Definitions ANNEX 1

General � Effect of New Census 2001 Population Levels

The Labour Force Survey (LFS) and associated population estimates for Government Office Regions used in this edition are not consistent with the latest Census 2001 population levels. The 2001 Census Day population recorded for the United Kingdom was 1.0 million lower than the previous mid-2000 figure. As a result, sub - national LFS estimates for the UK will be re � weighted by the Office for National Statistics to the 2001 Census population level. This will lead to revisions to some of the regional data in Sections 6, 7, 9, 11 and 13, with the re - weighted figures available by Summer 2003.

1. Gross Value Added and Household Disposable Income per Head

Gross Value Added (GVA) 

The estimates published here have been calculated on the basis of the European System of Accounts 1995 (ESA95). GVA is the major component of gross domestic product (GDP). Under ESA95 the difference between GVA and Gross Domestic Product (GDP) is that GDP includes taxes (less subsidies) on products (mainly Value Added Tax) while GVA does not. ONS does not presently regionalize taxes on products.

These indicators now contain two separate measures of economic activity that fall under the broad definition of �GVA�. The data termed GDP in previous publications are taken from the regional economic accounts, produced by ONS, which are calculated based on a series of economic and labour market surveys. The second set of GVA data that appear in Tables 3(a) and 3(b) were based on a single survey: The Annual Census of Production (ACOP), which in future will be replaced by data from the Annual Business Inquiry / 2 (ABI/2).

The GVA estimates taken from the regional economic accounts are a much broader measure of a regional economic activity than the ACOP series.

Gross Household Disposable Income (HDI)

The household sector includes traditional households within the UK in addition to people living in institutions such as retirement homes, hospitals and prisons. This sector also includes the activity of the non-profit making units that provide a service to households, for example charities and most universities. 

Disposable household sector income is defined as total household income less payments of current taxes on income and wealth (such as income and property taxes) and social contributions such as pension and National Insurance deductions. This series is compiled under the latest ESA95 framework.

It should be noted that neither GVA or disposable household income are the same as �wealth�. It is possible for a household to possess substantial material wealth and assets while receiving a comparatively low level of income.

2. Labour Productivity in Manufacturing and Other Industries

This is calculated by dividing residence-based GVA for the manufacturing sector and the �other industries� sector, by the number of employees within each of these sectors. Estimates of employment in the manufacturing and other sectors are taken from the Annual Business Inquiry (ABI) employee jobs series while the estimates of GVA are drawn from the regional economic accounts produced by the ONS.

The count of employees includes both full- and part-time employees within each sector.  The figures do not include the agriculture, forestry and fishing sectors.

The GVA estimates are residence-based and differ from the estimates included in Indicator 1 as the earnings of employees who commute across regions to work are allocated to the region where they live and not where they work.  In practice, residence and workplace-based GVA differ only in London, the South East, and the East of England, as ONS do not make adjustments for other regions.

Residence-based GVA from the regional economic accounts have the advantage of providing estimates for a range of industries and for a longer time series than the equivalent ABI estimates at the moment.  However, the figures contained in Tables 2(a) and 2(b) were calculated using a workplace-based measure of employee jobs (see Section 7 for details). Using residence based GVA and workplace based employee jobs means that the estimates for regions with high levels of in commuting, such as London, may be deflated, while in areas with net out-commuting such as the East of England, the figure could be overstated slightly.

3.         Investment and Output by UK and Foreign-Owned Companies

Gross value added (GVA) is used to gauge the output of foreign owned companies. For a further description of GVA, please refer to section 1 of the Definitions.

Net Capital Expenditure is used as a proxy for investment and is calculated by adding to the value of new building work acquisitions less disposals of land and existing buildings, vehicles and plant and machinery.

For the time being, these data continue to be taken from the Annual Census of Production.  The latest available data are from 1997.  The data are for the manufacturing sector only. It is expected that new data covering both regional manufacturing and services will be available from the Annual Business Inquiry/2 in time for the next edition of Regional Competitiveness and the State of the Regions.

