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Statistical bulletin: Annual Business Survey, 2010 - Provisional Regional Results This product is designated as National Statistics

Released: 26 July 2012 Download PDF

Key points

  • Overall, the results for the UK Business Economy (that part of the UK whole economy measured by the Annual Business Survey, ABS) showed that approximate Gross Value Added at basic prices (aGVA) grew by 4 per cent (£33.8 billion) between 2009 and 2010, although not yet recovering to 2008 levels. Those regions contributing most to the overall growth over this period were the West Midlands, the North West and London.
  • The West Midlands region showed the highest growth in aGVA between 2009 and 2010, rising 11 per cent (£6.8 billion) and returning to its 2008 level of £66.2 billion.
  • The North West region followed the West Midlands with a 7 per cent (£6.4 billion) rise in aGVA to £93.9 billion, higher than the levels seen in both 2008 and 2009.
  • London showed a rise of 3 per cent (£5.5 billion) in aGVA to £217 billion in 2010, but has not returned to its 2008 level of around £231.2 billion.
  • Yorkshire and The Humber, East Midlands and Northern Ireland showed little change in aGVA between 2009 and 2010.
  • Comparing the 2009 estimates in the 'ABS 2010, Provisional Regional Results' to those released in the 'ABS 2009, Provisional Regional Results' (published 28th July 2011) shows a minimal revision for the UK Business Economy. For 2009 there were downward revisions in aGVA by 0.7 per cent (£6.1 billion) and turnover by 0.02 per cent (£0.5 billion), and an upward revision in purchases by 0.4 per cent (£7.3 billion).

Annual Business Survey (ABS)

The Annual Business Survey (ABS), formerly the Annual Business Inquiry part 2 (ABI/2), produced by the Office for National Statistics, is the UK's key resource for understanding the detailed structure, conduct and performance of businesses across the UK. It is an annual survey of businesses covering the production, construction, distribution and service industries which represent the UK Business Economy. This is about two thirds of the UK's whole economy in terms of Gross Value Added. For more information about the survey see background note 1.

Estimates are published for turnover, purchases, approximate Gross Value Added at basic prices (aGVA) and employment costs for industry sectors and English regions/UK countries. These estimates are collected and presented as monetary values, and give a snapshot of UK business activity that can be used to understand the level of the contributions to the UK economy from different regions/countries and business sectors at any one time. The statistics produced are referred to as structural business statistics.

The approximate estimate of Gross Value Added at basic prices (aGVA) published in this release is a measure of the income generated by businesses within their industries and sectors, less the cost of goods and services used up to create the income. The main component of income is turnover, while purchases is the main component of the consumed goods and services (referred to as intermediate consumption). Stock levels which can rise or fall can also have an impact on aGVA, as can the values of subsidies received or duty paid.

Businesses' employment costs are met from the value of aGVA, leaving an operating surplus which is a close approximation for profit. This ABS measure of aGVA is called 'approximate' because it does not fully allow for some National Accounts concepts such as taxes, subsidies or income earned in kind. National Accounts make these adjustments to calculate GVA and include information from other sources which cover parts of the economy not included in ABS. For further information on aGVA see background note 4.

The statistics produced by the ABS are essential feeders to the overall quality of the UK National Accounts (174.2 Kb Pdf) and the measurement of Gross Domestic Product (GDP). For further information on the contribution the ABS makes to the National Accounts see background note 1.

In addition the ABS is the main source of data supplied to Eurostat (the statistical office of the European Union) to meet the requirements of the European Structural Business Statistics Regulation (SBS). This regulation ensures that key statistics on the structure of businesses are composed in a way which is comparable across Europe. The financial information is also used by the Scottish Government and the Welsh Government in the compilation of both regional and country specific Input-Output tables and Indices of Production. For other uses see background note 10.

The ABS regional estimates are produced by apportionment of the national results. More information on the apportionment methodology can be found in the background note 5. Any commentary made in this publication on results for Scotland, Wales or Northern Ireland relate to the estimates produced using ONS' ABS regional methodology. The Scottish Government, Welsh Government and the Department of Finance and Personnel Northern Ireland also publish their own results. Due to the method of apportioning national values to the regions there will be slight differences between these totals and those published in the Annual Business Survey, 2010 Revised Results.

For more information, including more detail on the industry coverage, the Standard Industrial Classification system, the measure of aGVA and regional apportionment, please see the background notes in this release.

What data are available?

Provisional 2010 UK regional results at the industry division level (2 digit Standard Industrial Classification 2007) are available free of charge via the 'Data in this release' button at the top of this publication, or from the ABS webpages on the ONS website. The published variables are turnover, purchases, aGVA and employment costs.

Additional standard extracts containing more detail are available on request. Bespoke analyses are also available but there will be a charge for these. For more information about either of these services please email abs@ons.gsi.gov.uk, or telephone +44(0) 1633 456592 for standard extracts, or +44 (0)1633 456601 for bespoke special analyses.

User feedback

We are interested in your views of our data and publication. The results of a 2012 user survey, and our plans to act on the feedback received, are published on the ABS webpages (223.7 Kb Pdf) .

We have also set up a new Business and Trade Statistics Community on the StatsUserNet forum. StatsUserNet is the Royal Statistical Society's new interactive site for users of official statistics. The community objectives are to promote dialogue and share information between users and producers of official business and trade statistics (not only ABS) about the structure, content and performance of businesses within the UK. Anyone can join the discussions by following the link above and signing up.

UK business economy

The overall UK figures published in this 2010 regional release are the same as in the ABS 2010, Revised Results (national level) published on 14 June 2012. What this release provides is a breakdown of the UK by its regions/countries (see Table 1), showing which have had the greatest impact on the size and growth of the UK Business Economy from 2008 to 2010. 

Figures 1 and 2 also illustrate this. The release then goes on to show how these regions/countries impacted on the size and growth of the major business sectors within the economy over the same period. In addition a map is also included illustrating the distribution of aGVA across the UK in 2010 (see Map 1).

