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Definitions
ANNEX 1
General
� Effect of New Census 2001 Population
Levels The
Labour Force Survey (LFS) and associated
population estimates for Government Office
Regions used in this edition are not
consistent with the latest Census 2001
population levels. The
2001 Census Day population recorded for the
United Kingdom was 1.0 million lower than the
previous mid-2000 figure. As a result, sub -
national LFS estimates for the UK will be re
� weighted by the Office for National
Statistics to the 2001 Census population
level. This will lead to revisions to some of
the regional data in Sections 6, 7, 9, 11 and
13, with the re - weighted figures available
by Summer 2003. 1. Gross Value Added and Household Disposable Income per Head Gross
Value Added (GVA) The
estimates published here have been calculated
on the basis of the European System of
Accounts 1995 (ESA95). GVA is the major
component of gross domestic product (GDP).
Under ESA95 the difference between GVA and
Gross Domestic Product (GDP) is that GDP
includes taxes (less subsidies) on products
(mainly Value Added Tax) while GVA does not.
ONS does not presently regionalize taxes on
products. These
indicators now contain two separate measures
of economic activity that fall under the broad
definition of �GVA�. The data termed GDP
in previous publications are taken from the
regional economic accounts, produced by ONS,
which are calculated based on a series of
economic and labour market surveys. The second
set of GVA data that appear in Tables 3(a) and
3(b) were based on a single survey: The Annual
Census of Production (ACOP), which in future
will be replaced by data from the Annual
Business Inquiry / 2 (ABI/2). The
GVA estimates taken from the regional economic
accounts are a much broader measure of a
regional economic activity than the ACOP
series. Gross
Household Disposable Income (HDI) The
household sector includes traditional
households within the UK in addition to people
living in institutions such as retirement
homes, hospitals and prisons. This sector also
includes the activity of the non-profit making
units that provide a service to households,
for example charities and most universities.
Disposable
household sector income is defined as total
household income less payments of current
taxes on income and wealth (such as income and
property taxes) and social contributions such
as pension and National Insurance deductions.
This series is compiled under the latest ESA95
framework. It should be noted that neither GVA or disposable household income are the same as �wealth�. It is possible for a household to possess substantial material wealth and assets while receiving a comparatively low level of income. 2. Labour Productivity in Manufacturing and Other Industries This
is calculated by dividing residence-based
GVA for the manufacturing sector and the
�other industries� sector, by the number
of employees within each of these sectors.
Estimates of employment in the manufacturing
and other sectors are taken from the Annual
Business Inquiry (ABI) employee jobs series
while the estimates of GVA are drawn from the
regional economic accounts produced by the ONS.
The
count of employees includes both full- and
part-time employees within each sector.
The figures do not include the
agriculture, forestry and fishing sectors. The
GVA estimates are residence-based and differ
from the estimates included in Indicator 1 as
the earnings of employees who commute across
regions to work are allocated to the region
where they live and not where they work.
In practice, residence and
workplace-based GVA differ only in London, the
South East, and the East of England, as ONS do
not make adjustments for other regions. Residence-based
GVA from the regional economic accounts have
the advantage of providing estimates for a
range of industries and for a longer time
series than the equivalent ABI estimates at
the moment.
However, the figures contained in
Tables 2(a) and 2(b) were calculated using a
workplace-based measure of employee jobs (see
Section 7 for details). Using residence based
GVA and workplace based employee jobs means
that the estimates for regions with high
levels of in commuting, such as London, may be
deflated, while in areas with net
out-commuting such as the East of England, the
figure could be overstated slightly. 3.
Investment and Output by UK and
Foreign-Owned Companies Gross
value added (GVA) is used to gauge the output
of foreign owned companies. For a further
description of GVA, please refer to section 1
of the Definitions. Net
Capital Expenditure is used as a proxy for
investment and is calculated by adding to the
value of new building work acquisitions less
disposals of land and existing buildings,
vehicles and plant and machinery. For
the time being, these data continue to be
taken from the Annual Census of Production.
The latest available data are from
1997.
The data are for the manufacturing
sector only. It is expected that new data
covering both regional manufacturing and
services will be available from the Annual
Business Inquiry/2 in time for the next
edition of Regional Competitiveness and the
State of the Regions. 4.
Exports of Goods The
counts contained in Table 4(b) of companies
exporting to EU and the rest of the world are
not fully comparable.
Company details for businesses�
export transactions with non-EU countries are
mandatory and are automatically recorded by HM
Customs and Excise. The counts for exports to
non-EU countries are taken from these.
However, because of the Single European
Market, there is far less recording of
companies exporting to the EU.
Supplementary declarations for
companies exporting to the EU are recorded
through the Intrastat system, which
only picks up businesses exporting goods with
a value in excess of (during 2002) �235,000
to the EU.
Hence, the company counts of EU
exporters will be artificially low as compared
to the count for exporters to the rest of the
world. Note that companies who export to both
EU countries and the rest of the world will
appear more than once in the company count,
that is, in both parts of table 4(b).
