The segmental analysis breakdown used in WGA is defined as central government, local
government, financial public corporations and non-financial public corporations, consistent with the sub-sector classification by the ONS. The tables below show the gross amounts reported for each sector and the consolidation adjustments to eliminate transactions and balances between WGA entities.
Central government
The central government sector comprises:
central government departments
the devolved administrations of Scotland, Wales and Northern Ireland
non-departmental public bodies
entities in the National Health Service
certain local government functions in Northern Ireland and Scotland, such as police, education and social services, which are carried out by central departments, non-departmental public bodies and health and social care trusts
The net pension liability for central government also includes the liability for teachers who are employed by local authorities.
Local government
The local government sector comprises:
all local authorities, police and crime commissioners, fire and rescue authorities, national park authorities and waste disposal authorities in England and Wales
local authorities in Northern Ireland, but not police, fire, education and social services, which are provided by central government
Non-financial public corporations Entities are included in this sector where:
they are classified as a market entity, an entity that derives more than 50% of its production cost from the sale of goods or services at economically significant prices.
Some charge for regulatory activities where these provide a significant benefit to the person paying the fee
they are controlled by central government or local government entities or other public corporations
they have substantial day to day operating independence so that they should be seen as an institutional unit separate from their parent entity
Financial public corporations
Entities in this sector are similar to non-financial public corporations as described above, but also engage in financial activities and financial transactions in the market. The financial public
corporations sector comprises the Bank of England and the Bank of England Asset Purchase Facility Fund Limited.
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Consolidation adjustments
In performing the consolidation, transactions and balances between WGA entities have been removed. This means, for example, Income Tax only shows the tax due from households and the private and not-for-profit sectors and does not include National Insurance contributions made by public sector employers. The largest consolidation adjustments relate to grants payable from central government to local government, and to the purchase and sales of goods and services between WGA entities. Removing these transactions result in consolidated adjustments to income and expenditure, and to assets and liabilities.
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Segmental reporting analysis 2014-15
Central
government Local government Non-financial public corporation
Financial public
corporations Consolidation
adjustments WGA
total
£bn £bn £bn £bn £bn £bn
Taxation revenue (612.4) (50.4) (0.8) - 96.9 (566.7)
Other revenue (146.0) (79.4) (13.6) (0.6) 147.0 (92.6)
Total operating revenues (758.4) (129.8) (14.4) (0.6) 243.9 (659.3)
Social security benefits 193.8 26.8 0.7 - (3.6) 217.7
Staff costs 142.3 70.0 5.2 0.2 (23.9) 193.8
Other expenses 496.8 93.7 14.1 0.2 (282.4) 322.4
Net expenditure/(revenue) before financing costs 74.5 60.7 5.6 (0.2) (66.0) 74.6
Net financing cost 72.1 11.1 0.4 0.1 (0.1) 83.6
Net loss on revaluations and disposals of assets and
Liabilities (0.6) (1.2) (4.3) - (0.1) (6.2)
Net expenditure/(revenue) for the year 146.0 70.6 1.7 (0.1) (66.2) 152.0
Property, plant and equipment 468.3 319.3 59.8 0.3 0.1 847.8
Other non-current assets 519.9 24.4 20.8 0.6 (289.1) 276.6
Current assets 328.3 52.6 27.9 455.5 (533.4) 330.9
Total assets 1,316.5 396.3 108.5 456.4 (822.4) 1,455.3
Current government borrowing and financing (235.2) - - - - (235.2)
Other current liabilities (390.3) (35.2) (3.1) (864.8) 725.5 (567.9)
Non-current government borrowing and financing (951.6) - - - 12.3 (939.3)
Net public sector pension liability (1,225.9) (265.9) (1.7) 0.3 (0.1) (1,493.3)
Other non-current liabilities (318.8) (44.5) (38.5) (2.6) 81.6 (322.8)