The commentary provided in the Annual Business Survey 2010, Revised Results (published 14th June 2012) for each sector of the economy will also be consistent with these regional results overall.  Commentary in this release is based on a region/country's contribution to the 2009 to 2010 changes. Where possible the commentary draws on evidence from businesses as to the causes for the observed changes.

The recession and recovery described by the ABS between 2008 and 2010 is in line with Gross Domestic Product (GDP) figures published in the Quarterly National Accounts.

Note: To see what industries are included in the ABS measure of the UK Business Economy, refer to Background note 2 (ABS Coverage). 

Figure 1: UK Business Economy (Section A-S) - Changes in Approximate Gross Value Added (aGVA) between 2008 - 2010

United Kingdom by Country and Region

UK Business Economy (Section A-S) - Changes in Approximate Gross Value Added (aGVA) between 2008 - 2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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Figure 2: UK Business Economy (Sections A-S) - Growth in Approximate Gross Value Added (aGVA) between 2008 - 2009 and 2009 - 2010

United Kingdom by Country and Region

UK Business Economy (Sections A-S) - Growth in Approximate Gross Value Added (aGVA) between 2008 - 2009 and 2009 - 2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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The UK Business Economy saw approximate Gross Value Added at basic prices (aGVA) increase by 4 per cent (£33.8 billion) between 2009 and 2010. By region the pattern is broadly one of growth, with some regions/countries making a significant contribution. Those regions contributing most to the growth were the West Midlands (£6.8 billion), the North West (£6.4 billion) and London (£5.5 billion).

The following commentary looks at the regions/countries providing most of the growth, and within them the sectors with the largest contributions. This information can also be found in Table 1.

West Midlands

The West Midlands region contributed £6.8 billion to the aGVA growth in the UK Business Economy between 2009 and 2010, recording the largest increase in aGVA of 11 per cent and returning to its 2008 level of £66.2 billion. Overall some industry sectors within this region recorded increases in aGVA whilst others recorded decreases, but the industry sectors leading this region's growth were:

  • Service industries (Section H-S) contributing £2.6 billion to the total aGVA growth of the region with a 2009 to 2010 rise of 9 per cent.

  • Distribution industries (Section G) contributing £2.0 billion to the total aGVA growth of the region with a 2009 to 2010 rise of 22 per cent.

  • Production industries (Section B-E) contributing £2.0 billion to the total aGVA growth of the region with a 2009 to 2010 rise of 14 per cent.

North West

The North West region contributed £6.4 billion to the aGVA growth in the UK Business Economy between 2009 and 2010, recording an aGVA rise of 7 per cent above the level seen in both 2008 and 2009 (£87 billion). This region recorded the largest increase over 2008 levels. Overall some industry sectors within this region recorded increases in aGVA whilst others recorded decreases, but the industry sector leading this region's growth was:

  • Production industries (Section B-E) contributing £4.0 billion to the total aGVA growth of the region with a 2009 to 2010 rise of 19 per cent.

London

London contributed £5.5 billion to the aGVA growth in the UK Business Economy between 2009 and 2010, a 3 per cent rise for the region. The industry sector leading this region's growth was:

  • Service industries (Section H-S) contributing £9.0 billion to the total aGVA growth of the region with a 2009 to 2010 rise of 6 per cent.

The Service sector has contributed more than the overall growth of £5.5 billion in aGVA for the London region. All other industry sectors in this region showed decreases in aGVA between 2009 and 2010, the largest being a decrease of £3.0 billion in the Distribution sector. A major contributing factor in Distribution was the net effect of the rise in the selling and purchase price of fuel. 

South East

The South East region contributed £4.8 billion to the aGVA growth in the UK Business Economy between 2009 and 2010, a 3 per cent rise for the region. Overall some industry sectors within this region recorded increases in aGVA whilst others recorded decreases, but the industry sector leading this region's growth was:

  • Service industries (Section H-S) contributing £2.8 billion to the total aGVA growth of the region with a 2009 to 2010 rise of 3 per cent. 

East of England

The East of England contributed £3.9 billion to the aGVA growth in the UK Business Economy between 2009 and 2010, a 5 per cent rise for the region. Overall some industry sectors within this region recorded increases in aGVA whilst others recorded decreases, but the industry sector leading this region's growth was:

  • Service industries (Section H-S) contributing £2.5 billion to the total aGVA growth of the region with a 2009 to 2010 rise of 7 per cent.

North East, South West, Wales and Scotland

These regions/countries combined contributed £6.4 billion to the aGVA growth in the UK Business Economy between 2009 and 2010, together recording an aGVA rise of 3 per cent. 

Yorkshire and the Humber, East Midlands and Northern Ireland

These regions/countries showed little change in aGVA between 2009 and 2010. 

Table 1: UK Business Economy (Sections A-S) - Details of Income and Expenditure 2008-2010

United Kingdom by Country and Region

£ billion
Country and Region     Year   Total turnover   Total purchases of goods materials and services Approximate gross value added at basic prices (aGVA)
North East 2008 85 56 28
2009 80 53 25
2010 85 58 26
North West 2008 281 190 87
2009 277 178 88
2010 279 178 94
Yorkshire and The Humber 2008 197 133 64
2009 181 123 56
2010 189 132 56
East Midlands 2008 168 113 52
2009 158 104 50
2010 160 107 50
West Midlands 2008 227 157 66
2009 211 148 59
2010 229 162 66
East of England 2008 240 159 75
2009 229 152 72
2010 248 167 76
London 2008 897 657 231
2009 807 590 212
2010 862 636 217
South East 2008 471 320 146
2009 453 305 140
2010 468 319 145
South West 2008 197 130 66
2009 189 122 65
2010 198 128 67
England 2008 2,763 1,916 816
2009 2,584 1,776 767
2010 2,719 1,888 798
Wales 2008 94 64 27
2009 89 61 26
2010 101 72 27
Scotland 2008 252 149 103
2009 238 143 94
2010 249 152 96
Great Britain 2008 3,108 2,129 945
2009 2,911 1,980 887
2010 3,068 2,112 920
Northern Ireland 2008 61 40 19
2009 58 37 18
2010 57 36 18
United Kingdom 2008 3,168 2,169 964
2009 2,969 2,016 905
2010 3,125 2,148 938