Comparisons
between regions should be interpreted with
care because the value added of an
export product may have been generated in
areas other than the region from which the
item was actually exported. Export
trade is assigned to a region through the
postcode associated with a company�s VAT
registration.
Some adjustments have been necessary
for exports to the EU to ensure that
manufacturing that takes place at branch
premises is properly allocated to the region
where the branch is situated.
Exports to countries outside the EU
already contain a regional coding. Exports
of goods by employee job are a DTI estimate
using Customs and Excise data for value of
exports of goods and employee jobs as a
denominator. The employee jobs data were drawn
from the workplace-based Short - Term
Employment Survey (STES) produced by the
Office for National Statistics. Estimates
of average earnings are drawn from the New
Earnings Survey (NES) and include remuneration
for overtime worked during the survey period,
but not other payments such as profit shares
or annual bonuses. NES
data are collected in April of each. The
estimates may be affected by seasonality. 6.
Employment and Employee Jobs Tables
6(a) and 6(b) detail the number and percentage
of people of working age in employment who are
resident in each region or country.
The data contained in both tables are
drawn from the Labour Force Survey and are not
seasonally adjusted. It should also be noted
that at the moment, the estimates in Tables
6(a) and 6(b) are only consistent with the new
2001 Census population at the UK level. This
means that the regional totals in Table 6(a)
will not sum to the UK totals. It is expected
that regional results consistent with the
latest Census will be available in time for
the next edition of Regional Competitiveness
and the State of the Regions. The
data contained in Table 6(c) are drawn from
the Short�Term Employment and Turnover
Survey (STES) carried out by the ONS and show
the number and percentage of employee jobs on
a workplace basis. The STES
measures the number of employee jobs on a
quarterly basis and unlike the data in Tables
6(a) and (b) does not include self-employed
people. Additionally, the data for regions in
Table 6(c) may not sum to UK or England totals
because of approximations in apportioning
estimates collected on a national basis. 7.
Unemployment This
is based on the International Labour
Organisation definition of unemployment which
includes as unemployed; all those who are out
of work, want a job, have actively sought work
in the last four weeks prior to interview and
are available to start work within the next
fortnight; or out of work and have accepted a
job they are waiting to start in the next
fortnight. The
data are not adjusted for seasonal variation,
and are only consistent with the new Census
2001 recorded population at the UK level. 8.
Claimant Count The
Claimant Count is based on the number of
people claiming unemployment-related benefits
before October 1996 and Jobseeker�s
Allowance (JSA) thereafter at Employment
Service offices on a particular day each month
who were out of work, available for, capable
of and actively seeking employment. Claimant
Count rates express the number of claimants of
Jobseeker�s Allowance as a percentage of the
corresponding mid-year estimate of workforce
jobs in the area (plus claimants of
Jobseeker�s Allowance). The number of
workforce jobs is comprised of employee jobs,
agricultural jobs, HM armed forces, self �
employed and persons on government �
supported training schemes. 9. National Learning Targets (England only) There
are five National Learning Targets for
England, created by the former Department for
Education and Skills and the National Advisory
Council for Education and Training Targets.
These aim that by 2002: 1
National Targets for 16 year-olds 50
per cent of 16 year-olds will achieve 5 GCSEs
at grades A* - C or equivalent, and; 2
National Targets for Young People 85
per cent of 19 year-olds will be qualified to
at least NVQ level 2 or equivalent. 3
National Targets for Adults 28
per cent of economically active adults will be
qualified to at least NVQ level 4 or
equivalent. 10.
Proportion of Income Support Claimants Income
support claimants can be grouped into elderly,
lone parents, disabled and other.
Income support can be paid to a person
who is aged 16 or over, is not working 16
hours or more a week and whose income is lower
than what is considered necessary to live on.
11.
Income Deprivation Table
11 and Chart 11 provide the percentage of the
population within families that are dependent
on Income Support (IS) benefit. The percentage
for each of the English regions is included
alongside the proportion for the 20 per cent
of the population living within the �most
deprived� wards within each region and
England. For this indicator ward level deprivation has been defined according to the Indices of Multiple Deprivation 2000 (IMD 2000). The IMD 2000 is an index for areas in England consisting of 33 indicators of deprivation that fall under 6 broad dimensions: income, employment, health and disability, education training/skills, housing and access to services. For this indicator, the number of IS �dependants� reflect the number of persons living in families where at least one member is receiving income support benefit. The information are derived by the DTI using the Income Strand of the IMD 2000 as well as mid � 1998 population estimates taken from the Neighbourhood Statistics web site. 12.
