Gross Value Added and Household Disposable
Income per Head
Value Added (GVA)
estimates published here have been calculated
on the basis of the European System of
Accounts 1995 (ESA95). Under this system the
term Gross Value Added is used to denote
estimates that were termed as Gross Domestic
Product (GDP) at basic prices in previous
publications. The GVA estimates included
incorporate revisions from previous releases
and for all years back to 1989. In addition,
the three years 1997 to 1999 are provisional
estimates and, as such, may be subject to
revisions are described in 'Regional Accounts
1999: Part 1' by Alex Clifton-Fearnside in
Economic Trends No 568, The Stationery Office,
Regional Competitiveness Indicators now
contain two separate indicators of economic
activity which fall within the broad
definition of ‘GVA’. The data termed
‘Gross Domestic Product’ (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 which appear in Table 4(b) are based on a
single survey: The Annual Census of
Production/Annual Business Inquiry (ACOP/ABI).
GVA estimates taken from the regional economic
accounts are a much broader measure of a
region's economic activity than the ACOP/ABI
GVA series. In addition, GVA from regional
economic accounts is consistent with the
latest annual estimates published in the UK
National economic accounts and latest European
Household Disposable Income (HDI)
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
organisations which provide a service to
households, for example charities and most
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
contributions. The HDI series is compiled
under the latest ESA95 framework. The latest
set of Household Sector income estimates
included in this release incorporate some
further revisions to both the national and
regional totals arising for the continual
improvement of ONS methods. See 'Regional
Accounts 1999: Part 2', Alex
Economic Trends No 573, The Stationery Office,
Labour Productivity in Manufacturing and Other
is calculated by dividing residence based GVA
for, by the number of employees within each of
these sectors. Estimates of employment in the
manufacturing and other sectors are taken from
the new Annual Business Inquiry (ABI) employee
jobs series whilst the estimates of GVA are
drawn from the regional economic accounts
produced by the ONS.
count of employees includes both full and part
- time employees within each sector. Temporary
employees working during the survey period are
included in the estimates. The figures do not
include the agriculture, forestry and fishing
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.
- 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, whilst in areas
with net out-commuting such as the East of
England, the figure could be overstated
Proportion of Income Support Claimants
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 also whose income is lower than what
is considered necessary to live on.
Manufacturing Investment and Output by UK and
Capital Expenditure is calculated by adding to
the value of new building work acquisitions
less disposals of land and existing buildings,
vehicles and plant and machinery.
the present time the latest available data
refer to 1997.
With the launch of the new Annual
Business Inquiry (ABI) in April 2001 (see James
Partington, 'The Launch of the Annual Business
Inquiry', Labour Market Trends, Vol 109, No 5,
Stationery Office, May 2001), it is
expected that it may now be possible to update
some of these data in the near future.
At the moment, however, regional ABI
investment data are still being quality
assured by the ONS.
current data is for manufacturing only. In the
future it is expected that information
covering the services sector will become
available, again from the Annual Business
Exports of Goods
trade statistics were created to meet the
needs of the devolved administrations of
Scotland, Wales and Northern Ireland, as well
as the nine Government Office Regions and
Regional Development Agencies in England. HM
Customs and Excise published them for the
first time in January 2000 with details of
regional exports of goods introduced in
data are taken from Customs declarations
submitted in respect of trade with countries
outside the European Union and Supplementary
Declarations submitted under the
‘Intrastat’ system for trade with
countries in the EU. Trade is allocated 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
quarterly totals of the value of Regional
Trade in Goods Statistics do not equate to the
totals already published as the UK-wide
Overseas Trade Statistics. Certain goods, such
as North Sea crude oil, ships and aircraft
stores, and those not in free circulation,
that are shipped to EU countries using
traditional Customs declarations, cannot be
allocated to a UK region. Exports relating to
overseas companies, registered for VAT in the
UK, but with no place of business in the UK
have been excluded. Also trade below the
‘Intrastat’ reporting threshold cannot be
allocated to a region. In addition, some
exports to countries outside the EU cannot be
allocated to a region because the VAT
registration numbers have not been properly
statistics refer to goods that have crossed
the UK frontier. Customs and Excise do not
receive information in respect of goods that
move wholly within the UK.
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.
should be noted that the STES series was
revised by ONS when the ABI employee jobs
series was introduced in April 2001. Because
of this the estimates provided in Chart 5(b)
and in Table 5(a) are not directly comparable
with those published previously.
of average earnings are drawn from the New
Earnings Survey and include remuneration for
overtime worked during the survey period, but
not other payments such as profit shares and
Employment and Employee Jobs
7(a) and 7(b) cover the number and percentage
of people 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 seasonally adjusted.
7(c) shows the number and percentage of
employee jobs on a workplace basis, i.e.,
where jobs are counted at the place of work,
rather than where the employee lives. The data
are provided by the STES, which measures the
number of employee jobs within each region
(not including self–employment), by quarter.
STES series is now benchmarked to the ABI
employee jobs series introduced by the ONS on
the 11th April 2001. These data
supersede the Annual Employment Survey (AES)
estimates in England, Scotland and Wales but
not Northern Ireland. For an account see
Partington (op cit.).
is important to note that revisions to the AES
series and introduction of ABI employee jobs
are not yet reflected in either national or
regional GVA and Household Sector income
totals. The ABI/AES revisions will be included
in these series from 2002 onwards.