Table source: Office for National Statistics

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Map 1: UK Business Economy (Sections A-S) - Distribution of Approximate Gross Value Added (aGVA) across the UK in 2010

United Kingdom by Country and Region

Map 1: UK Business Economy (Sections A-S) - Distribution of Approximate Gross Value Added (aGVA) across the UK in 2010
Source: Annual Business Survey (ABS) - Office for National Statistics

Production industries (Sections B-E)

For the UK Business Economy, the Production sector showed growth between 2009 and 2010, with aGVA increasing by 6 per cent (£12.5 billion), as turnover increased by 8 per cent (£46.1 billion) and purchases by 9 per cent (£33.6 billion). This is an improved situation compared to the 2008 to 2009 period when aGVA decreased by 10 per cent (£22.1 billion), while turnover and purchases decreased by 9 per cent (£56.1 billion and £37.5 billion respectively). The UK figures for Production can be found in Table 2.

Figure 3: Production Industries (Sections B-E) - Changes in Approximate Gross Value Added (aGVA) between 2008 - 2010

United Kingdom by Country and Region

Production Industries (Sections B-E) - Changes in Approximate Gross Value Added (aGVA) between 2008 - 2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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Figure 4: Production Industries (Sections B-E) - Growth in Approximate Gross Value Added (aGVA) between 2008 - 2009 and 2009 - 2010

United Kingdom by Country and Region

Production Industries (Sections B-E) - Growth in Approximate Gross Value Added (aGVA) between 2008 - 2009 and 2009 - 2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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The Production sector contributed £12.5 billion to the total aGVA growth of the UK Business Economy between 2009 and 2010, a rise of 6 per cent for this sector. Some regions within this sector recorded increases in aGVA whilst others recorded decreases. The following commentary looks at the regions providing most to the growth, and within them the industries with the largest contributions. This information can also be found in Table 2, and is illustrated in Figures 3 and 4 and Map 2.

North West

The North West contributed £4.0 billion to the total aGVA growth of the Production sector between 2009 to 2010, a rise of 19 per cent for the region.  One of the industries leading this region's growth within Production was:

  • Manufacture of motor vehicles, trailers and semi-trailers (Division 29), contributing £0.9 billion.

West Midlands

The West Midlands contributed £2.0 billion to the total aGVA growth of the Production sector between 2009 to 2010, a rise of 14 per cent for the region. The industry leading this region's growth within Production was:

  • Manufacture of motor vehicles, trailers and semi-trailers (Division 29), contributing £1.2 billion. Businesses reported increases in prices, and a better economic situation for some of the larger motor manufacturers. 

Note: In the Manufacture of motor vehicles, trailers and semi-trailers (Division 29), from May 2009 to April 2010 the Government introduced a temporary car scrappage scheme which was intended to aid this industry. Under this scheme owners of cars of at least 10 years old received £2,000 off the price of a new vehicle with half of the money being paid by the Government and half by the car maker when their old car was scrapped. 

Table 2: Production Industries (Sections B-E) - Details of Income and Expenditure 2008-2010

United Kingdom by Country and Region

£ billion
Country and Region     Year   Total turnover   Total purchases of goods materials and services Approximate gross value added at basic prices (aGVA)
North East 2008 30 19 10
2009 28 19 8
2010 31 22 9
North West 2008 74 48 22
2009 71 46 21
2010 78 49 25
Yorkshire and The Humber 2008 62 42 19
2009 56 39 16
2010 60 42 16
East Midlands 2008 54 35 16
2009 51 33 15
2010 52 34 15
West Midlands 2008 55 37 17
2009 48 32 15
2010 55 38 17
East of England 2008 48 31 17
2009 44 28 15
2010 48 31 16
London 2008 51 31 19
2009 46 29 18
2010 45 27 18
South East 2008 89 61 25
2009 81 54 24
2010 87 60 23
South West 2008 42 26 15
2009 39 24 14
2010 43 25 16
England 2008 505 332 159
2009 464 304 145
2010 499 328 155
Wales 2008 40 28 9
2009 40 28 9
2010 45 33 10
Scotland 2008 96 56 40
2009 81 48 34
2010 87 52 35
Great Britain 2008 641 416 209
2009 586 380 187
2010 631 413 200
Northern Ireland 2008 19 11 6
2009 18 9 5
2010 18 10 5
United Kingdom 2008 659 427 215
2009 603 389 193
2010 650 423 205
           

Table source: Office for National Statistics

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Map 2: Production Industries (Sections B-E) - Distribution of Approximate Gross Value Added (aGVA) across the UK in 2010

United Kingdom by Country and Region

Production Industries (Sections B-E) - Distribution of Approximate Gross Value Added (aGVA) across the UK in 2010
Source: Annual Business Survey (ABS) - Office for National Statistics

Construction industries (Section F)

For the UK Business Economy, the Construction sector as a whole showed year on year decreases in aGVA, turnover and purchases across the three year period from 2008 to 2010. The decrease in the sector between 2009 and 2010 is small compared to the 2008 to 2009 downturn when turnover decreased by 12 per cent (£25.9 billion) and purchases decreased by 13 per cent (£16.1 billion). Between 2009 and 2010 turnover and purchases fell by only 1 per cent (£1.7 billion and £1.0 billion respectively). This resulted in aGVA barely changing between 2009 and 2010 with a fall of just 0.5 per cent (£0.3 billion) as opposed to the 2008 to 2009 decrease of 15 per cent (£12.5 billion). The UK figures for Construction can be found in Table 3.

