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GVA for Local Enterprise Partnerships, 1997-2012

Released: 11 April 2014 Download PDF

Abstract

This release provides data on economic output, as measured by nominal gross value added, for each local enterprise partnership (LEP). A time series with data back to 1997 is included while the latest data available are for calendar year 2012. The data have been produced to be consistent with the existing ONS regional gross value added (income approach) data that are published annually in December for the NUTS geographies. These LEP GVA data carry the National Statistics badge.

Key Points

  • ONS is publishing, for the first time, data on economic output (gross value added) for each English local enterprise partnership (LEP).  The data are consistent with the data in the existing ONS Regional GVA (Income Approach) release.

  • Data are available for 1997 to 2012.  Over this period, the LEP areas with the highest percentage increases in GVA were London, Enterprise M3, and Oxfordshire.  The lowest percentage increases in GVA occurred in the LEP areas of Black Country, Humber, and Stoke-on-Trent and Staffordshire.

  • Over the more recent period of 2007-2012, that covers the economic downturn and gradual recovery, the LEP areas with the highest percentage increase in GVA were Oxfordshire, London, and Buckinghamshire Thames Valley.  The lowest percentage increases in GVA were in the LEP areas of Humber, York and North Yorkshire, and Cornwall and the Isles of Scilly.

  • Gross value added by industry data show that the ‘Information and communication’ sector provided 22% of output in Thames Valley Berkshire in 2011 compared with 12% or less in all other LEPs. Similarly, the ‘Financial and insurance activities’ sector provided 20% of output in London in 2011 but 10% or less in all other LEPs. 

  • Cumbria and Humber were the LEPs for which manufacturing provided the highest share of overall GVA, 25% in each case, in 2011.

  • GVA per head in 2012 was highest in London followed by Thames Valley Berkshire.  It was lowest in Cornwall and Isles of Scilly.

Introduction

Local enterprise partnerships (LEPs) are partnerships in England between local authorities and businesses. They were created in 2011 following the abolition of Regional Development Agencies.  Their role is to help shape local economic priorities and undertake activities to drive local economic growth and the creation of jobs.  Thirty nine LEPs have been created.  Every local authority in England belongs to at least one LEP.  However, some local authorities belong to more than one LEP.

This release provides, for the first time, data on economic output (as measured by nominal gross value added) for each LEP.  A time series with data back to 1997 is included while the latest data available are for calendar year 2012.  The data have been produced to be consistent with the existing ONS regional gross value added (income approach) data that are published annually in December for the NUTS geographies.  As such, these LEP GVA data carry the National Statistics badge.

Of the 39 LEPs, data for 30 have been created from simple additions of currently published NUTS3 regions. The remaining nine LEPs, which comprise parts of NUTS3 regions, have been calculated using methodology consistent with that used to implement NUTS boundary changes in estimates of regional GVA (income approach). More detail about this approach is available in the methodology section.

This output is initially being published as an ad hoc release.  This means it is not currently scheduled to be repeated in future years.  However, ONS are keen to hear views from users as to the usefulness or otherwise of this release.  If there is strong user demand for these data, then ONS will examine the opportunities to publish future updates.

The remainder of this article includes a short methodology section followed by three results sections examining the data for total GVA, GVA per head and GVA by industry.  In each case it should be noted that the GVA data are based on a nominal measure in current prices, and have not been adjusted to account for the impacts of inflation.

 

Methodology

The data in this release provide regional nominal gross value added data that are consistent with the data published in the December 2013 release of Regional GVA (Income Approach).  For a detailed discussion of the methodology used to calculate GVA (I), users can consult the Quality and Methodology Information (QMI) report for Regional GVA published in November 2013.  

In constructing the GVA data for the LEPs, for 30 of the 39 LEP areas GVA data were created from simple additions of currently published NUTS3 regions. For details of the boundaries of the LEPs, please see Appendix A.

