Total net current expenditure by English local authorities was £109.1 billion in 2017-18, 1.5% lower than in 2016-17.
Figures released by the Ministry of Housing, Communities and Local government showed that the largest reduction came in education, which was 3.3% lower than the previous year.
Adult social care spending rose by 2.8% to £15.3bn during the year.
The proportion of centrally distributed income has fallen from 67% of all local authority revenue expenditure in 2013-14 to 54% in 2017-18, the department said.