4.                  Exports of Goods

The counts contained in Table 4(b) of companies exporting to EU and the rest of the world are not fully comparable.  Company details for businesses� export transactions with non-EU countries are mandatory and are automatically recorded by HM Customs and Excise. The counts for exports to non-EU countries are taken from these. However, because of the Single European Market, there is far less recording of companies exporting to the EU.  Supplementary declarations for companies exporting to the EU are recorded through the Intrastat system, which only picks up businesses exporting goods with a value in excess of (during 2002) �235,000 to the EU.  Hence, the company counts of EU exporters will be artificially low as compared to the count for exporters to the rest of the world. Note that companies who export to both EU countries and the rest of the world will appear more than once in the company count, that is, in both parts of table 4(b). 

Comparisons between regions should be interpreted with care because the value added of an export product may have been generated in areas other than the region from which the item was actually exported.

Export trade is assigned to a region through the postcode associated with a company�s VAT registration.  Some adjustments have been necessary for exports to the EU to ensure that manufacturing that takes place at branch premises is properly allocated to the region where the branch is situated.  Exports to countries outside the EU already contain a regional coding.

Exports of goods by employee job are a DTI estimate using Customs and Excise data for value of exports of goods and employee jobs as a denominator. The employee jobs data were drawn from the workplace-based Short - Term Employment Survey (STES) produced by the Office for National Statistics.

  5.         Average Earnings  

Estimates of average earnings are drawn from the New Earnings Survey (NES) and include remuneration for overtime worked during the survey period, but not other payments such as profit shares or annual bonuses.

NES data are collected in April of each. The estimates may be affected by seasonality.

6.         Employment and Employee Jobs

Tables 6(a) and 6(b) detail the number and percentage of people of working age in employment who are resident in each region or country.  The data contained in both tables are drawn from the Labour Force Survey and are not seasonally adjusted. It should also be noted that at the moment, the estimates in Tables 6(a) and 6(b) are only consistent with the new 2001 Census population at the UK level. This means that the regional totals in Table 6(a) will not sum to the UK totals. It is expected that regional results consistent with the latest Census will be available in time for the next edition of Regional Competitiveness and the State of the Regions.

The data contained in Table 6(c) are drawn from the Short�Term Employment and Turnover Survey (STES) carried out by the ONS and show the number and percentage of employee jobs on a workplace basis. The STES measures the number of employee jobs on a quarterly basis and unlike the data in Tables 6(a) and (b) does not include self-employed people. Additionally, the data for regions in Table 6(c) may not sum to UK or England totals because of approximations in apportioning estimates collected on a national basis.

7.         Unemployment

This is based on the International Labour Organisation definition of unemployment which includes as unemployed; all those who are out of work, want a job, have actively sought work in the last four weeks prior to interview and are available to start work within the next fortnight; or out of work and have accepted a job they are waiting to start in the next fortnight.

The data are not adjusted for seasonal variation, and are only consistent with the new Census 2001 recorded population at the UK level.

8.         Claimant Count

The Claimant Count is based on the number of people claiming unemployment-related benefits before October 1996 and Jobseeker�s Allowance (JSA) thereafter at Employment Service offices on a particular day each month who were out of work, available for, capable of and actively seeking employment.

Claimant Count rates express the number of claimants of Jobseeker�s Allowance as a percentage of the corresponding mid-year estimate of workforce jobs in the area (plus claimants of Jobseeker�s Allowance). The number of workforce jobs is comprised of employee jobs, agricultural jobs, HM armed forces, self � employed and persons on government � supported training schemes.

9. National Learning Targets (England only)

There are five National Learning Targets for England, created by the former Department for Education and Skills and the National Advisory Council for Education and Training Targets. These aim that by 2002:

1          National Targets for 16 year-olds

50 per cent of 16 year-olds will achieve 5 GCSEs at grades A* - C or equivalent, and;
95 per cent of 16 year-olds will achieve at least one GCSE grade A* - G or equivalent.

2          National Targets for Young People

85 per cent of 19 year-olds will be qualified to at least NVQ level 2 or equivalent.
60 per cent of 21 year-olds will be qualified to at least NVQ level 3 or equivalent.

3          National Targets for Adults

28 per cent of economically active adults will be qualified to at least NVQ level 4 or equivalent.
50 per cent of economically active adults will be qualified to at least NVQ level 3 or equivalent.