The remaining nine LEP areas, which have boundaries that divide NUTS3 regions, have been calculated using methodology consistent with that used to implement NUTS boundary changes in estimates of regional GVA(I).  In particular:

  • At component level (Compensation of Employees (CoE), Mixed Income, Gross Trading Profits and Surplus, Rental Income, Holding Gains, Non-Market Capital Consumption, and Taxes on Production), the data for incomplete NUTS3 regions have been split into NUTS4 regions (corresponding to local authority districts).  This has been done using proportions of employees (from the Business Register and Employment Survey (BRES)), estimates of total gross operating surplus and mixed income (derived from the variable ‘Approximate GVA less CoE’ from the Annual Business Survey (ABS)); or population (from ONS mid-year population estimates).

  • Proportions relating to the latest non-provisional year (currently 2011) have been used to split the NUTS3 data for the whole time series.

  • Once split into NUTS4 regions, the component level data have been summed to form LEP areas, then the components have been summed to form estimates of GVA.

Please note that the estimates of GVA by LEP will not sum to England GVA as there is overlap between the LEP areas.

 

Total GVA

Table 1 presents those LEP areas that have seen the highest annual average growth rate in nominal1 GVA over the 1997 to 2012 period.  Obviously, the LEPs themselves have not been in existence over the majority of this period to influence the economic development of the areas. However, the data are useful in providing a good summary of the historical trends for each of the newly formed LEP areas and in doing so to show which LEPs cover areas that have been performing well economically over this period.

Table 1: LEPs with highest average growth rate per annum of nominal GVA, 1997-2012

Local Enterprise Partnership  %
London 5.1%
Enterprise M3 4.6%
Oxfordshire 4.5%
Worcestershire 4.4%
West of England 4.4%
Cornwall and the Isles of Scilly 4.3%
Greater Cambridge and Greater Peterborough 4.3%
Dorset 4.3%
Liverpool City Region 4.2%
South East Midlands 4.2%

Table source: Office for National Statistics

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The data show that London has seen the highest growth, with average annual growth of 5.1% in nominal GVA over the 1997 to 2012 period.  In general, it is areas in the South of England and West of England that have seen the strongest growth in GVA over this period. The only LEP in the North of England in Table 1 is Liverpool City Region.

Table 2 shows the LEP areas with the lowest average growth rate per annum over the 1997 to 2012 period.  The Black Country has seen the lowest nominal growth rate at 2.5%.  The remainder of the LEP areas in Table 2 have seen average growth of 3.1 to 3.5% per annum over the period.  The areas are typically found in the Midlands and the north of England.  

Table 2: LEPs with lowest average growth rate per annum of nominal GVA, 1997-2012

 Local Enterprise Partnership  %
The Marches 3.5%
Tees Valley 3.4%
Greater Lincolnshire 3.3%
Lancashire 3.3%
Leicester and Leicestershire 3.2%
Coventry and Warwickshire 3.2%
Cumbria 3.2%
Stoke-on-Trent and Staffordshire 3.2%
Humber 3.1%
Black Country 2.5%

Table source: Office for National Statistics

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GVA since 2007

Observing changes in GVA since 2007 for each LEP area provides evidence of how each area has fared through the UK economic downturn of 2008/09 and subsequent gradual recovery.

Table 3 shows that only four LEP areas have seen average annual growth (in nominal terms) of above 2% over the 2007 to 2012 period; these are Oxfordshire, London, Buckinghamshire Thames Valley and Enterprise M3.

Table 3: LEPs with highest average growth rate per annum of nominal GVA, 2007-2012

Local Enterprise Partnership %
Oxfordshire 2.5%
London 2.4%
Buckinghamshire Thames Valley 2.2%
Enterprise M3 2.0%
West of England 1.9%
Liverpool City Region 1.7%
Coast to Capital 1.6%
Dorset 1.6%
Greater Cambridge and Greater Peterborough 1.5%
Derby, Derbyshire, Nottingham and Nottinghamshire 1.5%

Table source: Office for National Statistics

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Table 4 shows the LEP areas that had the slowest growth in nominal GVA over the 2007 to 2012 period.  In Humber LEP area, nominal growth actually declined over this period, while in a further eight LEP areas growth averaged 0.5% per annum or less over the period.