Figure 5: Construction Industries (Section F) - Changes in Approximate Gross Value Added (aGVA) between 2008 - 2010

United Kingdom by Country and Region

Construction Industries (Section F) - Changes in Approximate Gross Value Added (aGVA) between 2008 - 2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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Figure 6: Construction Industries (Section F) - Growth in Approximate Gross Value Added (aGVA) between 2008 - 2009 and 2009 - 2010

United Kingdom by Country and Region

Construction Industries (Section F) - Growth in Approximate Gross Value Added (aGVA) between 2008 - 2009 and 2009 - 2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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The Construction sector contributed a £0.3 billion decrease in aGVA for the UK Business Economy between 2009 and 2010, a 0.5 per cent fall for this sector.  Within the regions there were both positive and negative aGVA movements.  The largest increase was for the South West at £0.6 billion, while the largest decrease was for the East Midlands at £0.9 billion. This is illustrated in Figures 5 and 6. 

Table 3: Construction Industries (Section F) - Details of Income and Expenditure 2008-2010

United Kingdom by Country and Region

£ billion
Country and Region     Year   Total turnover   Total purchases of goods materials and services Approximate gross value added at basic prices (aGVA)
North East 2008 6 4 3
2009 6 4 2
2010 7 4 2
North West 2008 21 13 8
2009 19 11 8
2010 18 11 7
Yorkshire and The Humber 2008 16 10 6
2009 14 9 5
2010 12 8 5
East Midlands 2008 14 9 5
2009 11 7 5
2010 10 6 4
West Midlands 2008 17 10 6
2009 15 9 5
2010 14 8 5
East of England 2008 19 12 7
2009 19 12 7
2010 20 12 7
London 2008 36 22 14
2009 30 19 11
2010 31 19 11
South East 2008 33 20 13
2009 30 18 10
2010 29 18 10
South West 2008 15 9 6
2009 13 8 5
2010 14 8 5
England 2008 178 109 68
2009 158 96 58
2010 155 95 58
Wales 2008 7 4 3
2009 6 3 2
2010 6 4 2
Scotland 2008 18 11 8
2009 15 9 6
2010 16 10 6
Great Britain 2008 203 124 78
2009 179 109 66
2010 177 108 66
Northern Ireland 2008 8 5 3
2009 6 4 2
2010 6 4 2
United Kingdom 2008 211 129 81
2009 185 113 68
2010 183 112 68

Table source: Office for National Statistics

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Map 3: Construction Industries (Section F) - Distribution of Approximate Gross Value Added (aGVA) across the UK in 2010

United Kingdom by Country and Region

Construction Industries (Section F) - Distribution of Approximate Gross Value Added (aGVA) across the UK in 2010
Source: Annual Business Survey (ABS) - Office for National Statistics

Distribution industries (Section G)

For the UK Business Economy, the Distribution sector saw limited growth between 2009 and 2010. While turnover increased by 6 per cent (£74.6 billion), purchases increased by a larger 8 per cent (£78.5 billion). This led to aGVA remaining relatively unchanged from the 2009 level (£149.1 billion), with an increase of just 0.4 per cent (£0.6 billion) in 2010. This is in contrast to the 2008 to 2009 period when aGVA fell by 10 per cent (£17.3 billion), while turnover decreased by 9 per cent (£109.2 billion) and purchases also decreased by 9 per cent (£97.1 billion). The UK figures for Distribution can be found in Table 4.

Figure 7: Distribution Industries (Section G) - Changes in Approximate Gross Value Added (aGVA) between 2008 - 2010

United Kingdom by Country and Region

Distribution Industries (Section G) - Changes in Approximate Gross Value Added (aGVA) between 2008 - 2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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Figure 8: Distribution Industries (Section G) - Growth in Approximate Gross Value Added (aGVA) between 2008 - 2009 and 2009 - 2010

United Kingdom by Country and Region

Distribution Industries (Section G) - Growth in Approximate Gross Value Added (aGVA) between 2008 - 2009 and 2009 - 2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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The Distribution sector contributed £0.6 billion to the total aGVA growth in the UK Business Economy between 2009 and 2010, a rise of 0.4 per cent for this sector. Some regions within this sector recorded increases in aGVA whilst others recorded decreases. The following commentary looks at the regions providing most to the growth, and within them the industries with the largest contributions. This information can also be found in Table 4, and is illustrated in Figures 7 and 8 and Map 4.

South East

The South East contributed £2.1 billion to the total aGVA growth in the Distribution industries between 2009 and 2010, a rise of 9 per cent for the region.  The industry leading this region's growth was:

  • Wholesale and retail trade and repair of motor vehicles and motorcycles (Division 45) contributing £2.5 billion.  Businesses reported stocks of motor cars being built up in 2010 following the depletion of the stocks in 2009.  Stocks are another major component of aGVA. The Government backed car scrappage scheme also factored in this industry. 

North West

The North West contributed £2.0 billion to the total aGVA growth in the Distribution industries between 2009 and 2010, a rise of 12 per cent for the region.  The industry leading this region's growth was:

  • Wholesale trade, except of motor vehicles and motorcycles (Division 46) contributing £1.0 billion.  Rising fuel prices were a major contributing factor to this increase. 

West Midlands

The West Midlands contributed £2.0 billion to the total aGVA growth in the Distribution industries between 2009 and 2010, a rise of 22 per cent for the region.  The industry leading this region's growth was:

  • Wholesale trade, except of motor vehicles and motorcycles (Division 46) contributing £1.3 billion.  Rising fuel prices were a major contributing factor to this increase.

Whilst the regions noted above are all showing positive aGVA movements between 2009 and 2010, there are several regions/countries which equally are showing negative movements.  The largest of these are London and Scotland with a combined decrease of £5.0 billion. A major contributing factor in Distribution was the net effect of the rise in the selling and purchase price of fuel. 

