019-20 to 2023-24

A line graph showing increased expenditure on Housing Services in the last three years, surpassing the level of expenditure on Highways and Transport in 2022-23.

Notes:

1. Other services includes expenditure on Social Care, Public Health, Culture & Related Services, Environmental & Regulatory Services, Planning & Development Services, Digital Infrastructure, Police Services, Fire & Rescue Services and Central Services.

6. Difference between 2023-24 provisional and final outturn

Table 3 details changes in expenditure between provisional and final outturn for 2023-24.

Provisional outturn figures are collected on a quarterly basis in the Capital Payments Return (CPR). For the first three quarters (CPR1-3) local authorities only provide all-service totals of capital expenditure and receipts. For the fourth quarter (CPR4) they provide annual outturn figures at the service level as well as financing and prudential data. The provisional outturn figures in Table 3 are from CPR4.

The level of capital spending varies between CPR4 and COR because local authority accounts are not yet finalised when CPR4 is collected.

Local authorities in England reported £29.7 billion of capital expenditure at final outturn, up £146 million (less than 1%) compared to the provisional outturn.

The increase in the final outturn compared to the provisional outturn was largely caused by an increase in expenditure on housing, which increased by £118 million (1%). This was largely driven by an increase in reported expenditure on housing from London Boroughs, which increased by £328 million (9%) compared to their provisional figures.

Expenditure on trading services increased by £266 million (38%) compared with provisional figures. Typically, this category shows more spend at final outturn due to recategorisation, as local authorities are reminded to report commercial acquisitions in this category. Other categories, notably central services, show lower spend at final outturn because of this; expenditure on central services decreased by £313 million (17%).

Total Capital Receipts increased by £252 million (8%) compared with provisional figures.

Table 3: Local authority total capital expenditure and total capital receipts: provisional and final outturns by service, England, 2023-24

Cash terms table, all monetary figures as reported (£ millions)

Service	Provisional	Outturn	Change	Percentage Change
Education	2,326	2,412	86	4
Highways & Transport	7,933	7,925	-8	0
of which GLA	1,875	1,874	-1	0
Social Care	543	506	-37	-7
Public Health	24	26	2	8
Housing	9,669	9,787	118	1
of which London Boroughs	3,676	4,004	328	9
of which GLA	818	830	12	2
Culture & Related Services	1,495	1,547	52	4
Environmental & Regulatory Services	1,302	1,353	51	4
Planning & Development Services	2,471	2,423	-48	-2
Digital Infrastructure	166	156	-10	-6
Police	846	835	-11	-1
Fire & Rescue Services	274	273	-1	0
Central services[1]	1,854	1,541	-313	-17
Trading[2]	694	960	266	38
Total Capital Expenditure	29,596	29,742	146	0
Total Capital Receipts	3,346	3,598	252	8

Notes:

1. Figures are from the ‘England grossed excluding double-counting’ total, which should avoid double counting due to any flow of grants, loans or other financial assistance or receipts between local authorities and/or between functional bodies of Greater London Authority.

2. Central Services include court costs, local tax collection, and other core council services costs (such as IT). Some local authorities report commercial activity within this category. New categories and guidance were issued in Spring 2018 encouraging such expenditure to be recorded under Trading Services.

3. Trading Services include the maintenance of direct labour and service organisations, such as civic halls, retail markets and industrial estates.

• Sources: CPR4 2023-24 and COR 2023-24

7. Financing of capital expenditure

Authorities finance their capital spending in a number of ways. A breakdown of the main elements of local authority capital funding is given below:

• Capital grants are provided by government departments and other organisations. The majority of governmental grants are not ring-fenced, giving authorities flexibility to choose how to spend this money, provided it is used for capital purposes.

• Prudential borrowing is borrowing freely undertaken by the local authority within the affordability limits stated by their auditors, as specified in the Local Government Act 2003.

• Capital receipts are from the sale of capital assets.

• Revenue resources can be used by local authorities to support capital spend. There is no restriction on revenue funds being used in this way, although accounting convention prevents capital resources being used to cover revenue spend.

As shown in Table 4 and Figure 4, capital grants continues to be the largest source of financing of capital expenditure in 2023-24, increasing to £12.8 billion, up £709 million (6%) in real terms compared to 2022-23. Prudential borrowing at increased slightly by £13 million (less than 1%) to £9.9 billion.

Capital grants made up 43% of total financing of capital expenditure in 2023-24 compared to 39% in 2022-23, whilst prudential borrowing made up 33% in 2023-24 compared to 32% in 2022-23.