Table 4: LEPs with lowest average growth rate per annum of nominal GVA, 2007-2012

Local Enterprise Partnership %
Leeds City Region 0.6%
Swindon and Wiltshire 0.5%
Heart of the South West 0.5%
Black Country 0.5%
Leicester and Leicestershire 0.4%
Stoke-on-Trent and Staffordshire 0.4%
Sheffield City Region 0.4%
Cornwall and the Isles of Scilly 0.3%
York and North Yorkshire 0.3%
Humber -0.1%

Table source: Office for National Statistics

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In presenting data for total GVA, such as in this section, it should be noted that the data take no account of any changes in population or size of workforce in an area.  An alternative method of analysing the data, which occurs in the next section, is to examine GVA per head data.

 

 

 

Notes for Total GVA

  1. It should be noted that these estimates are in nominal terms, and not real terms.  In other words, they do not take into account changes in prices over time (inflation). This is because the income approach to calculating GVA can only produce current price estimates due to the fact that some income components cannot easily be converted into prices and volume (e.g. gross operating surplus).

GVA per Head

GVA per head data can be a useful way of comparing regions of different sizes. It allows us to examine growth in economic output over time relative to changes in the size of the population. GVA per head data can be considered to provide an indicative guide to the relative economic performance of an area, but it should be noted that it is not strictly a direct measure of either labour productivity1 or of household incomes. In particular, some care should be used in interpreting GVA per head data in areas which have a high level of net in- or out-commuting2. In addition, it should be noted that the denominator for GVA per head is the total residential population of an area and this includes those who are unemployed or economically inactive as well as working residents3.

For the latest 2012 data, Table 5 (calculated on an index basis, UK=100) lists the LEP areas with the highest levels of GVA per head. London and Thames Valley Berkshire have GVA per head output substantially above that for other LEP areas.  Among the remainder of the top 10 LEP areas, only Cheshire and Warrington LEP is located in the north of England.

Table 5: LEPs with highest GVA per head, 2012

Local Enterprise Partnership UK=100
London 174.8
Thames Valley Berkshire 164.3
Enterprise M3 121.9
Oxfordshire 116.9
West of England 116.2
Hertfordshire 113.4
Cheshire and Warrington 113.4
Buckinghamshire Thames Valley 113.2
South East Midlands 104.9
Greater Cambridge and Greater Peterborough 101.6

Table source: Office for National Statistics

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Table 6 shows the LEPs with the lowest GVA per head in 2012.  Cornwall and Isles of Scilly has the lowest, almost 40% below the UK average, while Black Country, Sheffield City Region, Stoke-on-Trent and Staffordshire and Greater Lincolnshire all have GVA per head 25% or more below the UK average.

Table 6: LEPs with lowest GVA per head, 2012

Local Enterprise Partnership UK=100
Heart of the South West 76.6
Lancashire 76.4
The Marches 76.3
Tees Valley 75.8
North Eastern 75.5
Greater Lincolnshire 74.1
Stoke-on-Trent and Staffordshire 72.6
Sheffield City Region 71.1
Black Country 70.6
Cornwall and the Isles of Scilly 61.2

Table source: Office for National Statistics

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Table 7 shows the LEP areas that have had the highest average growth rates in nominal GVA per head over the 1997 to 2012 period. It shows that Liverpool City Region has had the highest growth rate in GVA per head at a nominal 4.2% per annum.  It is followed by Enterprise M3 and Worcestershire which saw a nominal growth rate of 4%.  London, which had the highest growth in total GVA (as seen in Table 1) had average growth of GVA per head of 3.9% per annum.

Table 7: LEPs with highest average growth rate per annum of nominal GVA per head, 1997-2012

Local Enterprise Partnership %
Liverpool City Region 4.2%
Enterprise M3 4.0%
Worcestershire 4.0%
London 3.9%
North Eastern 3.9%
Oxfordshire 3.8%
Cheshire and Warrington 3.7%
West of England 3.7%
Dorset 3.6%
Greater Manchester 3.6%

Table source: Office for National Statistics

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Table 8 shows that Black Country LEP area and Greater Lincolnshire LEP area had the lowest growth in GVA per head over the 1997 to 2012 period with average annual growth of 2.5%.  A majority of the LEP areas listed in Table 8 are to be found in the Midlands.