Table 4: Distribution Industries (Section G) - Details of Income and Expenditure 2008-2010

United Kingdom by Country and Region

£ billion
Country and Region     Year   Total turnover   Total purchases of goods materials and services Approximate gross value added at basic prices (aGVA)
North East 2008 25 20 5
2009 21 17 4
2010 22 18 4
North West 2008 95 77 17
2009 96 72 17
2010 95 73 19
Yorkshire and The Humber 2008 64 51 13
2009 57 46 10
2010 62 53 10
East Midlands 2008 58 48 10
2009 55 44 10
2010 55 45 10
West Midlands 2008 85 72 11
2009 76 64 9
2010 82 70 11
East of England 2008 91 72 16
2009 88 70 16
2010 95 78 15
London 2008 490 444 37
2009 423 389 28
2010 462 428 25
South East 2008 182 154 28
2009 173 146 23
2010 179 152 26
South West 2008 72 61 10
2009 68 57 11
2010 73 62 11
England 2008 1,163 1,000 146
2009 1,056 905 129
2010 1,126 977 131
Wales 2008 26 21 4
2009 24 20 4
2010 28 24 4
Scotland 2008 56 43 12
2009 57 43 12
2010 58 46 10
Great Britain 2008 1,245 1,065 163
2009 1,136 968 145
2010 1,211 1,047 145
Northern Ireland 2008 22 18 4
2009 21 18 4
2010 21 17 5
United Kingdom 2008 1,267 1,083 167
2009 1,158 986 149
2010 1,233 1,064 150

Table source: Office for National Statistics

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Map 4: Distribution Industries (Section G) - Distribution of Approximate Gross Value Added (aGVA) across the UK in 2010

United Kingdom by Country and Region

Distribution Industries (Section G) - Distribution of Approximate Gross Value Added (aGVA) across the UK in 2010
Source: Annual Business Survey (ABS) - Office for National Statistics

Service industries (Sections H-S)

For the UK Business Economy, the Service sector recorded growth between 2009 and 2010, with aGVA, turnover and purchases all showing rises of 4 per cent (£20.7 billion, £36.7 billion and £19.8 billion respectively). This is in contrast to the slight downturn seen between 2008 and 2009 when aGVA and turnover decreased by 1 per cent (£7.1 billion and £7.9 billion respectively) and purchases by 0.3 per cent (£1.6 billion). The UK figures for the Service sector can be found in Table 5.

Figure 9: Service Industries (Sections H-S) - Changes in Approximate Gross Value Added (aGVA) between 2008 - 2010

United Kingdom by Country and Region

Service Industries (Sections H-S) - Changes in Approximate Gross Value Added (aGVA) between 2008 - 2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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Figure 10: Service Industries (Sections H-S) - Growth in Approximate Gross Value Added (aGVA) between 2008 - 2009 and 2009 - 2010

United Kingdom by Country and Region

Service Industries (Sections H-S) - Growth in Approximate Gross Value Added (aGVA) between 2008 - 2009 and 2009 - 2010
Source: Annual Business Survey (ABS) - Office for National Statistics

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The Service sector contributed £20.7 billion to the total aGVA growth in the UK business economy between 2009 and 2010, a rise of 4 per cent for this sector. Some regions within this sector recorded increases in aGVA whilst others recorded decreases. The following commentary looks at the regions providing most to the growth, and within them the industries with the largest contributions. This information can also be found in Table 5, and is illustrated in Figures 9 and 10 and Map 5. 

London

London contributed £9.0 billion to the total aGVA growth in the Service industries between 2009 and 2010, a rise of 6 per cent for the region. The industry leading this region's growth was:

  • Activities of head offices; management consultancy activities (Division 70) contributing £2.2 billion. 

South East

The South East contributed £2.8 billion to the total aGVA growth in the Service industries between 2009 and 2010, a rise of 3 per cent for the region. The industry leading this region's growth was:

  • Activities of head offices; management consultancy activities (Division 70) contributing £4.3 billion to the Service industries growth. 

East of England

The East of England contributed £2.5 billion to the total aGVA growth in the Service industries between 2009 and 2010, a rise of 7 per cent for the region. The industries leading this region's growth were:

  • Activities of head offices; management consultancy activities (Division 70) contributing £1.2 billion.

  • Residential care activities (Division 87) contributing £0.4 billion, a rise of 58 per cent from £0.7 billion in 2009 to £1.1 billion in 2010. The increasing number of elderly people in the UK has seen growth in this industry.

  • Computer programming, consultancy and related activities (Division 62) contributing £0.3 billion. Businesses in general reported turnover increasing more than purchases thereby increasing aGVA. 

Table 5: Service Industries (Sections H-S) - Details of Income and Expenditure 2008-2010

United Kingdom by Country and Region

£ billion
Country and Region     Year   Total turnover   Total purchases of goods materials and services Approximate gross value added at basic prices (aGVA)
North East 2008 24 13 11
2009 24 14 11
2010 25 15 11
North West 2008 90 51 40
2009 90 49 41
2010 87 45 43
Yorkshire and The Humber 2008 55 30 26
2009 54 29 25
2010 54 30 25
East Midlands 2008 41 21 20
2009 41 20 20
2010 42 22 21
West Midlands 2008 69 37 32
2009 72 42 30
2010 78 45 32
East of England 2008 81 44 35
2009 78 41 35
2010 85 46 37
London 2008 320 160 162
2009 307 153 155
2010 324 161 164
South East 2008 167 85 81
2009 170 87 83
2010 174 90 85
South West 2008 68 33 35
2009 69 33 35
2010 67 33 35
England 2008 915 473 442
2009 904 470 434
2010 937 486 453
Wales 2008 20 10 10
2009 20 10 10
2010 21 11 10
Scotland 2008 80 39 42
2009 83 42 42
2010 87 43 45
Great Britain 2008 1,016 523 494
2009 1,008 521 487
2010 1,046 541 508
Northern Ireland 2008 12 6 6
2009 12 6 7
2010 11 6 6
United Kingdom 2008 1,028 529 500
2009 1,020 527 493
2010 1,057 547 514

Table source: Office for National Statistics

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Map 5: Service Industries (Sections H-S) - Distribution of Approximate Gross Value Added (aGVA) across the UK in 2010

United Kingdom by Country and Region

Service Industries (Sections H-S) - Distribution of Approximate Gross Value Added (aGVA) across the UK in 2010
Source: Annual Business Survey (ABS) - Office for National Statistics

Background notes

  1. Annual Business Survey - ABS

    The Annual Business Survey (ABS), formerly the Annual Business Inquiry part 2 (ABI/2), produced by the Office for National Statistics, is the UK's key resource for understanding the detailed structure, conduct and performance of businesses across the UK. It is an annual survey of businesses covering the production, construction, distribution and service industries which represent the UK Business Economy. This is about two thirds of the UK's whole economy in terms of Gross Value Added.