10.       Proportion of Income Support Claimants

Income support claimants can be grouped into elderly, lone parents, disabled and other.  Income support can be paid to a person who is aged 16 or over, is not working 16 hours or more a week and whose income is lower than what is considered necessary to live on. 

11.       Income Deprivation

Table 11 and Chart 11 provide the percentage of the population within families that are dependent on Income Support (IS) benefit. The percentage for each of the English regions is included alongside the proportion for the 20 per cent of the population living within the �most deprived� wards within each region and England.

For this indicator ward level deprivation has been defined according to the Indices of Multiple Deprivation 2000 (IMD 2000). The IMD 2000 is an index for areas in England consisting of 33 indicators of deprivation that fall under 6 broad dimensions: income, employment, health and disability, education training/skills, housing and access to services.

For this indicator, the number of IS �dependants� reflect the number of persons living in families where at least one member is receiving income support benefit. The information are derived by the DTI using the Income Strand of the IMD 2000 as well as mid � 1998 population estimates taken from the Neighbourhood Statistics web site.

12.       Business Registration and Survival Rates

VAT registrations are not synonymous with business start-ups; some registrations are the results of changes in ownership or legal status of a business. In Great Britain the total number of business start-ups is estimated to be around twice the number of registrations for VAT. It is estimated that between 1995 and 1999 there were around 530,000 businesses created.

Businesses with turnover below the VAT threshold (�54,000 during 2001) may decide not to register for VAT for a variety of reasons, and so would not be included in these estimates.

The data are compiled from the Inter-Departmental Business Register (IDBR). The IDBR is a structured list of around 2 million units in the UK available for the selection, mailing and grossing of statistical inquiries. It is supplied by the ONS and is mainly used as a sampling frame for official business surveys.

The estimates refer to the location of the head office or main centre of business activity.  If a new factory owned by a business is located elsewhere in the UK then it does not appear as a new registration.

The adult population estimates used as the denominator for calculating the indices and rates for all years in Tables 12(b)i and 12(b)ii are a 1999 mid-year figure that is not yet consistent with 2001 Census estimates.

Care should be taken when comparing the rates of VAT registrations/population or stock of businesses between regions since the estimates can be influenced by variations in commuting, industry mix and differences the profile of businesses between regions as well as �actual� changes over time. In addition, there are areas where the stock of businesses is relatively low, so the rate of business formations could be artificially inflated. 

The �survival� rates contained in the Table 12(c) are not �actual� business closures. Firms can be removed from the VAT register for a variety of reasons including: falling turnover, mergers, take - over and relocation in addition to the business actually ceasing trading. However registrations and de-registrations are a strong correlate of the underlying trends in business �birth� and �death� rates.

13.       High Technology Industry and Research & Development Activity

The survey of Business Enterprise Research and Development (BERD) is conducted by the ONS annually. It is based on a sample of around 4,000 businesses across the UK that are identified as performing research and development (R&D) activity by the Annual Business Inquiry. Included are all �large� R&D performers, plus a sample of smaller businesses that are deemed as �lesser� R&D performers. Government organisations, higher education establishments and registered charities are not included within the survey sample.

It is important to note that this survey assesses the value of R&D performed by businesses in the UK, irrespective of where the funding for the R&D activity came from (i.e. business, government or foreign funding). It also covers the R&D activity by UK firms on UK territory outside of the mainland (i.e. North Sea oil exploration).

The sample size and response rates (at around 94 per cent) are sufficient to allow dissemination of R&D activity within businesses down to regional and sector level

High Technology Industry Employee Jobs

These estimates are drawn from the Annual Business Inquiry/1 and the Northern Ireland Census of Employment.

Estimates of high and medium-high technology jobs for Northern Ireland are included in the Regional Competitiveness Indicators for the first time.

The definition of high technology industry itself is based on that specified by the Organisation for Economic Cooperation and Development (OECD) in 1997.

The following table shows the sectors that are covered by the definition �high-tech� and �medium high-tech� and which Standard Industrial Classification 1992 (SIC92) class or sub � class corresponds to each.



