Scotland’s Chief Statistician has released figures on local government finance for 2023-24 showing that councils’ net revenue expenditure — the cost of delivering services each year — was £14.296 billion.

Education and Social Work were the services with highest net revenue expenditure, accounting for £6.960 billion and £4.604 billion respectively.

Net revenue expenditure on “Central Services” increased by 103.2% or £352 million between 2022-23 and 2023-24. Of this increase, £260 million was due to Equal Pay payments that were made by Glasgow City Council during 2023-24.

Councils’ capital expenditure — expenditure that creates the buildings and infrastructure necessary to provide services, such as schools and roads — was £3.689 billion in 2023-24.

“This was predominantly financed by grants and contributions of £1,704 million and borrowing of £1,640 million,” said the Scottish Government.

“Usable reserves are local authorities’ surplus income from previous years which can be used to finance future revenue or capital expenditure.

“At 31 March 2024, local authorities held £4,258 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 2023-24, as a result of the statutory flexibility granted by Ministers, local authorities made debt repayments of minus £67 million.

“That is, rather than repay debt, they received a windfall of £67 million as a result of the service concession flexibilities.”