    The ABS survey samples approximately 62 thousand businesses in Great Britain from a population of over 1.8 million businesses in the sample frame on the ONS's Inter-Departmental Business Register (IDBR). The responding businesses provide estimates of their turnover, purchases, employment costs, capital expenditure and stocks. For further details on the industry sectors covered see background note 2.

    Data for approximately one thousand Northern Ireland businesses are collected by the Department of Finance and Personnel Northern Ireland and contribute to the UK estimates. 

    In this publication of regional statistics, estimates are published for turnover, purchases, approximate Gross Value Added at basic prices (aGVA) and employment costs for industry sectors and English regions/UK countries. These estimates are collected and presented as monetary values, and give a snapshot of UK business activity that can be used to understand the level of the contributions to the UK economy from different regions/countries and business sectors at any one time. The statistics produced are referred to as structural business statistics.

    The statistics produced help to improve the overall quality of the UK National Accounts and the measurement of Gross Domestic Product (GDP). The ABS forms a major data input to the production of Input-Output Annual Supply and Use Tables used to set the annual level of UK GDP. The Supply and Use tables show the sales and purchases relationships between consumers and producers by industry (see section 2.1 of UK National Accounts (5.31 Mb Pdf) ). These National Accounts tables also show industry estimates of GVA at basic prices (see section 2.3 of UK National Accounts (5.31 Mb Pdf) ), which are different from those shown in the ABS because National Accounts carry out coverage adjustments; conceptual and value adjustments such as subtracting taxes and adding subsidies; quality adjustments and coherence adjustments. The National Accounts estimate of GVA uses input from the ABS and a number of other sources, and covers the whole UK economy, whereas some industry sectors are not included in the ABS. The ABS estimates are not adjusted for inflation.

    In addition the ABS is the main source of data supplied to Eurostat to meet the requirements of the European Structural Business Statistics Regulation (SBS). This regulation ensures that key statistics on the structure of businesses are composed in a way which is comparable across Europe. The financial information is also used by the Scottish Government and the Welsh Government in the compilation of regional and country specific Input-Output tables (for example, Scottish Input-Output ) and Indices of Production (for example, Welsh Indices of Production ).

    For further information on the calculation of approximate Gross Value Added and the regional apportionment method, see background notes 4 and 5.

    For an estimate of the cost to GB businesses for providing their data to the ABS (known as compliance cost) see appendix G of the ONS Compliance Costs Report.

    Visit the ABS webpages for more in-depth information about the ABS, plus the latest news on survey changes and developments.

  2. ABS Coverage

    The results in this Statistical Bulletin represent approximately two thirds of the UK Business Economy in terms of Gross Value Added. In previous releases the UK Business Economy was referred to as the Whole Economy. The presentation is in line with the Standard Industrial Classification SIC (2007), more details of which are in background note 3).

    The industries covered are:

    • Agriculture (support activities SIC 01.6 only), forestry and fishing - Section A,

    • Production industries - Sections B-E,

    • Construction industries - Section F,

    • Distribution industries - Section G,

    • Service industries - Sections H, I, J, K (SIC 65.1 and 65.2 only), L, M, N, P (private provision only), Q (private provision only in SIC 86.1 and 86.9), R and S,

    The main industries excluded are:

    • Agriculture (SIC 01.1, 01.2, 01.3, 01.4 and 01.5 in Section A),

    • Financial intermediation (SIC 64, 65.3, 66 in Section K),

    • Public administration and defence (Section O),

    • Education (public provision in Section P),

    • Health (SIC 86.2, public provision in SIC 86.1 and 86.9 in Section Q).

  3. Standard Industrial Classification

    ABS results are classified according to the Standard Industrial Classification of Economic Activities (SIC) system.  The UK is required by European legislation to have a system of classification consistent with the European Union’s industrial classification system.  The system underwent a major review in 2007. ABS data have been collected and published on the SIC 2007 system since the reference year 2008. Other revisions to the system occurred in 1958, 1968, 1980, 1992, 1997, and 2003.

    UK SIC 2007 is divided into 21 sections, each denoted by a single letter from A to U. The letters of the sections can be uniquely defined by the next breakdown, the divisions (denoted by two digits). The divisions are then broken down into groups (three digits), then into classes (four digits) and, in several cases, again into subclasses (five digits). So for example we have:

         section    C            manufacturing (comprising divisions 10 to 33)
         division    13          manufacture of textiles
         group      13.9        manufacture of other textiles
         class        13.93      manufacture of carpets and rugs
         subclass  13.93/1   manufacture of woven or tufted carpets and rugs

    The full structure of SIC 2007 consists of 21 sections, 88 divisions, 272 groups, 615 classes and 191 subclasses in SIC 2007.

  4. Calculation of Gross Value Added Estimates

    The approximate estimate of Gross Value Added at basic prices (aGVA) published in this release is a measure of the income generated by businesses within their industries and sectors, less the cost of goods and services used up to create the income. The main component of income is turnover, while purchases is the main component of the consumed goods and services (referred to as intermediate consumption). Stock levels which can rise or fall can also have an impact on aGVA, as can the values of subsidies received or duty paid. Businesses' labour costs (for example, wages and salaries) are paid from the value of GVA, leaving an operating surplus which is a good approximation for profit. The cost of capital investment, financial charges and dividends to shareholders are met from the operating surplus.

