1: Overall Competitiveness
Gross Value Added and Household
Disposable Income per Head
Value Added (GVA) and Household Sector
Disposable Income (HDI) measure different
aspects of a region’s income.
GVA gives an indication of the value of
the economic activity generated within an
area, while HDI provides an indication of the
income received by resident households and
non-profit organisations that serve
regional GVA estimates included in this
publication are those published by the Office
for National Statistics (ONS) on 1st
The revised regional GVA estimates
published on 21st November 2002
were withdrawn owing to concerns over the
quality of the component data used to
calculate the figures. ONS report that revised
regional GVA estimates from 1989 to 2001 will
be published during spring 2003 (see ONS
Release of 10 December 2002).
measures the economic activity generated
within a region through the production of new
goods and services. Table 1(a)i and
detail GVA at current prices in £s per head
and £s per head indexed to the UK average.
1989 and 1999, London consistently had the
highest GVA per head of population, growing
from £11,634 in 1989 to £18,979 in 1999
(varying between 142 and 148 per cent of the
UK average during these years).
Map 1(b) shows that the greatest rate
of increase over the ten years was in the
South East, where GVA per head at current
prices rose by just under 77 per cent.
GVA per head in Northern Ireland grew
at the second highest rate, up by 71 per cent.
The North East, by contrast, was the
slowest growing, increasing by around 52 per
cent during this time.
Over the same period, the Retail Price
Index (RPI) increased by 44 per cent.
per Hour Worked
estimates in Table 1(b) and Chart 1(b)
overcome one of the issues affecting GVA per
head of population as an indicator. The GVA
generated within a region - Table 1(a) - is
workplace based, while the population estimate
is based on persons residing within a region.
Thus commuting may distort the GVA per
head estimates for regions with a high level
of inward commuting, such as London, and could
artificially inflate the GVA per head
Table 1(b), GVA is presented relative to the
number of hours worked in the region, rather
than in terms of per head of population
London, at 116.7 per cent in 1999, is
greater than the average (UK=100) but the
differences between regions are not as marked
as for GVA per head of resident population.
The lowest figure for relative GVA per
hour during 1999 was for Northern Ireland, at
the English regions, the lowest figures were
recorded in the West Midlands and the South
West at 90.3 and 90.4 respectively.
Household Disposable Income per Head
household income is defined as
total household income (including benefits)
less current taxes on income, wealth and other
While GVA gives an indication of the
value of all economic activity in a given
area, Household Disposable Income (HDI), (Tables 1(c)i and
1(c)ii), measures what
financial resources households have available
to spend on goods and services.
1999, disposable household income per head of
population in London at £12,207 was 20
percentage points above UK income per head (£10,142).
Wales had the lowest relative income at £8,870
per head, 13 percentage points below the UK
average. Between 1995 and 1999, the index of
income per head for Wales fell by 4 points,
the largest fall in any UK region or country
during this time.
Labour Productivity in Manufacturing
and Other Industries
is used as an indicator of competitiveness
within the manufacturing and other sectors
(including services, fuel extraction,
electricity and gas supply, but not
agriculture, forestry and fishing).
Tables 2(a) and
2(b) are calculated as
GVA per employee.
in GVA per manufacturing employee was highest
in Yorkshire and the Humber at 15 per cent
between 1995 and 1998, followed by the East
Midlands (14.6%), West Midlands (13.9%) and
the East of England (12.9%). Growth in GVA per
manufacturing employee in other regions was
below Retail Price Index (RPI) inflation (11
per cent over this period).
in the other sectors has been somewhat
stronger, with GVA per employee in both the
East and London growing by just over 17 per
cent between 1995 and 1998.
Yorkshire & the Humber, East
Midlands, South East, South West and Scotland
grew at a faster rate than RPI inflation
during this time.
is important to consider the value of these
indicators in the context of the mix of
industries between regions.
Some industries are highly labour
intensive and so may have relatively low
productivity figures when compared with the
more capital-intensive industries.
2 illustrates the value of GVA per employee
for the manufacturing and other sectors in the
Investment and Output by UK and Foreign
series is included as an indicator of the
importance of both domestic and foreign
investment to the industrial base of each
region. Tables 3(a) and
3(b) show the trends
in the figures for the investment (measured by
net capital expenditure of firms) and output
(measured by gross value added) of
to issues concerning the quality of the sub -
national ABI/2 estimates (for 1998 to 2001)
raised by the Office for National Statistics,
the data were not available in time for the
January 2003 issue of ‘Regional
Competitiveness and State of the Regions’.
The historic Annual Census of Production data
to 1997 have been included for the time being
in Table 3.
Exports of Goods
value of exports produced is dependent on the
size of a region’s economy and it is
important to note that the production of some
goods (for example motor vehicles), can
involve several separate stages of production
that may take place across more than one
region, therefore these figures should
therefore be interpreted carefully. This indicator does not include the value of the export of
4(a) provides the value of exports of
goods from each region in each quarter between
2000 and the second quarter of 2002.
4(b) provides an estimate of the number of
companies in each region exporting to the
European Union (EU) and outside the EU from
2000 to the second quarter of 2002.
The counts of companies exporting to
the EU and rest of the world in Table 4(b) are
not wholly comparable. See Definitions for
4(b) and Chart 4(b) illustrate the value of
exports for quarters covering 2000 – 2001
and 2001 - 2002 per employee job within each
region. Between Autumn 2001 and summer 2002, the value of exports per
employee job was highest in Scotland at just
over £8,900 (some 41 per cent above the value
of exports per job across the UK as a whole).
The East was next highest with exports
per job at just over £8,650.
Yorkshire and the Humber had the lowest
value at just over £4,300 per employee job,
less than half of the value per job in
4(c) shows the distribution of regional
exports to the main world regions.
During 2001, the EU was the largest
recipient of exported goods in all of the UK
regions with nearly 60 per cent of UK exports
as a whole received by EU countries, over 3
times more goods than were exported to the
UK’s next largest recipient, North America.
| index |
Home - Search - Site Map - Contact Us