Table 8: LEPs with lowest average growth rate per annum of nominal GVA per head, 1997-2012

Local Enterprise Partnership %
Northamptonshire 2.9%
New Anglia 2.9%
Stoke-on-Trent and Staffordshire 2.8%
Humber 2.8%
The Marches 2.8%
Coventry and Warwickshire 2.7%
Swindon and Wiltshire 2.6%
Greater Lincolnshire 2.5%
Leicester and Leicestershire 2.5%
Black Country 2.2%

Table source: Office for National Statistics

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GVA per head since 2007

Observing changes in GVA per head since 2007 for each LEP area provides evidence of how each area has fared through the UK economic downturn of 2008/09 and subsequent gradual recovery.

Oxfordshire witnessed the highest average annual nominal growth rate in GVA per head over the 2007 to 2012 period at 2.2%.  The only other LEP areas in which nominal GVA per head grew by an average of 1.5% or more during this period were Buckinghamshire Thames Valley, Liverpool City Region, Enterprise M3 and West of England.

Table 9: LEPs with highest average growth rate per annum of nominal GVA per head, 2007-2012

Local Enterprise Partnership %
Oxfordshire 2.2%
Buckinghamshire Thames Valley 1.9%
Liverpool City Region 1.7%
Enterprise M3 1.6%
West of England 1.6%
London 1.3%
Derby, Derbyshire, Nottingham and Nottinghamshire 1.2%
Worcestershire 1.2%
North Eastern 1.1%
Dorset 1.1%

Table source: Office for National Statistics

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Table 10 shows the LEP areas with the lowest average growth rate per annum of nominal GVA per head from 2007 to 2012.  There are seven LEP areas that during this period saw a decline in nominal GVA per head with Humber LEP and Leicester and Leicestershire LEP having the largest average annual decline.  It should be remembered that these data are in current price terms, not real terms; they are not adjusted for inflation. 

Table 10: LEPs with lowest average growth rate per annum of nominal GVA per head, 2007-2012

Local Enterprise Partnership %
Greater Birmingham and Solihull 0.1%
Stoke-on-Trent and Staffordshire 0.0%
Leeds City Region 0.0%
Black Country -0.1%
York and North Yorkshire -0.1%
Sheffield City Region -0.1%
Cornwall and the Isles of Scilly -0.2%
Swindon and Wiltshire -0.3%
Leicester and Leicestershire -0.4%
Humber -0.4%

Table source: Office for National Statistics

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Notes for GVA per Head

  1. In the ONS output ‘Subregional Productivity’, data for the labour productivity measures GVA per hour worked and GVA per job filled are published based on the NUTS geographies.  An update to provide data for LEPs is planned to follow during the summer.
  2. This is because GVA per head divides a workplace numerator by a residence based denominator.  As a result, for areas with high levels of in-commuting it can tend to overstate economic performance, and likewise it can understate economic performance for an area with a high level of net out-commuting.
  3. In a measure of labour productivity, the denominator would only include people directly involved in producing the economic output. 

GVA by Industry

For each local enterprise partnership, the GVA data are shown broken down into 11 industry groups for the 1997 to 2011 period, with this data available in the reference tables associated with this release.  Different industries are more or less important to different areas of the country.  This is examined in Table 11 which shows for each industry in 2011, the three LEPs in which the industry accounted for the highest share of total LEP GVA.

For example, in Table 11, it can be seen that Agriculture, forestry and fishing accounted for 4% of the GVA of ‘The Marches’ LEP and 3% of total GVA in Cornwall and the Isles of Scilly and York and North Yorkshire.  These are the three LEPs to which Agriculture, forestry and fishing provided the biggest share of total GVA in 2011. 

Large industry sectors shown in Table 11 include Manufacturing which accounted for 25% of GVA in both Cumbria and Humber LEP areas; the ‘Wholesale & Retail; Transport; and Accommodation’ industry grouping which accounted for 25% of GVA in Northamptonshire and the ‘Public Administration, Health and Education’ industry grouping which accounted for 26% of GVA in North Eastern and Sheffield City Region.  