    The ABS publishes aGVA at 'basic prices'. Gross Value Added (GVA) at basic prices is the output at basic prices minus intermediate consumption at purchaser prices. The basic price is the amount receivable by the producer from the purchaser for a unit of a product, minus any tax payable plus any subsidy receivable on that product.

    There are differences between the ABS approximate measure of Gross Value Added and the measure published by National Accounts. The ABS measure of aGVA is called 'approximate' because it does not fully allow for some National Accounts concepts such as taxes, subsidies or income earned in kind. National Accounts carry out coverage adjustments, conceptual and value adjustments such as subtracting taxes and adding subsidies not included in the ABS measure, quality adjustments and coherence adjustments. The National Accounts' estimate of GVA (see section 2.3 of UK National Accounts), uses input from the ABS and a number of other sources, and covers the whole UK economy, whereas ABS does not include some parts of the agriculture and financial activities sectors, or public administration and defence. The ABS measure covers only market output, whereas National Accounts add non-market output (e.g. government services supplied for free such as education, charities), and own account output (products and services produced and consumed by a business, e.g. a farm growing feed for its own livestock). The ABS total aGVA for the UK Business Economy is around two thirds of the National Accounts whole economy GVA, because of these differences in coverage and calculation.

    GVA at basic prices published by National Accounts in the Input-Output Supply and Use tables is used to calculate the annual level of the UK Gross Domestic Product. By making the adjustments described above, the National Accounts estimates are fully compliant with the European System of Accounts 1995. Further details are available in the notes to the United Kingdom Input-Output Analyses.

    No real (inflation-adjusted) estimates of regional GVA are published in the National Accounts, however, nominal (non-inflation-adjusted) regional GVA and approximate regional GVA at basic prices are published by Regional Accounts and ABS respectively.

    More detailed information of the differences between aGVA and GVA will be available in the ABS Technical Report to be published on the ABS webpages in August 2012.

  5. Regional Apportionment

    The business unit to which ABS questionnaires are sent is called the reporting unit. For ABS, the reporting unit represents an enterprise, which may consist of one or more sub-units (called local units). For example, an enterprise might be the head office for a group of shops. An enterprise may therefore have local units at different locations, and may carry out more than one type of economic activity.

    To produce the regional estimates, the reporting unit data returned by each business are divided amongst its local units. Each local units' allocation depends on the size of its employment, the industry it is in and its geographical location. This is achieved using a standard statistical modeling technique called regression analysis.

    Local unit employment is obtained from the Business Register and Employment Survey (BRES), which collects data from local units, rather than enterprises. Results are then aggregated for each English region / country and industry, using the industry classification of the local units.

    Each local unit is assigned a single SIC code, which corresponds to the unit’s principal activity. Where more than one type of economic activity is carried out by a local unit or enterprise, its principal activity is the activity which contributes most to the value of the unit. Hence, although the sum of the regional results for the whole business economy will match the total for the national results, the sum of the regional results by industry will not necessarily match the UK industry totals, as local units might not all share the same industry classification as their parent units.

    Changes to the regional weighting methodology were introduced to ABS for the revision to the 2009 regional results and the provisional 2010 regional results in July 2012. Analysis of the impact of the new weighting method shows that the resulting differences in the figures are generally small, particularly at high levels of aggregation. Further information on the methodology of the approach and analysis of the impact can be found in Weighting in the Regional System (200.2 Kb Pdf) .

    Note that, as BRES is not carried out at the same time as ABS, differences in the timing of responses from ABS and BRES can lead to some reduction in the quality of the apportionment method.

  6. Disclosure Control and Symbols

    ABS data are suppressed where there is a risk of disclosing information about an individual business, further information on why data are suppressed is available in the ONS Disclosure Control Policy.

    The following symbols are used throughout the ABS releases:

    *     information suppressed to avoid disclosure

    ..     not available

    -      nil or less than half the level of rounding

  7. ABS Quality Information

    A Quinquennial Review (170.4 Kb Pdf) and  Quality and Methodology Information (149.3 Kb Pdf)  for the ABS are available and describe, in detail, the uses of the statistics presented in ABS publications, their general quality and the methods used to produce them.

    The ABS is a stratified random sample, using SIC(2007), employment and country as stratifying variables. As in all samples the estimates from the survey are subject to various sources of error. The total error in a survey estimate is the difference between the estimate derived from the data collected and the true (unknown) value for the population. The total error consists of two main elements; the sampling error and the non-sampling error. The ABS was designed to minimise both these errors.

    Sampling error

    The sampling error is the error that arises because the estimate is based on a survey rather than a census of the population. The results obtained for any single sample may, by chance, vary from the true values for the population but the variation would be expected to average to zero over a number of repeats of the survey.

    • The standard error is the estimated value of the sampling error. Our estimate for a variable, plus and minus the standard error for the variable, gives a range in which the true unknown value for the population should lie. The closer the standard error to zero, the more reliable the estimate.

    • The coefficient of variation is the standard error of a variable divided by the survey estimate, and it is used to compare the relative precision across surveys or variables. The closer the coefficient of variation is to zero, the more reliable the estimate.

    Non-sampling Error

    Non-sampling errors are not easy to quantify but can be caused by coverage, measurement, processing and non-response. The response rate gives an indication of the likely impact of non-response error on the survey estimates.

    Key non-sampling error quality issues for the ABS are:

    • regional apportionment – data are collected by ABS at the head office-level. These data are then divided amongst the businesses’ local sub-units. More detail on this is given in background note 5;

    • ABS calendar year results – ABS results are published for calendar years. However, in order to reduce the burden on respondents, businesses have the option to return data for their business year end, covering any 12 month period up to and including the end of the financial year that follows the end of the calendar year.  It is possible that, particularly if the economy is undergoing a period of rapid change such as during a recession, the different reporting periods could introduce some bias. Analysis of this effect is currently under way, and the results will be published on the ABS webpages;

    • response accuracy – ABS has a rolling programme of questionnaire review, to improve and clarify the survey questions and supporting notes, and hence to help respondents complete the survey more accurately.