Table 4: Financing of local authority capital expenditure by source: final outturn, England, 2019-20 to 2023-24

Real terms series, all monetary figures in 2023-24 prices (£ millions)

Source of Financing	2019-20	2020-21	2021-22	2022-23	2023-24
Total capital grants	9,794	10,461	11,570	12,112	12,821
Grants from central government departments	7,162	7,802	9,160	9,690	10,208
Grants from European structural & investment funds	56	56	58	92	49
Grants from private developers & leaseholders, etc.	1,405	1,240	1,302	1,348	1,526
Grants from non-departmental public bodies[1]	530	588	595	753	908
Grants from the National Lottery	65	55	42	43	36
Grants from Local Enterprise Partnerships	576	720	411	185	94
Total capital receipts	2,654	2,380	2,691	2,994	2,550
Total revenue resources	5,267	4,542	5,621	5,708	4,779
Housing Revenue Account	628	476	754	554	468
Major Repairs Reserve	2,143	1,957	2,059	1,996	2,069
General Fund (CERA)	2,496	2,109	2,808	3,159	2,242
Total prudential borrowing[2]	13,643	11,940	10,277	9,929	9,942
Loans & other financial assistance from Local Enterprise	32	13	11	13	35
Other borrowing & credit arrangements not supported by central government	13,610	11,927	10,264	9,917	9,907
Total resources used to finance capital expenditure	31,357	29,323	30,157	30,743	30,092

Notes:

1. Non-Departmental Public Bodies, organisations that are not government departments but which have a role in the processes of national government, such as the Sport England, English Heritage and Natural England.

2. The Prudential System, which came into effect on 1 April 2004, allows local authorities to raise finance for capital expenditure - without Government consent - where they can afford to service the debt without extra Government support.

3. From 2017-18 onwards, intra-local government transfers are being netted off for both expenditure and financing. However, as grants and loans made to other local authorities as part of expenditure may not equal the use of grants and loans from other authorities to finance expenditure within a financial year, financing and expenditure may not match.

• Sources: COR 2019-20 to 2023-24

Figure 4: Financing of local authority capital expenditure in real terms by source, England, 2019-20 to 2023-24

A line graph showing gradual increase of Total Capital Grants and gradual decrease of Total Prudential Borrowing over recent years, with Total Capital Grants being the highest category for the last three years.

8. Accompanying tables and open data

8.1 Symbols used

0 = zero or negligible

[x] = Data missing / not available

[z] = Not applicable

[r] = Revision

[b] = Discontinuity

8.2 Rounding

Where figures have been rounded, there may be a slight discrepancy between the total and the sum of constituent parts.

8.3 Tables

Accompanying tables are available to download alongside this release. These are:

Table 1a: Local authority capital expenditure & other transactions and capital receipts by category: forecast and final outturn, England, 2019-20 to 2023-24 (Real terms table, all monetary figures in 2023-24 prices)

Table 1b: Local authority capital expenditure & other transactions and capital receipts by category: forecast and final outturn, England, 2019-20 to 2023-24 (Cash terms table, all monetary figures as reported)

Table 2a: Local authority total capital expenditure by service: final outturn, England, 2019-20 to 2023-24 (Real terms table, all monetary figures in 2023-24 prices)

Table 2b: Local authority total capital expenditure by service: final outturn, England, 2019-20 to 2023-24 (Cash terms table, all monetary figures as reported)

Table 3: Local authority total capital expenditure and total capital receipts: provisional and final outturns by service, England, 2023-24 (Cash terms table, all monetary figures as reported)

Table 4a: Financing of local authority capital expenditure by source: final outturn, England, 2019-20 to 2023-24 (Real terms table, all monetary figures in 2023-24 prices)

Table 4b: Financing of local authority capital expenditure by source: final outturn, England, 2019-20 to 2023-24 (Cash terms table, all monetary figures as reported)

Table 5: Local authority total capital expenditure and total capital receipts: final outturn by service and category, England, 2023-24 (Cash terms table, all monetary figures as reported)

Table 6: Local authority prudential system information: final outturn by category, England, 2023-24 (Cash terms table, all monetary figures as reported)

Table 7a: Local authority prudential system information: net debt as at 31 March by class of authority, England, 2019-20 to 2023-24 (Real terms table, all monetary figures in 2023-24 prices)

Table 7b: Local authority prudential system information: net debt as at 31 March by class of authority, England, 2019-20 to 2023-24 (Cash terms table, all monetary figures as reported)

Table 8a: Local authority prudential system information: self-financed borrowing by class of authority, England, 2019-20 to 2023-24 (Real terms table, all monetary figures in 2023-24 prices)

Table 8b: Local authority prudential system information: self-financed borrowing by class of authority, England, 2019-20 to 2023-24 (Cash terms table, all monetary figures as reported)

Table 9: Local authority total value of assets, as at 31 March 2024: final outturn by category, England, 2023-24 (Cash terms table, all monetary figures as reported)

All data in this release are available at local authority level for:

COR A1: Total capital expenditure and receipts, England, 2023-24

COR A2: Further details of capital expenditure on Social Care, Grants & Loans, Roads, Street Lighting & Road Safety, and Section 16(2)(b) Direction, England, 2023-24

COR A3: Total acquisitions, disposals & impairment costs, England, 2023-24

COR B1: Financing of capital expenditure, England, 2023-24

COR B2: Grants from central government used to finance capital expenditure by authority, England, 2023-24

COR C: Prudential system information, England, 2023-24

COR D: Accumulated capital receipts and Major repairs reserve, England, 2023-24

COR E: Local authority trading companies, subsidiaries, associates and joint ventures by authority, England, 2023-24

COR F: Total value of assets held by the local authority directly, in trading companies and in subsidiaries, England, 31 March, 2023-24

2023 to 2024 supplementary data: Housing Revenue Account capital receipts, expenditure and financing

See the Local authority capital expenditure, receipts and financing webpage for all tables and workbooks, as well as related statistical releases.

9. 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 MHCLG is available via the Department’s website.