Table 11 also shows that some industries are vastly more important to the economic output of a particular LEP area than they are for other areas.  For example, the ‘Information and communication’ sector accounted for 22% of GVA in Thames Valley Berkshire in 2011, but no more than 12% in any other LEP area.  Similarly, the 'Financial and insurance activities' sector accounted for 20% of GVA in London but no more than 10% in any other LEP.

Table 11: LEPs with highest share of their GVA by industry, 2011

Industry Local Enterprise Partnership Share of LEP GVA
Agriculture, forestry and fishing    The Marches 4%
Cornwall and the Isles of Scilly 3%
York and North Yorkshire 3%
     
Mining; Gas & Electricity; Water Supply   Tees Valley 6%
Black Country 5%
Leicester and Leicestershire 5%
     
Manufacturing   Cumbria 25%
Humber 25%
Cheshire and Warrington 22%
     
Construction   South East 10%
Cornwall and the Isles of Scilly 9%
Hertfordshire 9%
     
Wholesale & Retail; Transport; Accomodation   Northamptonshire 25%
South East Midlands 24%
York and North Yorkshire 24%
     
Information and communication   Thames Valley Berkshire 22%
London 12%
Enterprise M3 12%
     
Financial and insurance activities   London 20%
Dorset 10%
West of England 9%
     
Real estate activities   Buckinghamshire Thames Valley 20%
Dorset 15%
Worcestershire 14%
     
Professional & scientific; Administrative & support   London 17%
Hertfordshire 15%
Enterprise M3 14%
     
Public admin; Education; Health   North Eastern 26%
Sheffield City Region 26%
Liverpool City Region 25%
     
Arts, entertainment; Other services; Households   Hertfordshire 5%
Stoke-on-Trent and Staffordshire 5%
Northamptonshire 5%

Table source: Office for National Statistics

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Background notes

  1. The GVA estimates presented here are on a workplace basis (allocated to the location where the economic activity takes place).

    GVA estimates are presented in current basic prices. They do not allow for different regional price levels or changes in prices over time (inflation). The income approach to calculating GVA produces only current price estimates because some income components cannot easily be converted into prices and volume (e.g. gross operating surplus).

    As with the National Accounts, regional, sub-regional and local GVA estimates (including LEP GVA estimates) are calculated as reliably as possible. There is no easy way to measure the reliability of the estimates but ONS carries out consistency checks on data inputs, applies methods consistently and makes use of local knowledge for England, Scotland, Wales and Northern Ireland through consultation with key users in the Devolved Administrations and other government departments. The estimates are partly based on sample surveys and the quality of the results therefore varies according to sample size. This means that the results for smaller regions are subject to a greater degree of uncertainty than those for larger regions.

  2. Details of the policy governing the release of new data are available by visiting www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media Relations Office email: media.relations@ons.gsi.gov.uk

    These National Statistics are produced to high professional standards and released according to the arrangements approved by the UK Statistics Authority.

Appendix A

Table B2 in the reference table accompanying this publication shows the LEPs boundaries used to compile the data in this report.  In each case, the LEP boundaries used have been an amalgamation of one or more local authority.  In other words, for each local authority associated with a LEP in Table 5, data covering the whole of that local authority are included within the LEP data.  This is consistent with the boundary data provided by the Department of Business, Innovation & Skills (BIS) (as at 31/3/14).

There are believed to be at least two cases, however, where the working boundaries of a LEP cut through existing local authority boundaries.  The cases ONS is aware of are Enterprise M3 and Solent LEPs where parts of the local authorities of New Forest, Test Valley and Winchester and East Hampshire are in the Enterprise M3 LEP while parts are in the Solent LEP.

Providing GVA data for LEP boundaries that do not follow local authority boundaries will be difficult to achieve and would require further investigation to determine its practicality. For this release, therefore, data have only been provided based upon allocating full local authorities to one or more LEPs as detailed in Table 5 and in line with the current LEPs boundary spreadsheet provided by BIS.

Get all the tables for this publication in the data section of this publication .
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