    More detailed information on these and other quality and methodology issues will be available in the ABS Technical Report to be published on the ABS webpages in August 2012.

  8. ABS Revisions

    Annual Business Survey statistics are revised in line with the ABS Revisions Policy.

    Planned Revisions

    Planned revisions usually arise from either the receipt of additional data from businesses or the correction of errors to existing data by businesses responding to the ABS. Those of significant magnitude will be highlighted and explained.

    These revisions to published ABS data can be expected at the following times in the normal course of operation of the ABS:

    • Figures for the current survey year will usually be revised between the provisional and revised national releases. For example between the provisional and revised 2010 national releases there has been an overall change in UK Business Economy turnover by 0.3 per cent (£8 billion).

    • The accompanying figures for the previous survey year will be revised at the current survey year's revised national data release and provisional regional data release.

    All other revisions will be regarded as unplanned and will be dealt with by non-standard releases. All revisions will be released in compliance with the same principles as other new information.

    Unplanned Revisions

    All revisions outside those detailed above will be regarded as unplanned. In addition revisions to the current and previous survey years may be issued as unplanned revisions if they are considered to be large enough and of sufficient interest to users that a delay till the next standard release is not justifiable. The timing with which revisions are released will take into account:

    • The need to make the information available to users as soon as practicable; and

    • The need to avoid two or more revisions (to the same data items) in quick succession, where this might cause confusion to users.

    The  ABS Regional Revisions (33 Kb Excel sheet)  table shows the revisions to the 2009 ABS regional data between the publication of the 2009 regional release on 28 July 2011 and the 2010 regional release on 26 July 2012. The largest regional revision to 2009 data in percentage terms was to the North East, where upward revisions of turnover by 2.7 per cent and purchases by 2 per cent resulted in an upward revision of aGVA by 4.4 per cent (£1 billion).

  9. Comparability with Statistics from Other Sources

    ONS also publishes other official business statistics. To find out what these are, and to choose the right data for your needs, please use our Business Statistics Interactive User Guide.

    This interactive guide helps you to find statistics on UK business published by the Office for National Statistics. By selecting your topics of interest, the tool will pinpoint publications that should be of interest to you, and provide you with links to more detailed information and the relevant statistical releases. It also offers guidance on which statistics are appropriate for different uses.

    A comparison of structural business statistics in Europe can be found in Eurostat's Structural Business Statistics Overview.

  10. Uses and Users of ABS Statistics

    ABS outputs may be used to answer questions such as:

    • how much wealth has been created in a particular industry, and how many people are employed by it?

    • has there been a shift in activity from one industrial sector to another, and which industry groups / classes / subclasses are driving the change?

    • are any industries particularly dominant in specific regions or countries of the UK?

    • how productive is a particular industry, such as the chemicals sector, and what is its operating profitability?

    Key users of the output include:

    • National Accounts - for the compilation of Supply and Use tables, which show the sales and purchases relationships between consumers and producers by industry;

    • Indices of Services and Production – to calculate the weights used to produce the indexes, and to calculate the deflation of turnover;

    • Eurostat –  to meet the Structural Business Statistics Regulation requirements for annual structural statistics to inform and monitor European Union policy;

    • the Scottish Government and the Welsh Government – to calculate  the Scottish and Welsh Indices of Production, to produce Scottish and Welsh Supply and Use tables, to inform and monitor policy;

    • the Department of Business, Innovation & Skills  - to assess the structure and performance of UK industries;

    • Local Authorities - for economic research, planning purposes, lobbying and economic strategy development;

    • Business consultants - to understand trends in industry sectors and UK regions;

    • Marketing experts - demographic mapping and market segmentation;

    • other local and national government departments and bodies, businesses, academics and the general public.

  11. ABS Future Releases

    Further releases of ABS data will be:

    • 15 November 2012  - Provisional Results for ABS 2011 (at UK national level),

    • 13 June 2013 - Revised Results for ABS 2011 (at UK national level),

    • 25 July 2013 - Provisional Regional Results for ABS 2011.

  12. Access to more ABS Data

    Provisional 2010 UK regional results at the industry division level (2 digit Standard Industrial Classification 2007) are available free of charge via the 'Data in this release' button at the top of this publication, or from the ABS webpages on the ONS website. The published variables are turnover, purchases, aGVA and employment costs.

    Additional standard extracts containing more detail are available on request. Bespoke analyses are also available but there will be a charge for these. For more information about either of these services please email abs@ons.gsi.gov.uk, or telephone +44(0) 1633 456592 for standard extracts, or +44 (0)1633 456601 for bespoke special analyses

    From June 2012, any bespoke analysis carried out for ABS customers will be listed on the ONS data available on request web pages, and the data sets will be available free of charge on request.

  13. ABS User Engagement

    The Annual Business Survey (ABS) team would like to improve the way that we engage with you, the users of our data. With this in mind, we have set up the Business and Trade Statistics Community on the Royal Statistical Society's discussion forum for users of official statistics, StatsUserNet. This allows you to:

    • comment, question, and offer feedback on ABS and its planned developments, so that improvements to our outputs and services can be prioritised in response to user suggestions;

    • to share information and experience;

    • keep up-to-date with planned developments;

    • access a series of regular analyses showcasing the wide range of uses for ABS data.

    Anyone can join these discussions by following the StatsUserNet link and signing up.

    The results of the 2012 ABS usr survey, and our plans to act on the feedback received, are published on the ABS webpages (223.7 Kb Pdf) .

    You can follow ONS on Twitter and Facebook and view our podcasts on YouTube.

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  15. 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.

Statistical contacts

Name Phone Department Email
Pete Pring +44 (0)1633 456338 Office for National Statistics pete.pring@ons.gsi.gov.uk
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