Total liabilities (3,121.8) (345.6) (43.3) (867.1) 819.3 (3,558.5)
Net assets/(liabilities) (1,805.3) 50.7 65.2 (410.7) (3.1) (2,103.2)
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Segmental reporting analysis 2013-14
Central government
Local government Non-financial public corporation
Financial public corporations
Consolidation adjustments
WGA total restated
£bn £bn £bn £bn £bn £bn
Taxation revenue (600.8) (52.8) (0.8) - 98.6 (555.8)
Other revenue (123.3) (107.4) (16.3) (0.6) 154.9 (92.7)
Total operating revenues (724.1) (160.2) (17.1) (0.6) 253.5 (648.5)
Social security benefits 189.3 26.6 0.6 - (3.1) 213.4
Staff costs 131.9 72.2 6.1 0.2 (24.6) 185.8
Other expenses 510.9 87.7 11.7 0.3 (291.8) 318.8
Net expenditure/(revenue) before financing costs 108.0 26.3 1.3 (0.1) (66.0) 69.5
Net financing cost 65.8 12.5 0.7 0.0 (0.2) 78.8
Net loss on revaluations and disposals of assets and liabilities (1.4) (0.1) 1.7 0.0 0.1 0.3
Net expenditure/(revenue) for the year 172.4 38.7 3.7 (0.1) (66.1) 148.6
Restatement (2.9)
Net expenditure/(revenue) for the year (restated) 145.7
Property, plant and equipment 446.4 306.5 59.1 0.3 - 812.3
Other non-current assets 476.2 21.8 11.7 1.0 (239.6) 271.1
Current assets 325.4 48.1 24.8 448.2 (515.0) 331.5
Total assets 1,248.0 376.4 95.6 449.5 (754.6) 1,414.9
Current government borrowing and financing (212.4) - - - - (212.4)
Other current liabilities (365.0) (33.1) (6.6) (828.2) 676.0 (556.9)
Non-current government borrowing and financing (883.8) - - - 0.1 (883.7)
Net public sector pension liability (1,066.9) (234.2) (2.1) 0.1 - (1,303.1)
Other non-current liabilities (301.4) (45.5) (24.9) (2.4) 74.8 (299.4)
Total liabilities (2,829.5) (312.8) (33.6) (830.5) 750.9 (3,255.5)
Net assets/(liabilities) (1,581.5) 63.6 62.0 (381.0) (3.7) (1,840.6)
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Note 3. Taxation revenue
2014-15
£bn
2013-14
£bn
Income Tax 163.1 162.1
National Insurance Contributions 97.2 97.3
Corporation Tax 40.3 39.6
Capital Gains Tax 5.7 3.9
Inheritance Tax 3.8 3.8
Bank Levy 2.7 2.2
Taxation revenue from direct taxes 312.8 308.9
Value Added Tax 113.9 108.2
Hydrocarbon Oils Duty 27.2 26.9
Excise duties 26.9 26.8
Stamp duties 13.5 12.9
TV licence fee income 3.1 3.1
Insurance Premium Tax 3.0 3.0
Air Passenger Duty 3.2 3.0
Betting and Gaming Duties 2.3 2.3
Lottery Income 1.8 1.6
Landfill Tax 1.1 1.2
Climate Change Levy 1.7 1.2
Petroleum Revenue Tax 0.1 1.1
Other indirect taxes 2.2 2.8
Taxation revenue from indirect taxes 200.0 194.1
Council Tax 28.2 28.5
National Non-Domestic Rates 25.7 24.3
Taxation revenue from local taxes 53.9 52.8
Total taxation revenue 566.7 555.8
The above figures are shown net of transactions between WGA entities.
The majority of direct and indirect taxes were collected by HM Revenue and Customs (HMRC). Total revenue reported by HMRC rose by £10.9 billion as a result of growth in the economy and reforms to combat avoidance, evasion and non-payment. Further information is available in HMRC’s 2014-15 accounts which can be found on its website.3
Income Tax did not include tax credits as these were categorised as an expense and included within benefits in Note 6.
3 www.hmrc.gov.uk
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Lottery income included monies generated by the National Lottery for good causes, such as arts, sports, community projects and the National Heritage.
Petroleum Revenue Tax reduced by £1.0 billion as significant falls in oil and gas prices combined with unplanned shutdowns and a continuing decline in production from older fields leading to a decrease in production and therefore tax income.
Other indirect taxes include the Aggregates Levy of £0.4 billion (2013-14: £0.3 billion), regulatory fees £0.2 billion (2013-14: £0.2 billion) and capital taxes (UK Swiss Agreement) of £0.1 billion (2013-14: £0.5 billion).
Local taxes were collected by local authorities and details are available in the individual accounts.
The majority of tax receivables were estimated by HMRC using a statistical based model as outlined in the accounting policy notes 1.11.1 and 1.22.3. As described in Note 1.22.3, HM Revenue and
Customs consider that the overall uncertainty is expected to be some £4 billion in either direction, equivalent to less than one per cent of the total revenue reported in the Statement of Revenue and Expenditure. Further information is set out in the 2014-15 accounts of HM Revenue and Customs.