High Tech




Office machinery and computers






Medium High Tech


Scientific Instruments


Motor Vehicles


Electrical Machinery



24.0 (excluding 24.4)

Other Transport Equipment

35.2, 35.4, 35.5

Non-Electrical Machinery


14.       Transport

Chart 14(b) on the mode of transport used to travel to work is defined as follows:

Private - car, van, mini-bus, motorcycle.
Public - bus, coach, national rail and underground.

15.       Industrial Property and Office Rental costs

Type 3 - Industrial / Warehouse units:  Steel framed on concrete base, concrete block or brickwork to 2m, metal PVC covered cladding above.  Eaves height 4.3-5.5m with lined roof.  10-15 per cent office content.  Detached on own site with private parking & loading facilities.

Type 1 Office Accommodation: Town Centre location. Self contained suite over 1,000 m2 in office block erected in last 10 years, good standard of finish with a lift and good quality fittings to common parts. Limited car parking available.

16.       Derelict and Vacant Land

The information covering previously developed land now vacant or derelict are drawn from the National Land Use Database (NLUD) see: These data are based on a periodic survey of unitary and local authorities covering vacant and derelict sites and other previously developed land and buildings that may be available for redevelopment. Latest data refer to 2001.

Table 16 covers several distinct types of vacant or derelict land:

Previously developed vacant land: Land previously developed and is now vacant which could be developed without treatment. Treatment includes: demolition, clearing of fixed structures/foundations levelling etc.

Derelict land and buildings:  Land so damaged by previous industrial or other development that it is incapable of beneficial use without treatment. This includes abandoned or unoccupied buildings in an advanced state of disrepair.

All land that is unused or may be available for redevelopment: Comprises previously developed vacant and derelict land: vacant buildings; land or buildings currently in use, which are allocated in a local plan for any developed use, have planning permission for any use (including single residential dwellings with planning permission for at least one additional dwelling) or with known potential for redevelopment.

Definitions ANNEX 2

Enquiries and Links to Relevant Web Pages                                               

Tables 1(a) to 2(b):  Regional Economic Accounts, Office for National Statistics.

E-Mail:             [email protected]
Web Link:

Tables 3(a) and 3(b):  Annual Business Inquiry/2 Results and Analyses, Office for National Statistics.

E-Mail:             [email protected]
Web Link:

Tables 4(a) to 4(c):  Information Management Division, HM Customs and Excise.

E-Mail(enquires via internet):
Web Link:                      

Tables 5(a) to 5(c):  New Earnings Survey, Office for National Statistics and Department for Enterprise, Trade & Investment Northern Ireland.

E-Mail (GB):                [email protected]
Web Link (GB): 
Web Link (NI):  

Information can be downloaded for free at:  

Tables 6(a) to 6(c):  Labour Market Division, Office for National Statistics.

E-Mail:             [email protected]
Web Link:

Information can be downloaded for free at:

Tables 7 to 8(b):  Labour Market Division, ONS

E-Mail:             [email protected]
Web Link:

Information can be downloaded for free at:

Tables 9(a) to 9(d):  Department for Education and Skills analyses of the Labour Force Survey.

Web Link:
Information can be downloaded for free at:

Tables 10(a) to 10(e):  Department for Work and Pensions (GB) and the Department for Social Development (Northern Ireland).

E-Mail  (enquires via internet):
Web Link:                      

Table 11: Neighbourhood Renewal Unit (ODPM) and the Neighbourhood Statistics Unit, (ONS)

E-Mail:             [email protected]
Web Link:  

Tables 12(a) to 12(c):  Small Business Service, DTI.

Web Link:

Tables 13(a) to 13(b): Regional and Local Statistics Division (Regional GVA) and Financial/Accounting Surveys Division (Regional Research and Development).

E-Mail (GVA):             [email protected]
Web Link (GVA):

Web Link (R&D):  

Tables 14(a) to 14(c): Labour Market Division, ONS

E-Mail:             [email protected]
Web Link:

Tables 15(a) to 15(b):  Valuation Office Agency, Inland Revenue.

Web Link:

Table 16:
  National Land Use Database and the Office of the Deputy Prime Minister.

E-Mail:             [email protected]
Web Link

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