Unemployment Including Long-term Rates
ILO definition of unemployment 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
claimant count is based on the number of
people claiming unemployment related benefits
before October 1996 and the Jobseekers
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.
April 1999 onwards, the long-term claimants
series consists of computerised claims only,
and excludes clerically processed claims that
amount to less than 1 per cent of all claims.
National Learning Targets (England only)
are five National Learning Targets for
England, created by the former Department for
Education and Employment and the National
Advisory Council for Education and Training
Targets. These aim that by 2002 (those used in
these Indicators are in bold):
Targets in Literacy and Numeracy
of 11 year-olds will reach at least level 4 in
the Key Stage 2 Mathematics tests, and
80% of 11 year-olds will reach at least level
4 in the Key Stage 2 English test.
Targets for 16 year-olds
of 16 year-olds will achieve 5 GCSEs at grades
A* - C or equivalent, and
95% of 16 year-olds will achieve at least one
GCSE grade A* - G or equivalent.
Targets for Young People
of 19 year-olds will be qualified to at least
NVQ level 2 or equivalent, and
60% of 21 year-olds will be qualified to at
least NVQ level 3 or equivalent.
Targets for Adults
of economically active adults will be
qualified to at least NVQ level 4 or
50% of economically active adults will be
qualified to at least NVQ level 3 or
To reduce non-learners by 7%.
Targets for Organisations
of organisations with 50 or more employees
will be recognised as Investors in People, and
10,000 organisations with 10-49 employees will
be recognised as Investors in People.
Investors in People
baseline for calculating the proportion of
organisations with IIP recognition was
calculated by the former Training and
Enterprise Councils (now Learning and Skills
Partnerships) who estimated the number of
organisations with 50 or more and 200 or more
employees in their areas of coverage.
Business Registration and Survival Rates
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 (£53,000 during 2000) may decide
not to register for VAT and so would not be
included in these data.
data are compiled from the Inter-Departmental
Business Register (IDBR). The IDBR is a
structured list of nearly 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.
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.
‘survival’ rates contained in the Table
11(b) 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
deregistrations are a strong correlate of the
underlying trends in business ‘births’ and
High Technology Industry and R&D Activity
survey of Business Enterprise Research and
Development is conducted by the ONS annually.
It is based on a sample of around 4,000
businesses across the UK who are known to
perform research and development activity.
This includes all of the ‘large’ R&D
performers, plus a sample of smaller
businesses who are deemed as ‘likely’
R&D performers. Government organisations,
higher education establishments and registered
charities are not included within the survey
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).
sample size and response rates (around 94% for
the latest survey) are sufficient to allow
dissemination of R&D activity within
businesses down to regional and sectoral
level. This source is included in the Regional
Competitiveness indicators for the first time
whilst ABI estimates of regional investment by
firms are still undergoing quality assurance.
Technology Industry Employee Jobs
estimates are now drawn from the ABI/Revised
AES employee jobs series, and Northern Ireland
Census of Employment. The estimates for Great
Britain are not comparable with estimates
published in previous editions.
of high and medium high technology jobs for
Northern Ireland are included in the Regional
Competitiveness Indicators for the first time.
definition of high technology industry itself
is based on that specified by the OECD (1997).
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.
machinery and computers
13(b) on the mode of transport used to travel
to work is defined as follows:
- car, van, mini-bus, motorcycle.
- bus, coach, national rail and underground.
Industrial Property and Office Rental costs
is available for the following types of
1 - Small starter units, 25 sq.m - 75 sq.m.
Steel framed, concrete block or brick
construction, often built in terrace layout
and let on weekly terms.
2 - Nursery units, 150 sq.m - 200 sq.m. Steel
framed on concrete base, concrete block or
brickwork to 2 metres with metal PVC covered
cladding above. Eaves height 3.75 to 4.5
metres with lined roof. Limited or no office
content and common parking and loading areas.
3 - Industrial / Warehouse units, circa 500
sq.m. 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% office content. Detached on
own site with private parking & loading
4 - Industrial / Warehouse units, circa 1000
sq.m. Steel framed on concrete base, concrete
block or brickwork to 2 m, metal PVC covered
cladding above. Eaves height up to 7.6 metres
with lined roof. 10-15% office content.
Detached on own site with private parking
& loading facilities.
5 - Converted ex-mill units. Ground floor unit
converted from 19th century multi - floor
ex-mill or similar building of 4-5 storeys.
Brick construction with tile/slate roof. Unit
of circa 150 sq.m with heating from central
piped water system. Electric goods lift to
upper floors and sprinklers all levels. Tenant
responsible for internal repairs and
insurance. Type 5 found only in certain areas
of the country.
3 is used as the indicator.
is available on three types of Office
1 - Town Centre location. Self contained suite
over 1,000 sq.m 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.
2 - As Type 1 but suite size in range of 150
sq.m - 400 sq.m.
3 - Converted former house usually just off
town centre. Good quality conversion of
Georgian/Victorian or similar house of
character. Best quality fittings throughout.
contained suite in size range 50 sq.m - 150
sq.m with central heating and limited car
Type 1 is used as the indicator.
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