Business Registration and Survival
Rates VAT
registrations are not synonymous with business
start-ups; some registrations are the results
of changes in ownership or legal status of a
business. In Great Britain the total number of
business start-ups is estimated to be around
twice the number of registrations for VAT. It
is estimated that between 1995 and 1999 there
were around 530,000 businesses created. Businesses with turnover below the VAT threshold (�54,000 during 2001) may decide not to register for VAT for a variety of reasons, and so would not be included in these estimates. The
data are compiled from the Inter-Departmental
Business Register (IDBR). The IDBR is a
structured list of around 2 million units in
the UK available for the selection, mailing
and grossing of statistical inquiries. It is
supplied by the ONS and is mainly used as a
sampling frame for official business surveys. The
estimates refer to the location of the head
office or main centre of business activity.
If a new factory owned by a business is
located elsewhere in the UK then it does not
appear as a new registration. The
adult population estimates used as the
denominator for calculating the indices and
rates for all years in Tables 12(b)i and
12(b)ii are a 1999 mid-year figure that is not
yet consistent with 2001 Census estimates. Care should be taken when comparing the rates of VAT registrations/population or stock of businesses between regions since the estimates can be influenced by variations in commuting, industry mix and differences the profile of businesses between regions as well as �actual� changes over time. In addition, there are areas where the stock of businesses is relatively low, so the rate of business formations could be artificially inflated. The
�survival� rates contained in the Table
12(c) are not �actual� business closures.
Firms can be removed from the VAT register for
a variety of reasons including: falling
turnover, mergers, take - over and relocation
in addition to the business actually ceasing
trading. However registrations and
de-registrations are a strong correlate of the
underlying trends in business �birth� and
�death� rates. 13.
High Technology Industry and Research
& Development Activity The
survey of Business Enterprise Research and
Development (BERD) is conducted by the ONS
annually. It is based on a sample of around
4,000 businesses across the UK that are
identified as performing research and
development (R&D) activity by the Annual
Business Inquiry. Included are all �large�
R&D performers, plus a sample of smaller
businesses that are deemed as �lesser�
R&D performers. Government organisations,
higher education establishments and registered
charities are not included within the survey
sample. It
is important to note that this survey assesses
the value of R&D performed by businesses
in the UK, irrespective of where the funding
for the R&D activity came from (i.e.
business, government or foreign funding). It
also covers the R&D activity by UK firms
on UK territory outside of the mainland (i.e.
North Sea oil exploration). The
sample size and response rates (at around 94
per cent) are sufficient to allow
dissemination of R&D activity within
businesses down to regional and sector level High
Technology Industry Employee Jobs These
estimates are drawn from the Annual Business
Inquiry/1 and the Northern Ireland Census of
Employment. Estimates
of high and medium-high technology jobs for
Northern Ireland are included in the Regional
Competitiveness Indicators for the first time. The
definition of high technology industry itself
is based on that specified by the Organisation
for Economic Cooperation and Development (OECD)
in 1997. The
following table shows the sectors that are
covered by the definition �high-tech� and
�medium high-tech� and which Standard
Industrial Classification 1992 (SIC92) class
or sub � class corresponds to each.
14.
Transport Chart
14(b) on the mode of transport used to travel
to work is defined as follows: Private
- car, van, mini-bus, motorcycle. 15.
Industrial Property and Office Rental
costs Type
3 - Industrial / Warehouse units: Steel framed on concrete base, concrete block or brickwork to
2m, metal PVC covered cladding above.
Eaves height 4.3-5.5m with lined roof.
10-15 per cent office content.
Detached on own site with private
parking & loading facilities. Type
1 Office Accommodation:
Town Centre location. Self contained suite
over 1,000 m2 in office block
erected in last 10 years, good standard of
finish with a lift and good quality fittings
to common parts. Limited car parking
available. 16. Derelict and Vacant LandThe
information covering previously developed land
now vacant or derelict are drawn from the
National Land Use Database (NLUD) see: http://www.nlud.org.uk/.
These data are based on a periodic survey of
unitary and local authorities
covering vacant and derelict sites and other
previously developed land and buildings that
may be available for redevelopment.
Latest data refer to 2001. Table
16 covers several distinct types of vacant or
derelict land: Previously
developed vacant land:
Land previously developed and is now vacant
which could be developed without treatment.
Treatment includes: demolition, clearing of
fixed structures/foundations levelling etc. Derelict
land and buildings:
Land so damaged by previous industrial
or other development that it is incapable of
beneficial use without treatment. This
includes abandoned or unoccupied buildings in
an advanced state of disrepair. All land that is unused or may be available for redevelopment: Comprises previously developed vacant and derelict land: vacant buildings; land or buildings currently in use, which are allocated in a local plan for any developed use, have planning permission for any use (including single residential dwellings with planning permission for at least one additional dwelling) or with known potential for redevelopment. Definitions ANNEX 2 Enquiries and Links to Relevant Web Pages Tables
1(a) to 2(b):
Regional Economic Accounts, Office for
National Statistics. Tables
13(a) to 13(b):
Regional and Local Statistics Division
(Regional GVA) and Financial/Accounting
Surveys Division (Regional Research and
Development). Tables
14(a) to 14(c):
Labour Market Division, ONS Tables
15(a) to 15(b): Valuation Office Agency, Inland Revenue. Web
Link:
http://www.voa.gov.uk/
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